Blog Carve In/ Carve Out: Ondersteun uw IT-projecten tijdens transformaties

The Keys to Successfully Executing Your IT Carve In and Carve Out Projects

In the context of mergers, acquisitions, or asset divestitures, so-called “Carve In” (integration) or “Carve Out” (separation) projects are becoming increasingly common. While they serve clear financial or legal objectives, they often raise IT challenges that are underestimated.

A poorly prepared transition can weaken security, disrupt business continuity, and severely degrade the user experience.

In a context of frequent structural transformation - external growth, refocusing, asset sales - companies are increasingly faced with Carve In (integration of an entity) or Carve Out (separation of an activity) projects.

And while the terms are well known to CFOs and legal departments, the IT implications are still too often underestimated.

Defining the Technical Scope of a Complex Project

Carve Out involves decoupling an entity from an existing information system to make it autonomous: creating an isolated environment, redefining access, licenses, tools, and enabling the new structure to operate independently. Conversely, Carve In consists of absorbing an external entity into a consolidated system by harmonizing tools, security policies, workflows, and access rights.

On paper, these operations may seem symmetrical. In practice, they pose specific challenges - understanding technical interconnections, avoiding duplication, managing hybrid scopes, and reconciling sometimes incompatible business uses.

This foundational work always begins with a rigorous assessment such as mapping systems, data flows, dependencies, and vulnerability zones.

Don’t Overlook the Human Impact and Service Continuity

Any change to the information system impacts users. During Carve phases, the risks of disruption to daily operations are numerous - such as inability to access shared data, interruption of communication between tools, temporary suspension of services, or in the most critical cases, data loss.

It is therefore essential to take the employees’ perspective: which interfaces are changing? Which processes will be affected? What support should be planned? Experience shows that the smaller the team, the less automation is possible, and the more on-the-ground support and education are needed.

Security as a Fault Line… or a Line of Defense

One of the most common pitfalls remains the alignment of security policies. When integrating or separating an entity, systems are exposed to data transfers, account migrations, and identity reconfigurations. Managing access, roles, and permissions becomes a critical point.

The security level must never be compromised. In practice, a specific analysis of architectures and risks is often required: what policies and tools are in place? Are they compliant with group standards? Can certain components be retained, or must everything be migrated? Too often, vulnerabilities emerge during rushed transitions, where an old system remains “temporarily” connected… until an incident occurs.

Streamline and Modernize: The Hidden Opportunity

A Carve project can also be a tremendous modernization opportunity. Merging two entities is the perfect time to streamline tools, pool licenses, and reset certain IT practices. Conversely, separating a structure can sometimes allow a fresh start with more agile, better-sized, and less costly solutions.

But these benefits must be anticipated during project planning—not discovered in a rush halfway through. The stakes are also commercial and contractual, for example in renegotiating licenses, reallocating cloud resources, managing supplier access… All these aspects must be considered (very) early on.

A Structured, Managed Approach

In terms of methodology, each project must rely on a proven migration scenario. This includes a testing phase, a user pilot, and either a phased or big bang deployment depending on the organization’s size and service criticality.

But beyond the technical aspects, success depends on joint management of IT, business, and legal components, with strong alignment from the earliest stages, as well as adapting processes around system operations.

Preparing for the Future: Making IT a

In a world where all business functions are digital, no reorganization can succeed without a deep understanding of IT infrastructure. Carve In / Carve Out projects must stop being seen as secondary technical undertakings. They deserve to be treated as full-fledged strategic projects, serving the company’s resilience and transformation.

When well anticipated, these projects can not only minimize disruption risks but also create value through tool rationalization, improved security, and alignment of IT systems with the organization’s future vision.

Unlock strategic value from your carve in and carve out initiatives. Discover how our Mergers and Acquisitions solutions help streamline IT, reduce risk, and accelerate transformation.

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