Business Carve-out for a Financial Services Company With a Strong Global Footprint

The Challenge

Our client’s IT organization was facing a tough schedule of less than nine months to divide up its global IT architecture and operating model. Making the carve-out even more challenging was limited transparency across the 1,000+ systems that made up their global architecture. Getting the separation right was critical as not only did the new and old businesses need to be operational in time for “Day 1”, it all had to happen without disrupting day-to-day operations.

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The Approach

Through a process of workshops, assessments, and automated tooling, our BCG team created a global app and infrastructure landscape, as a baseline to ensure transparency for the future of the project. Next, we set a target picture, defining Day 1 critical apps for new business to operate. The BCG Platinion team ruthlessly de-prioritized the ‘long tail’ of non-critical apps to ensure Day 1 was viable and achievable. Transition services, frameworks and agreements were set up for high-risk applications that could not be separated in time for Day 1. We also initiated the program management office and project execution support services (templates, tracking, processes, vendor management) that were essential to enable timely client delivery. Delivery involved a unique ‘one stop shop’ service: Program management rigor combined with architecture advisory to ensure on time and high quality delivery of the IT separation program.

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The Impact

1. An activist PMO function brought clarity to a complex delivery environment.
2. Legal frameworks were put in place to cleanly carve-out the old and new technology organisations and ensure a seamless Day 1 separation.
3. Prioritized on-time separation delivered a measurable increase in shareholder value through more effective and specialist entities.

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Looking Into the Future

On time separation enabled an increase in shareholder value as the Old Business and the New Business were able to separate into more effective and specialized entities in line with the broader business strategy.

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