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IT Carve-Out Checklist – ERP Mergers and Acquisitions by Scaled Solutions Group

IT Carve-Out Checklist – ERP Mergers and Acquisitions by Scaled Solutions Group

January 18, 2025

18 Jan IT Carve-Out Checklist – ERP Mergers and Acquisitions by Scaled Solutions Group

Posted at 21:48h in Uncategorized by

Ensuring a Seamless Transition to Independent IT Operations

A well-planned IT carve-out minimizes business disruption, ensures compliance, and sets up the new entity for long-term operational success. This checklist outlines key phases and deliverables to execute a successful IT carve-out.

️ Phase 1: Planning & Assessment (Pre-Carve-Out)

✔️ Define Scope & Objectives

  • Identify systems, applications, and data to be separated.
  • Determine new IT infrastructure (adopt existing, migrate, or build from scratch).
  • Assess compliance risks, operational dependencies, and integration needs.

✔️ Legal & Compliance Review

  • Review vendor contracts, SaaS subscriptions, cloud services, and software licenses.
  • Ensure compliance with GDPR, HIPAA, SOX, CCPA, ISO 27001 based on industry requirements.
  • Define data retention policies and regulatory reporting needs.

✔️ IT Asset & Data Inventory

  • Catalog hardware, software, cloud assets, and databases.
  • Identify shared assets (to be duplicated, transitioned, or decommissioned).
  • Establish data ownership and access control policies.

✔️ Separation Strategy & IT Governance

  • Assemble IT carve-out leadership team (PMs, Security, Compliance, Infrastructure).
  • Develop transition roadmap with key milestones, including Day 1 readiness.
  • Define risk management & cybersecurity protocols.

✔️ Budget & Cost Analysis

  • Estimate costs for new licenses, cloud migration, infrastructure, and IT support.
  • Identify cost-sharing opportunities with the parent company (if applicable).
  • Forecast long-term IT expenses and operational efficiencies.

Phase 2: Infrastructure & Security Setup

✔️ Network & Security Architecture

  • Deploy new VPNs, firewalls, and network segmentation for independent operations.
  • Implement zero-trust security models and endpoint protection (EDR/XDR).
  • Establish secure data transfer protocols between parent and carved-out entity.

✔️ Cloud & On-Premise Infrastructure

  • Decide between on-premise, cloud-based, or hybrid IT operations.
  • Set up separate AWS, Azure, or Google Cloud environments.
  • Ensure secure workload migrations to prevent data loss.

✔️ Identity & Access Management (IAM)

  • Implement new Active Directory (AD) or Azure AD tenants.
  • Set up Multi-Factor Authentication (MFA) and Single Sign-On (SSO).
  • Remove legacy user credentials and enforce role-based access control (RBAC).

✔️ Endpoint & Device Management

  • Reconfigure laptops, desktops, mobile devices, and IoT assets.
  • Deploy Mobile Device Management (MDM) policies.
  • Enable remote wipe capabilities for security compliance.

✔️ Backup & Disaster Recovery (BCDR)

  • Set up new backup solutions (Veeam, Druva, Acronis, etc.).
  • Test disaster recovery plans to ensure business continuity.
  • Establish Recovery Time Objectives (RTO) and Recovery Point Objectives (RPO).

️ Phase 3: Application & Data Migration

✔️ Enterprise Application Separation

  • Migrate or deploy new instances of ERP (Epicor Prophet 21), CRM, HRIS, and other enterprise applications.
  • Review licensing terms and procure new licenses where required.
  • Configure API integrations for shared applications.

✔️ Data Migration & Integrity

  • Identify and encrypt sensitive data (PII, financial records, customer data).
  • Use ETL (Extract, Transform, Load) tools for seamless migration.
  • Perform data validation and integrity checks post-migration.

✔️ Email & Collaboration Tools

  • Separate Microsoft 365 or Google Workspace tenants.
  • Migrate SharePoint, Teams, Slack, Zoom, Jira, and Confluence.
  • Implement email security (DKIM, SPF, DMARC).

✔️ Cybersecurity & Threat Monitoring

  • Deploy a new SIEM (Security Information and Event Management) system.
  • Set up SOC (Security Operations Center) monitoring for early threat detection.
  • Conduct penetration testing and vulnerability assessments.

Phase 4: IT Service Management & Vendor Contracts

✔️ IT Service Desk & Support

  • Establish a new IT helpdesk system (ServiceNow, Zendesk, Freshservice).
  • Define IT support SLAs (Service Level Agreements).
  • Train employees on ticketing system and escalation procedures.

✔️ Vendor & License Management

  • Review SaaS contracts, cloud agreements, and IT service providers.
  • Negotiate new vendor contracts for IT services and software licenses.
  • Ensure vendor data sharing agreements meet security requirements.

✔️ Employee Training & Change Management

  • Provide training on new applications, policies, and cybersecurity awareness.
  • Distribute IT process documentation and user guides.
  • Implement feedback mechanisms for quick issue resolution.

Phase 5: Day 1 Readiness & Post-Carve-Out Optimization

✔️ Final Testing & Dry Runs

  • Conduct end-to-end system testing before go-live.
  • Validate network, applications, and security policies.
  • Ensure proper functionality of ERP/CRM, email, and access controls.

✔️ Go-Live Cutover Plan

  • Deploy a Day 1 IT support team for urgent technical issues.
  • Monitor real-time IT performance and security logs.
  • Provide an emergency escalation path for critical systems.

✔️ Post-Carve-Out Monitoring & Optimization

  • Conduct performance reviews on network latency, system efficiency, and security.
  • Optimize cloud costs, licensing, and infrastructure.
  • Establish a continuous improvement roadmap for IT operations.

Key Deliverables (Final Checklist)

✅ IT Governance & Compliance Policies
✅ Fully Separated IT Infrastructure & Security Framework
✅ Data Migration Plan & Validation Reports
✅ New IT Service Desk & Support SLAs
✅ Vendor Agreements & Licensing Documentation
✅ Employee Training & Adoption Plan
✅ Post-Go-Live IT Performance & Security Monitoring

Why Choose Scaled Solutions Group?

At Scaled Solutions Group, LLC, we specialize in Epicor Prophet 21 ERP implementations, IT carve-outs, and complex enterprise transitions. Our expertise ensures a seamless IT separation, compliance with regulations, and minimal operational disruption during mergers, acquisitions, and divestitures.

20+ years of ERP & IT consulting experience
Proven success in large-scale ERP migrations & carve-outs
Expertise in data migration, security, and cloud infrastructure
End-to-end implementation & post-go-live optimization

Need assistance with your IT carve-out in Chicago? Contact Scaled Solutions Group today! For more information, contact Scaled Solutions Group at (866) 957-8419 or info@scaledsolutionsgroup.com or visit www.Get-Scaled.com.