IT strategy for company mergers: what to watch out for

When two businesses join forces there are many aspects to plan for – an IT strategy for company mergers is definitely one of them and if well executed, it can deliver plenty of long-term benefits.

Yet often, the IT strategy for company mergers is neglected somewhat, meaning that businesses are less likely to make the most of the synergies available to them.

Usually, this is because IT or operations staff are excluded from the due-diligence process.

They are therefore denied the platform to offer advice and recommendations on the practicalities of combining two IT systems which are likely to be vastly different in their setup.

So what are the IT advantages when two businesses become one and what should an IT strategy for company mergers prepare for? Let’s take a look.

The IT benefits of company mergers

There are several ways that the new combined business can lower its costs with IT synergies.

Correctly handled, combining the two IT systems should result in lower infrastructure costs, particularly when it comes to facilities.

Whether offsite or onsite backups are used, combining this arrangement for both sets of hardware will result in one set of costs instead of two.

The merger could also lead to a lower IT headcount, further reducing company outgoings.

Depending on the type of work conducted by the businesses, integrating their customer data could create cross-selling revenue opportunities too.

These are some of the benefits of successfully implementing an IT strategy for company mergers – but what are the best ways of carrying out the process from an IT perspective in the first place?

Tips for a smooth and efficient process

One of the most important aspects to plan for is how to minimise downtime.

Revenues could be hit and staff could become frustrated if they are unable to work for several hours due to time lost merging the IT systems.

Just like when moving office generally, one way to get around this could be to carry out the required infrastructure work over the weekend if this is feasible.

Beyond that, one of the best ways of ensuring a streamlined merger is to have the most flexible IT architecture possible.

This could mean incorporating desktop virtualisation or cloud computing to good effect, for example.

In some cases it may well be worth upgrading a company’s IT systems before the merger, specifically with a view to easing the transition.

IT strategy for company mergers: summing up

Depending on the size and nature of the businesses, a blueprint IT strategy for company mergers will vary significantly – but rigorous planning in advance will always be rewarded.

The aim is to create the most efficient process possible with minimal or no downtime, in order to reap the benefits of IT synergies such as lower infrastructure costs and increased cross-selling opportunities.

There are so many ways of optimising an IT strategy for company mergers and if you would like to know a few more then just let us know – please get in touch for more information.