Post-Merger Integration Creates one of Germany’s Largest IT Service Providers for the Financial Sector
Post-merger integration of IT service provision in Germany
- Industry
- Financial Services
- Country
- Germany
- Solution
- Transformation Consulting
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2006-03-01 05:16 PM
The Situation
In 2001, two major financial institutions in Germany―a bank and an insurance company―merged. As a consequence, IT service provision for each was consolidated to form one of the largest IT service providers for financial services in Europe. In order to gain significant cost reductions and strengthen competitiveness, the complexities of integrating and unifying these two large organizations was enormous.
Since 2002, Capgemini is assigned to actively accompany the process of post-merger integration on a strategic and operational level. The companywide process has affected 13 locations in Germany and one branch in Singapore.
The Solution
With specific post-merger synergy goals to achieve, the client and Capgemini launched a comprehensive integration program. A joint team manages risks and runs the program in three phases:
- Phase 1 focused on planning the merger of technologies, processes and organizational units.
- Phase 2 implemented the merger by optimizing technology platforms and data centers and improving the organizational structure by centralizing responsibility.
- Phase 3 is characterized by industrialization; implementing standardization, centralization and automation of technology and processes.
Capgemini helped to master several tactical issues as well. Among these were to evaluate the project portfolio, establish and organize a target-oriented, transparent reporting system together with the definition of a comprehensive communication and mobilization plan.
The Result
The technical and organizational integration program is a great success. The client is able to get significant benefit from the exploitation of cost reductions and maintain its leadership position.
The implementation of Capgemini’s post-merger strategy helps the client not only to become more efficient but also to strengthen competitiveness as an industrialized IT service provider in the long run.
The new organization is able to respond more quickly to cost pressures, market volatility and competitive threats.
Capgemini constantly receives an extremely positive assessment by the client in managing the program on time and above expectations.
