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CASE STUDY/ RETAIL

Retail giant executes years of successful M&A and Divestiture activity with Softtek

Agile Portfolio Evolution | IT Infrastructure Services
NextGen IT Operations | Digital Transformation Services

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About the customer

A multinational retail leader, serving millions globally with an extensive network of stores and ecommerce operations in grocery, pharmacy, gas station, and wholesale sectors.

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US $100B+ revenue

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500K+ associates

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50+ years of excellence

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Business challenges

Over the course of more than a decade and continuing into 2024, this retail giant faced significant challenges in integrating and disconnecting IT and business services during periods of international expansion and strategic refocusing. These projects, arising from a series of acquisitions and divestitures, were instrumental in aligning the company with emerging market opportunities and evolving operational objectives:

1

Adhere to Transitional Service Agreement (TSA) requirements during multiple integration and disconnection projects, with a strong focus on data protection laws, quality standards, and critical timelines.

2

Integrate diverse IT systems and business processes across newly acquired entities, ensuring operational coherence and minimal disruption to existing services and customer experiences.

3

Ensure seamless IT and business service disconnections, transferring and migrating processes, data, and applications to new owners without impacting ongoing retail operations.

4

Address the challenges of coordinating with multiple stakeholders across different international markets, balancing unique local requirements with overarching corporate strategies and goals.

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How Softtek comes into play

In supporting mergers, acquisitions, and divestitures, Softtek leveraged its deep process knowledge and Six Sigma methods to develop synergistic and standardized transitional solutions for global markets. Our strategy complemented the client’s Integration Center of Excellence, crucial in attaining swift market entry and minimizing disruptions during the integration and/or separation of IT operations over the years.

The following are some key highlights to our approach:

Documentation of functional area processes: Facilitated the replication and reuse of effective methodologies and provided previously unavailable consultative resources for future projects.

Change management consulting: Addressed the complexities of aligning diverse functional areas with integration and separation objectives, ensuring compliance with regulations and TSAs.

Prioritization of process over technology: Maintained uninterrupted operations during critical transitions, in line with TSAs.

Tailored PMO and on-demand resources: Demonstrated ramp-up scalability and dedication to changing requirements.

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Business impact

With meticulous documentation and a strong commitment to compliance, Softtek and the client successfully navigated the complexity of years of M&A and divestiture activities. These concerted efforts significantly optimized market entry and exit timelines, resulting in favorable outcomes for the client, as well as the respective buyers and sellers involved in the process.

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Zero TSA-related penalties on the client.

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Reduced market penetration cycle times.

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Reduced integration lead time from 16 months to 9 months.

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100% of divestiture projects completed on time or early.

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