Reverse Integration: When the Parent Must Adapt After a Divestiture
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Divestitures don’t just affect the business unit being sold, there’s also significant impact to the parent company. IT often has to refactor systems, reassign resources, remove entitlements, and even redesign processes that were previously shared.
In some cases, the divested unit was the primary user or driver of a system, and the remaining business must now determine whether to retire, consolidate, or replace the tool. There may also be a shift in license counts, support models, or vendor relationships that need renegotiation.
We call this “reverse integration” work where the focus is on adjusting and optimizing what remains, rather than what’s being separated. While often overlooked, it’s critical for long-term stability and cost control.
What types of reverse integration activities have you encountered? Do you handle them as part of the divestiture project, or does it fall to operational teams after the fact?
I agree with your post, we have a specific team set up titled “PSI” or process system integration which focusses specifically on all of these items you mentioned. They are largely comprised of members from the IT team, however, they play a pivotal role and wear multiple hats to identify specific licenses for teams other than their own.
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