Local IT contributions to building a global information system portfolio after spin-off

Abstract

Purpose: To identify the main contributions a local IT team can make to build a global portfolio of information systems in a new organization created from a business spinoff. Originality/value: Many multinational corporations have chosen to create spinoffs as an opportunity for strategic reorientation, focusing on specific business verticals. The separation process resulting from the spinoff is critical in IT activities, especially for the business unit spun off from the leading organization, which needs to build a new global portfolio of information systems. Although this is commonly treated as an international project, it must adhere to the strategy of all corporate units (both headquarters and subsidiaries) to maintain a competitive advantage in its markets. Design/methodology/approach: We present a single qualitative and exploratory case study involving a secular multinational of European origin in the automotive sector that underwent a spinoff process of its main business verticals. Semistructured interviews were carried out with the IT team responsible for one of its subsidiaries in Brazil, which actively participated in this process. Results: We show that the effective participation of the local units’ IT teams, with resources that are already available within the organization and knowledge of the market needs, is an alternative to supporting the central unit responsible for the composition of teams, supporting the local business requirements, and consequently meeting the expected corporate goals through implementation of the spinoff.