Cargotec-Kalmar Separation: Achieving Smooth IT/ERP carveout with TCS

Industry

HIGHLIGHTS

Cargotec’s strategic transformation programme was a complex initiative that involved the separation of Kalmar and listing it as a separate company on the stock exchange.
TCS played a key role in Kalmar’s separation, IT projects related to Day 0 readiness, Day 1 stock listing and carveout of complex applications like SAP ERP
Despite the complexity, TCS ensured smooth operations without affecting business continuity, and successfully met all IT separation timelines without any hitch.

Overview

Cargotec, a global leader in cargo and load-handling solutions

Cargotec, through their unique position in ports, at sea, and on roads, helps optimize global cargo flows and create sustainable customer value.

In March 2023, Cargotec embarked on a journey to separate its core businesses, Kalmar and Hiab, into two focused, world-leading, standalone listed companies to unlock shareholder value. The aim was to allow both businesses to pursue sustainable, profitable growth opportunities independently. Kalmar offers a wide range of heavy material handling equipment and services for ports, terminals, distribution centres, manufacturing and heavy logistics.

TCS helped Cargotec ensure a smooth IT carveout for Kalmar by adhering to milestones without impacting the normal business. TCS planned and executed the SAP Enterprise Resource Planning (ERP) system’s separation involving 38 legal entities in 27 countries globally.

Challenges

High-stakes IT separation of Kalmar from Cargotec

The IT separation of Kalmar from Cargotec was a complex and demanding program. It covered over 250 applications including ERP systems, IT infrastructure, network architecture, and associated end-user services, all within an ambitious timeline to create a standalone IT environment for Kalmar.

Solution

Business transformation

Leveraging its deep customer knowledge and expertise in business transformations, TCS partnered with Cargotec to execute IT carveout for Kalmar.

TCS adopted an integrated approach by collaborating with over 40 IT vendors of Cargotec to mitigate risks and ensure a comprehensive and efficient separation process is put in place. TCS successfully delivered SAP projects that supported legal splits across eight countries, enabling stock listing readiness, and the carve-out of critical applications like SAP and ServiceNow. For SAP separation, TCS provided comprehensive solutions, including best-fit technical architecture and solution design, and partnered with SNP Group for automated, software-based data migration, augmented by TCS’ SAP application services.

benefits

A complex task accomplished seamlessly

TCS planned and coordinated the complex cutover. Over 40 applications connected to SAP were synchronized to ensure a risk-mitigated, seamless big-bang go-live across 38 legal entities in 27 countries globally.

The meticulous execution ensured key Kalmar separation milestones were achieved as per the planned schedule, while enabling 100% continuity of business operations post ERP carveout and a faster IT transitional service agreement (TSA) exit.

TCS’s ability to drive business transformations through risk mitigation, structured governance, and strategic execution continues to empower enterprises in navigating complex business transitions successfully.

TCS had an invaluable role in the IT carveout planning, execution, and support…. Their ability to manage both the technical aspects of the IT systems and the change management required in such a huge program enabled the positive outcome. The key success factors were their professional approach, capacity to resolve issues and manage complexity, as well as the dedication and attitude of the whole team.’’

SOILI MAKINEN
Group CIO, Cargotec Oyj

At TCS, we are committed to driving seamless and sustainable transformations for our clients. By leveraging our deep industry expertise, customer contextual knowledge and innovative approaches, we ensured business continuity and positioned Cargotec’s separated companies for future growth."

ARUN PRADEEP SURENDRA MOHAN
Business Head – Travel and logistics, EMEA, TCS

We are extremely pleased to deliver a very strategic IT carveout program for Cargotec with the utmost quality and in a timely manner, enabling Cargotec to achieve its strategic objective. The successful IT carveout is a great testament of TCS’ deep industry knowledge, M&A IT carveout experiences and customer-centricity.”

SUBHADIPTA SAMANTRAY
Country Head, TCS, Finland

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TCS ensures seamless IT carveout in Kalmar’s separation from Cargotec

Industry

HIGHLIGHTS

On this page

Overview

Challenges

Solution

benefits

Transformation starts here

Find out more

TCS is here to make a difference through technology.

We deliver excellence and create value for customers and communities.

Extraordinary expertise leads to remarkable results.

Want to be a global change-maker? Join our team.

Find the latest news about TCS in our Newsroom

Recent Press releases

Recent News

Recent recognitions

Upcoming events

TCS works hand in hand with world-leading investors.

Industry

HIGHLIGHTS

On this page

Overview

Challenges

Solution

benefits

Related reading

Transformation starts here

Find out more

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