Don't expect cost savings from a merger, say IT directors

Businesses have a confused picture of how a merger or acquisition affects the IT department, according to a survey out today.

Sixty-eight per cent of the IT directors polled by Hitachi Data Systems said cost savings from technology consolidation in the wake of mergers and acquisitions seldom materialise as quickly as business executives expect.

Furthermore, 80 per cent warned that additional short-term IT investment was normally required before cost savings can be realised.

The survey also revealed 78 per cent of IT directors feel the rest of the business is unaware of the extent of the task their departments face in the wake of a merger or acquisition.

Eighty-five per cent listed mergers and acquisitions as one of the most stressful periods for IT departments.