In the changing business world, many companies are faced with the possibility of merging or going through an acquisition. These changes in business mean first going through the process of due diligence and this includes IT due diligence.
Due diligence is the process by which you investigate a company you may be considering either entering into a contract with or even merging with. In general due diligence activities cover a wide range of business investigation while IT due diligence is dealing directly with a company’s technology.
IT Due Diligence
IT due diligence is a process, and it is important to find a qualified professional to assist with this process. There are four steps to the process of examining a companies IT infrastructure: examining the company’s standards, inventory, and systems; evaluation of all databases and applications in use; assessment of IT support services in place and delivery; and an analysis of the IT company structure in regards to the support of business activities.
The IT Due Diligence Process
After a professional takes you through the process of gathering information in regards to the IT portion of the company in question, you may also want to take the IT due diligence a step further and have a full security analysis performed. This will not only look at how the other company works in regards to their IT, but will also help you examine the possible threats to security you may see in the future. This analysis is an important step as it clearly defines the type of data that needs to be protected, where the data is stored as far as the system set up and how it is currently protected.
Understanding the basics of IT due diligence and the importance of having a professional assessment done prior to a merger or a big contract can help you avoid the headache of finding out that there were underlying IT issues after the fact. While there are often very different IT procedures in place from company to company, it is important to have a clear picture as to how they can mesh if they need to.
The advantage of having a professional take on the project of performing the IT due diligence is pretty simple, they have the experience to fully explore and analyze the IT portion of the business. IT due diligence is just as important as the basic due diligence since this can be a costly mistake if not taken into careful consideration.