IT DUE DILIGENCE

A due diligence assessment of an organization’s IT function is often required by investors, as part of a merger or acquisition. Technical due diligence may also be required from time to time by the owners of a business, to ensure a better understanding of the opportunities, costs, and risks involved in the IT function. In either case, there are benefits to having a specialized and independent third party perform the technical assessment.

IT due diligence is the process designed to find a clear and comprehensive picture of the Total Cost of Ownership (TCO) of a company’s IT infrastructure as well as the risk associated with any future mergers or acquisitions.

There are four steps to the IT due diligence process:

• Assessment of the company’s standards, inventory, and systems
• Assessment of all databases and applications in use
• Assessment of current IT support services and vendor operations
• Analysis of the IT Company’s structure and how it enhances their core business activities.