SAP Carve-Out Explained: Definition, Process & Strategic Benefits

An SAP carve-out is a structured approach to separating selected business units, data sets, or processes from an existing SAP system, often during mergers, divestitures, or organisational restructuring. This article explains the definition of an SAP carve-out, outlines the end-to-end process, and highlights the key benefits for organisations. It covers critical steps such as scope definition, data selection, system separation, validation, and compliance management. Readers gain insight into common challenges, risk mitigation strategies, and best practices to ensure business continuity. The guide also shows how a well-planned carve-out reduces complexity, lowers IT costs, and enables smoother transitions while preserving data integrity and regulatory compliance.