It was done to improve processes that would result in cycle time reduction and cost reduction. We starting moving IS into the business units 20 years ago. One major success was that our product cycle to get a new drug application submitted to the FDA was reduced from 48 to 22 months. The process has actually affected morale and productivity favorably, because it has put the individual in a position where he or she can effect change, rather than wait for someone else to do it for them. Severe changes have been made, including elimination of most centralized computer services and merging of financially oriented IS departments with technology oriented departments, which gave individual departments more direct control over their own IS needs.
Morale is at an all-time low.
The restructuring and decentralizing of information services have been massively divisive and have caused petty political battles over information territory. Most fear that the worst is yet to come, and when people are in constant fear of losing their jobs, they can't be productive, efficient or even friendly members of a technological team.