10 Things You Don't Know About NTT Data
A New Chapter For NTT Data
Dell agreed Monday to sell its Perot Systems IT services business to Toyosu, Japan-based outsourcing firm NTT Data for nearly $3.1 billion.
NTT Data is a $14 billion, 80,000-employee IT services provider with operations in more than 40 countries. It was founded in 1967 as part of the Nippon Telegraph and Telephone (NTT) Corp. and spun off into a separate company in 1988.
NTT Data has undertaken a massive expansion outside Japan over the past decade, landing high-profile government, automobile and private sector clients.
Here's a look back at some of the most interesting and unusual things NTT Data has delved into in the past 49 years.
10. Less Than Half Of NTT Data's Sales Were To Japan's Public, Health And Financial Segments
Nearly 45 percent -- or $6.53 billion -- of NTT Data's sales in the most recent fiscal year were to the Japanese finance, health-care and public administration verticals, down from more than 50 percent just two years earlier.
This segment faces a challenging operating environment because of decreased revenue in existing large-scale systems in the public sector.
That has been more than offset, though, by NTT's global business segment expanding from 17 percent of the company's overall business two years ago to 27.9 percent -- or $4.1 billion -- today. The company has seen strong growth in its consulting, outsourcing and business process outsourcing solutions.
9. NTT Data Sells More Than $1 Billion Of SAP Each Year
NTT Data recently entered into a global services partnership with Walldorf, Germany-based SAP, a move that is expected to enhance NTT's global competitiveness and enable the company to provide more value through state-of-the-art technology.
SAP is one of NTT Data's largest vendor partners, with the company generating more than $1 billion in SAP-related revenues each year.
In recognition of NTT Data's SAP initiatives, the company received the highest commendation in HfS Research's 2014 SAP Services Blueprint Report.
8. NTT Data Has Powered IT Systems For Luxury Car Makers BMW And Mercedes-Benz
NTT Data plunged into the automobile industry in 2008 when it converted BMW's old information systems subsidiary into a subsidiary of its own.
NTT beat out many other global IT companies for a multiyear contract with Stuttgart, Germany-based Daimler -- which makes Mercedes-Benz -- thanks to its strong automotive track record and presence in India, Turkey and the United States.
The company is now wrapping up operation and maintenance of an enterprise resource planning system that consolidates Daimler's order and inventory management operations.
NTT Data also supported BMW Welt -- a showcase and distribution center for BMW cars -- by designing car delivery procedures in such a way that the handover became a premium experience for the new car owner.
7. NTT Data's Parent Company Bought Dimension Data In 2010
NTT Data parent company NTT Corp. announced in July 2010 that it would be purchasing systems integration giant Dimension Data -- now No. 10 on the CRN 2015 Solution Provider 500 -- for $3.2 billion.
Dimension Data -- along with NTT Communications -- is part of NTT's data center network group, while NTT Data is part of NTT's software group.
Nonetheless, Dimension Data Americas CEO Mark Slaga told CRN in April 2014 that there are actually many situations where NTT Communications, NTT Data and Dimension Data work together to serve a client.
"We've got a lot of clients who are bringing together all three parts of the family," Slaga said. "That's actually been a part of our success."
6. NTT Data's North American Operations Are Small But Growing
Roughly 11.6 percent -- or $1.55 billion -- of NTT's sales came from North America in the company's most recent fiscal year.
NTT Data's North American business was established as a standalone unit in 2012 focused on systems integration, application services, infrastructure outsourcing, business process outsourcing and consulting.
NTT Data has 20 offices in the United States -- four each in California and New York, two each in Illinois, Kentucky and Texas, and one each in Florida, Maryland, New Jersey, Oregon, Virginia and Washington. The company also has three offices in Canada, one in U.S. territory Puerto Rico and one in Costa Rica.
Across both North and Latin America, NTT Data has bases in 57 cities and employs roughly 13,000.
5. Governments Trust NTT Data With Everything From Customs To Charging Cars
NTT Data has become a preferred IT provider for governments, thanks to success in Japan with systems for trade procedure and customs clearance.
Based on that, the Vietnamese government ordered similar systems from NTT Data in 2012 and the Myanmar government selected NTT in November 2014.
NTT Data has optimized a public transport ticketing system for the state government of Victoria, Australia, and developed user-friendly and ubiquitous car-charging infrastructure for Austria's Federal Ministry for Transport, Innovation and Technology.
Closer to home, NTT Data worked with the Texas Department of Transportation on IT modernization and the city of Chicago on streamlining the property transaction process.
4. NTT Data Has Nearly Quadrupled The Size Of Its Workforce In The Past Decade
NTT Data's head count has soared in recent years, as the company grew from fewer than 20,000 employees in 2008 to 76,642 employees today. Much of that workforce growth has come outside Japan, with NTT's overseas workforce soaring from just 23,900 employees in 2011 to 43,781 today.
That has been accompanied by growth in NTT Data's net sales, which have nearly doubled, from $7.05 billion in 2005 to $14 billion today, as well as the company's total assets, which have also nearly doubled, from $8.1 billion in 2005 to $16.06 billion today.
3. NTT Data Acquired 4 North American Firms Before The Dell Deal
Much of that sales and head count growth stems from the nine mergers and acquisitions NTT Data has carried out since 2006 to expand the company beyond Japan.
"It was clear that the growth of the domestic IT services market would decelerate going forward," Toshio Iwamoto, NTT Data's president and CEO, wrote in August. "Given the rapid global expansion of clients, it was only natural for management to decide to drive our overseas business."
NTT's recent North American acquisitions include: Carlisle & Gallagher, a 1,000-person boutique consulting firm based in Charlotte, N.C.; Optimal Solutions Integration, an Irving, Texas-based SAP service provider; Keane Inc., a Boston-based IT services provider; and Princeton, N.J.-based IT services company Intelligroup.
2. NTT Data Is Digitizing The Vatican Apostolic Library
NTT Data signed a four-year agreement with the Vatican Apostolic Library in March 2014 to digitize 3,000 of the library's collection of 80,000 manuscripts.
This deal was particularly unusual since the Vatican had very little experience dealing with private sector companies that need to be paid; most of its goods and services had been provided on a volunteer basis.
NTT Data suggested the Vatican create a foundation to solicit donations from sponsors in conjunction with the release of archives, and then use those funds to cover NTT Data's business expenses.
NTT Data also helped the Vatican set up a project team with expertise in legal affairs, finance, public relations, intellectual property and risk management.
1. NTT Data Wants To Have Half Its Sales Outside Japan By 2020
NTT Data has grown its non-Japanese sales from virtually nothing a decade to nearly 30 percent today, but company president and CEO Toshio Iwamoto said NTT can't call itself a global company if 70 percent of its sales are still inside Japan.
"Given our current presence in the global market, it is not easy to get major multinational companies to come to us for proposals," Iwamoto said in August.
NTT Data has therefore set the goal of raising overseas sales to roughly 50 percent of its total sales by 2020. NTT Data hopes large-scale systems operations and maintenance projects around verticals such as automobiles will help the company get there.