NTT Data

NTT Data, the IT services subsidiary of Nippon Telegraph and Telephone Corporation (NTT Group), had grown into a major global IT services player but operated as a fragmented collection of separately managed businesses. By 2022, NTT Group's IT services were split across multiple entities: NTT Data Corporation (primarily Japan-focused, listed on TSE), NTT Ltd. (international infrastructure and managed services), and NTT Data Services (the former Dell Services, focused on North America). Each entity maintained its own delivery centers, sales organizations, operating processes, and management structures across 80+ countries. The overseas business alone generated approximately ¥2 trillion in combined revenue but operated with an EBITA margin well below the 10% target — estimated at approximately 6-7%. The fragmented structure meant duplicated offshore centers in India, overlapping capabilities in the same geographies, inconsistent delivery methodologies requiring redundant training, and limited resource sharing across formerly independent business units. NTT Group's total IT services headcount exceeded 190,000 employees, but the lack of unified operations prevented the scale economies that a $30 billion business should deliver.

In May 2022, NTT Group announced a major realignment: consolidating all overseas IT services under NTT Data. The execution followed a phased approach:

• Entity consolidation (October 2022): NTT and NTT Data established NTT DATA, Inc. as a new overseas operating company, jointly owned 55% by NTT Data and 45% by NTT. This combined the international businesses of NTT Ltd. and NTT Data's overseas operations into a single entity with approximately $18 billion in international revenue and 140,000 professionals.
• Brand unification (July 2023): All international operations formally launched under the unified NTT DATA brand, replacing the patchwork of legacy brand identities (NTT Ltd., Dimension Data, NTT Data Services, Everis).
• Delivery center rationalization: Began consolidating overlapping delivery centers — particularly in India, where legacy entities from NTT Data, NTT Ltd. (Dimension Data), and NTT Data Services (Dell Services) all maintained separate facilities in the same cities.
• Synergy program: Targeted ¥30 billion (~$200 million) in annual synergies, split approximately evenly between cost reductions and top-line growth. Allocated ¥30 billion in one-time integration spending to fund IT system integration, organizational restructuring, and process harmonization across the overseas business.