NTT Data

NTT Data, a subsidiary of Japan's NTT Group, had built a strong position in Japanese IT services and systems integration but lagged global competitors in international scale. Before the 2022 consolidation, NTT Data's international business generated approximately $8 billion in annual revenue — significant but well behind Accenture, TCS, and Infosys in global IT services. Meanwhile, NTT Ltd. (another NTT Group subsidiary) operated a separate $10 billion business focused on data centers, managed infrastructure, and global network services with approximately 38,000 employees. The two NTT entities competed for some of the same clients with overlapping but complementary capabilities: NTT Data excelled in consulting, application development, and systems integration, while NTT Ltd. had strengths in infrastructure, data centers, and managed services. The fragmentation diluted NTT Group's competitive position against integrated global IT services firms.

On October 6, 2022, NTT Corporation and NTT Data Corporation finalized the creation of NTT DATA, Inc. — formally merging their international businesses:

• Merger execution: NTT Ltd. (approximately $10 billion revenue, 38,000 employees) was merged into NTT Data's international operations, more than doubling the international business from approximately $8 billion to $18 billion in revenue. NTT DATA, Inc. was structured as the international arm, co-owned by NTT Data (55%) and NTT (45%).
• Capability integration: Combined NTT Data's consulting, application development, and digital transformation capabilities with NTT Ltd.'s strengths in data center operations, global networks, edge computing, and managed infrastructure services. This created an end-to-end offering spanning strategy through implementation through managed services.
• Service portfolio expansion: The combined entity could offer clients integrated solutions that neither company could deliver independently — for example, building a cloud migration strategy (NTT Data capability) and then operating the target infrastructure (NTT Ltd. capability) under a single contract.
• Organizational restructuring (April 2023): Reorganized the Enterprise Segment to implement matrix management combining expertise in consultation, payment, and technology — further integrating the merged capabilities.
• Acquisition strategy continuation: Continued selective acquisitions including Vectorform (Detroit-based digital transformation and innovation company, acquired March 2022) to add specialized digital capabilities.