NTT DATA Corporation (9613.T) Bundle
From its start as a Nippon Telegraph and Telephone subsidiary on May 23, 1988 to a global IT powerhouse, NTT DATA's evolution - including a 1998 rebrand, the transformative $3 billion acquisition of Dell Services in 2016, the 2022 merger that helped create an organization with roughly $30 billion in revenue, a 2023 reorganization, and a corporate logo update announced May 9, 2025 (effective July 1, 2025) - sets the stage for a deep look at how the company is structured and monetized; currently partially owned by NTT, Inc. with a 54.19% stake and facing a May-June 2025 tender offer priced at JPY 4,000 per share to acquire the remaining ~592.8 million shares, NTT DATA combines consulting, industry solutions, IT modernization, managed services, and a partner ecosystem to serve 75% of the Fortune Global 100, operate delivery centers and innovation labs across more than 50 countries while serving clients in more than 80 countries, employ about 140,000 professionals, generate roughly $18 billion of revenue outside Japan, invest over $3.6 billion annually in R&D, and monetize through a diversified mix of consulting, application and digital services, infrastructure and cloud offerings, BPO, systems integration, and global data centers to pursue centralized governance, expanded investment in AI, data centers, and digital engineering post-acquisition
NTT DATA Corporation (9613.T): Intro
NTT DATA Corporation (9613.T) is a global IT services and consulting company founded on May 23, 1988 as a subsidiary of Nippon Telegraph and Telephone (NTT). It has grown from a Japan-focused systems integrator into a multinational provider of consulting, application services, cloud, and infrastructure managed services.- Founded: May 23, 1988 (as NTT Data Communications Corporation; rebranded to NTT DATA Corporation in 1998).
- Headquarters: Tokyo, Japan.
- Parent / Majority owner: Nippon Telegraph and Telephone Corporation (NTT) - NTT remains the controlling shareholder.
- Global footprint: operations across Japan, the Americas, EMEA and Asia Pacific; workforce in the low-to-mid hundreds of thousands (global scale after major mergers: approx. 120,000-150,000 employees).
- 1988 - Established as an NTT subsidiary to provide IT services to corporate and public-sector clients.
- 1998 - Rebranded from NTT Data Communications Corporation to NTT DATA Corporation to reflect broader service offerings.
- 2016 - Acquired Dell Services for $3.0 billion, adding significant IT outsourcing, infrastructure and cloud migration capabilities and expanding presence in North America.
- 2022 - NTT DATA and NTT Ltd. merged their international businesses to form NTT DATA, Inc., creating a combined IT services entity with roughly $30 billion in annual revenue.
- 2023 - Underwent reorganization into a holding company, domestic business companies and international subsidiaries to streamline governance and accelerate strategic growth.
- 2025 - Announced a corporate logo update on May 9, 2025, effective July 1, 2025, to unify branding across domestic and international markets.
- Mission: to enable clients' digital transformation by combining deep industry knowledge with IT and consulting expertise.
- Strategic priorities: cloud migration & modernization, application services, intelligent automation, digital engineering, and industry-specific solutions (finance, healthcare, public sector, manufacturing, telecom).
- Positioning: one of the largest Japan-headquartered global IT services firms and a top-tier integrator following the Dell Services acquisition and the 2022 international consolidation.
- Consulting & digital transformation: strategy, design and implementation of digital initiatives.
- Application services & engineering: development, modernization, maintenance and testing of enterprise applications.
- Cloud & infrastructure services: public/private cloud migration, managed infrastructure, data centers and edge services.
- Business process outsourcing (BPO) and industry solutions: verticalized platforms and managed services for financial services, healthcare, manufacturing, telecom and public sector.
- Intelligent automation & analytics: AI, RPA, data platforms and analytics to drive operational efficiencies and business insights.
- Project-based consulting and systems integration fees for transformation programs.
- Long-term managed services and outsourcing contracts (recurring revenue streams for infrastructure and application management).
- Cloud professional services and managed cloud offerings (migration, optimization, operations).
- Software and IP/licensing revenue from proprietary platforms and industry solutions.
- Maintenance, support and transaction-based fees tied to large enterprise and public-sector relationships.
| Metric | Representative value |
|---|---|
| Combined annual revenue (post-2022 international merger) | Approximately $30 billion |
| Price paid for Dell Services (2016) | $3.0 billion |
| Global employee base (approx.) | ~120,000-150,000 employees |
| Founded | May 23, 1988 |
| Majority owner | Nippon Telegraph and Telephone Corporation (NTT) - controlling stake |
- Competes with global systems integrators and IT service majors on large-scale transformation deals, managed services and cloud migrations.
- Distinct advantages: strong Japanese market leadership, broad global delivery network, scale from the Dell Services acquisition and the 2022 consolidation, and close affiliation with NTT group assets.
NTT DATA Corporation (9613.T): History
NTT DATA Corporation (9613.T) traces its roots to the data-communications arm of Nippon Telegraph and Telephone (NTT) and has grown into a global IT services and consulting group, expanding through acquisitions across Japan, Europe, North America and Asia. Historically focused on system integration, outsourcing and managed services, the company evolved into digital engineering, cloud, and AI-driven solutions as client demand shifted.
- Founded as part of NTT's information systems divisions; later corporatized and listed on the Tokyo Stock Exchange.
- Expanded by acquiring regional systems integrators and consulting firms to build a global delivery footprint.
- Transitioned emphasis toward cloud migration, digital transformation and AI services in the 2010s-2020s.
| Item | Detail |
|---|---|
| Ticker | 9613.T |
| Major shareholder | NTT, Inc. (54.19% stake) |
| Tender offer (May-Jun 2025) | Price: JPY 4,000 per share; Period: May 9 - June 19, 2025; Target: 592.8 million outstanding shares |
| Acquisition goal | Take NTT DATA private as a wholly owned subsidiary of NTT to simplify governance and centralize decision-making |
| Post-acquisition focus | Increased investment in AI services, data centers and digital engineering |
| Financing | Initial bridge loans, planned transition to long-term capital to preserve financial soundness |
Ownership Structure and Strategic Rationale
- NTT holds 54.19% of NTT DATA, making it the controlling shareholder prior to the tender offer.
- NTT's May 2025 tender offer (JPY 4,000/share) targeted the remaining ~592.8 million shares to achieve 100% ownership.
- Stated objectives: simplify group governance, improve capital efficiency, accelerate integrated group investments (AI, cloud, data centers) and centralize strategic decisions.
How NTT DATA Makes Money - Business Model and Revenue Streams
- Systems integration and application development: custom software, legacy modernization, platform builds.
- Managed services and outsourcing: IT operations, cloud-managed services, infrastructure management.
- Consulting and digital transformation: strategy, UX/design, business process transformation.
- Cloud, data center and network services: colocation, hybrid cloud solutions, connectivity partnerships.
- New growth areas: AI solutions, data engineering, IoT platforms, cybersecurity services.
| Revenue driver | Typical pricing/contract type | Margin profile |
|---|---|---|
| Project-based SI & development | Fixed-price or time-and-materials contracts | Moderate; variable by project complexity |
| Managed services / outsourcing | Recurring multi-year contracts | Stable; higher predictability |
| Cloud & data center services | Usage-based and subscription | Recurring, scalable margins |
| Consulting & digital | Time-and-materials / value-based fees | Higher margins on specialized work |
Financial and Operational Considerations (deal-related)
- Tender offer price: JPY 4,000 per share - total cash required equals JPY 4,000 × number of shares tendered (targeting 592.8 million shares not already held).
- Financing pathway: use of bridge loans initially, with replacement by long-term capital after closing to retain balance-sheet strength and credit metrics.
- Expected outcomes: streamlined capital allocation across NTT group, faster decision cycles for investments in AI, data centers and digital engineering.
NTT DATA Corporation: History, Ownership, Mission, How It Works & Makes Money
NTT DATA Corporation (9613.T): Ownership Structure
NTT DATA Corporation (9613.T) focuses on helping clients transform through consulting, industry solutions, business process services, IT modernization, and managed services. The company combines global scale with local client attention, serving clients in over 70 countries and emphasizing sustainable growth, technological innovation, and strategic partnerships with major cloud and technology vendors.- Mission: Help clients transform and operate more effectively and sustainably through end-to-end digital and industry solutions.
- Values: Client-centric long-term commitment, innovation, sustainability, and inclusive workplace culture promoting diversity, equity, and belonging.
- People & Reach: Over 140,000 employees serving clients in 70+ countries (global delivery model plus local account teams).
- Recognition: Designated a Global Top Employer by the Top Employers Institute and Top Employer across Asia Pacific, Europe, Latin America, and North America.
- R&D Investment: Invests more than $3.6 billion annually in R&D to accelerate digital transformation and sustainable technologies.
| Metric | Figure / Notes |
|---|---|
| Global presence | 70+ countries |
| Employees | ~140,000+ |
| Annual R&D investment | $3.6 billion (approx.) |
| Major shareholder | Nippon Telegraph and Telephone Corporation (NTT) - majority ownership (~54%) |
| Business model | Consulting, systems integration, cloud & managed services, BPO, industry platforms |
- Consulting & Systems Integration - advisory, digital transformation, application development and modernization for enterprise clients.
- Cloud & Infrastructure Services - cloud migration, multi-cloud management, and infrastructure operations via partnerships with major cloud providers.
- Managed Services & Outsourcing - long-term managed IT services and business process outsourcing (BPO) contracts generating recurring revenue.
- Industry Solutions & Platforms - sector-specific solutions (financial services, healthcare, manufacturing, public sector) and software/platform licensing.
- Strategic M&A & Partnerships - acquisitions and alliances expand capabilities, drive cross-sell and capture large enterprise deals.
NTT DATA Corporation (9613.T): Mission and Values
NTT DATA Corporation (9613.T) positions itself as a global IT services and consulting leader focused on helping clients transform and run mission-critical business systems and infrastructure. The company's stated mission centers on creating value through innovation, trusted relationships, and long-term client partnerships, guided by corporate values emphasizing client-centricity, integrity, collaboration, and sustainability. How It Works NTT DATA operates a global delivery model combining regional hubs, local client engagement, and centralized delivery centers and innovation labs. The firm maintains a presence in more than 50 countries across North America, Europe, Asia‑Pacific, and Latin America, with key regional hubs in the United States, Germany, India, and Brazil. This geographic footprint enables nearshore, offshore, and onshore delivery mixes tailored to client requirements.- Service portfolio: business & technology consulting, data & AI, industry solutions, development/implementation/management of applications, infrastructure, and connectivity.
- Global operations: delivery centers, offshore/nearshore teams, and innovation labs in multiple countries to accelerate development and reduce time‑to‑market.
- Client approach: client‑centric design‑build‑manage model-advisory to managed services-covering cloud, data analytics, cybersecurity, and ERP implementations.
- Consulting & transformation: strategic advisory and program leadership billed as projects or retainers.
- Systems integration & implementation: large ERP, CRM, and sector-specific deployments (banking, healthcare, public sector).
- Managed services & outsourcing: recurring revenue from application management, infra operations, and cloud managed services.
- Data & AI solutions: licensing, platform engineering, and ongoing analytics operations.
- Partner ecosystem monetization: joint solutions, reseller/ISV agreements, and revenue share with cloud hyperscalers and niche tech vendors.
- Innovation labs: prototypes, PoCs, and industry accelerators to de‑risk client projects and scale reusable IP.
- Delivery centers: staffed across India, Eastern Europe, Latin America, and Asia to combine cost efficiency with local industry expertise.
- Partnerships: strategic alliances with hyperscalers and ISVs to deliver cloud transformations and SaaS integrations.
| Metric | Value (approx.) |
|---|---|
| Countries of operation | 50+ |
| Employees (global) | ~140,000 |
| Annual revenue (fiscal latest) | ~¥2.4 trillion (~US$16-18 billion) |
| Operating income (fiscal latest) | ~¥140 billion (~US$1.0-1.2 billion) |
| Primary service mix | Consulting, Systems Integration, Managed Services, Cloud & Data/AI |
- Recurring managed services and outsourcing: provide predictable, long‑term cash flow and higher lifetime client value.
- Large systems integration contracts: higher near‑term revenue with variable margins depending on scope and delivery efficiency.
- Productized industry solutions and IP: improve margin profile by scaling prebuilt accelerators and platforms.
- Partner and cloud co‑sell arrangements: drive larger transformational deals and access to shared go‑to‑market motions.
- Geographic delivery leverage: lower-cost delivery centers in India and Eastern Europe reduce incremental delivery costs and expand capacity.
- Margin pressure from competitive pricing and commoditization of some services (infrastructure, basic application maintenance).
- Talent retention: global competition for cloud, AI and cybersecurity skills affects wage inflation and utilization rates.
- Execution risk on large transformations: fixed‑price SI projects can be margin volatile if scope or complexity is underestimated.
- Currency and regional macro exposure across multiple markets.
NTT DATA Corporation (9613.T): How It Works
NTT DATA Corporation (9613.T) operates as a global IT services, consulting, and digital transformation company that monetizes expertise, scale, and infrastructure across consulting, engineering, managed services, and platform offerings. Core revenue drivers combine time-and-materials and outcome-based engagements, recurring managed services, licensing and platform fees, and infrastructure consumption.- Service-led consulting and systems integration: large-scale transformation programs, custom application development, ERP/CRM implementations, and industry-specific solutions billed as project fees and long-term contracts.
- Managed services and BPO: recurring contracts for application management, IT operations, helpdesk, and business process outsourcing generating stable, predictable revenue.
- Cloud, edge and infrastructure services: hosting, private/public cloud migrations, co-location, and consumption-based infrastructure billing from global data centers.
- Digital & AI platforms: data, AI, analytics, and SaaS-like platform subscriptions plus professional services for deployment and customization.
- Partner and ecosystem monetization: jointly developed solutions, referral fees, reseller agreements, and implementation services with hyperscalers and ISVs.
| Metric | Value |
|---|---|
| Reported global revenue (approx.) | $30 billion |
| Revenue generated outside Japan | $18 billion |
| Employees | ~140,000 professionals |
| Geographic footprint | Operations in >80 countries |
| Client penetration | Serves ~75% of the Fortune Global 100 |
- Project and consulting fees: high-margin advisory and transformation work priced per engagement or milestone.
- Recurring contracts: multi-year application management, infrastructure outsourcing, and BPO contracts that stabilize cash flow and enable margin expansion through scale.
- Usage and subscription: cloud consumption, managed platform fees, and SaaS subscriptions that scale with client usage.
- Value-based pricing: outcome- or performance-linked contracts in digital transformation and industry solutions, aligning NTT DATA incentives with client KPIs.
- Partner-led revenue: co-sell and co-delivery with hyperscalers (e.g., AWS, Azure, Google Cloud), major enterprise software vendors, and startups-driving both license and services income.
- Industry depth: sector-specific IP (finance, healthcare, telco, manufacturing, public sector) enables premium pricing for compliance-sensitive and mission-critical initiatives.
- Scale and global delivery model: 140,000 staff across >80 countries deliver lower delivery cost and 24/7 operations, converting global contracts into profitable long-term engagements.
- Integrated offerings: bundling consulting, systems integration, managed services, and cloud hosting increases wallet share per client and drives cross-sell.
- Data & AI infrastructure leadership: providing the underlying compute, storage, networking and managed AI stacks positions NTT DATA as both a services and infrastructure vendor-capturing infrastructure spend and high-value AI services.
- Hyperscaler alliances - joint go-to-market and managed services for cloud migrations and native cloud apps.
- ISV partnerships - implementation and support for major enterprise software platforms.
- Startup & innovation network - accelerators and co-development to integrate emerging tech (AI/ML, edge, IoT) into commercial offerings.
NTT DATA Corporation (9613.T): How It Makes Money
NTT DATA generates revenue by selling integrated IT and business services across industries, leveraging scale, global delivery, and strategic partnerships. Key facts and figures:- Annual revenue: approx. $30 billion
- Revenue outside Japan: approx. $18 billion
- Employees: ~140,000 professionals
- Geographic footprint: services delivered in more than 80 countries; presence in over 70 countries
- Employer recognition: Global Top Employer and Top Employer in Asia Pacific, Europe, Latin America, and North America
- Core service lines that drive revenue:
- Business & technology consulting
- Application development, implementation & management
- Infrastructure & connectivity (including cloud, network services)
- Data & artificial intelligence solutions
- Industry-specific solutions (finance, healthcare, public sector, manufacturing, etc.)
- Partner ecosystem:
- Collaborations with major technology developers (cloud hyperscalers, SaaS vendors, platform providers)
- Co-innovation with startups to embed emerging tech (AI/ML, edge, IoT) into client solutions
- Positioning: one of the leading global providers of digital and AI infrastructure, combining services and managed platforms to capture recurring revenue streams
| Metric | Value |
|---|---|
| Total revenue (approx.) | $30,000,000,000 |
| Revenue outside Japan | $18,000,000,000 |
| Revenue inside Japan | $12,000,000,000 |
| Employees | 140,000 |
| Countries served | More than 80 |
| Recognitions | Global Top Employer; Top Employer across major regions |
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