NTT DATA Global IT Evolution | Generated by AI
Question: Provide a comprehensive introduction to the history of NTT DATA (IT services company).
Answer:
NTT DATA is one of the world’s leading IT services and consulting companies, specializing in business and technology services, system integration, outsourcing, and digital transformation solutions. It is a major subsidiary of the NTT Group and ranks among the top global IT services providers.
Origins and Early Development
The roots of NTT DATA trace back to Japan’s telecommunications history, beginning with the first telegraph service in 1870. The direct foundation came in 1967, when the Nippon Telegraph and Telephone Public Corporation (predecessor to today’s NTT) established its Data Communications Division. This unit focused on emerging data communication technologies, merging telecommunications with early computing and information processing to support Japan’s growing IT infrastructure needs.
In 1985, the Nippon Telegraph and Telephone Public Corporation was privatized and became Nippon Telegraph and Telephone Corporation (NTT), leading to major restructuring. As part of this, the Data Communications Division was spun off into an independent entity.
Official Founding and Early Years
NTT DATA was formally established on May 23, 1988, as NTT Data Communications Systems Corporation, a wholly owned subsidiary of NTT. The spin-off aimed to focus on creating value through information technology and to operate more flexibly in the rapidly evolving IT sector.
- In the 1990s, the company began international expansion, establishing its first overseas branch in the United States in 1990.
- It went public with a listing on the Second Section of the Tokyo Stock Exchange in 1995, followed by the First Section in 1996.
- In 1998, the company simplified its name to NTT DATA Corporation.
During this period, NTT DATA played key roles in developing major social systems in Japan, including financial, public administration, and transportation IT infrastructures.
Global Expansion and Major Acquisitions (2000s–2010s)
From the late 1990s onward, NTT DATA pursued aggressive global growth through organic expansion and strategic acquisitions:
- 2010: Acquired Keane, Inc. (a major U.S. IT services firm) for over $1.23 billion, significantly boosting its North American presence.
- Also in 2010: NTT Group acquired Dimension Data, which later integrated into NTT DATA’s global operations.
- 2016: Acquired Dell Services (formerly Perot Systems) for approximately $3 billion, further strengthening its global capabilities.
- Other notable acquisitions included companies specializing in SAP solutions, consulting, and regional IT services in Europe, Asia, and elsewhere.
These moves transformed NTT DATA from a primarily Japan-focused player into a truly global IT services provider operating in dozens of countries.
Recent Reorganization and Current Status
In July 2023, NTT DATA underwent a major structural change, shifting to a holding company model. The entity became NTT DATA Group Corporation as the holding company, overseeing:
- Domestic operations (primarily in Japan)
- Global operations through a unified NTT DATA, Inc. (formed to consolidate overseas businesses)
This reorganization aimed to streamline management, accelerate international growth, and create a more cohesive global brand. By the mid-2020s, the combined global operations were generating estimated revenues around $30 billion annually.
As of 2026, NTT DATA Group employs approximately 190,000–200,000 people across more than 70 countries and regions. It serves a large portion of the Fortune Global 100 companies and continues to invest heavily in innovation (supported by NTT Group’s multi-billion-dollar R&D budget), focusing on digital transformation, cloud, AI, cybersecurity, and emerging technologies.
NTT DATA’s evolution reflects Japan’s transition from state-controlled telecommunications to a privatized, globally competitive IT powerhouse, with a strong emphasis on reliable, large-scale system integration and societal infrastructure support.
References:
- NTT Data - Wikipedia
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[History About NTT](https://group.ntt/en/group/history) -
[About Us NTT DATA Group](https://www.nttdata.com/global/en/about-us) - NTT DATA Group Corporate Profile
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[FAQ NTT DATA Group](https://www.nttdata.com/global/en/investors/faq)