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NTT bringing comms, security and Dimension Data together
The Japanese based firm hopes that by bringing its various operations under one roof it can pitch harder for digital transformation business
NTT is hoping that stronger ties between its business operations will place it in a stronger position when it comes to pitching for digital transformation business.
The firm is looking at bringing its operations under a single holding company providing it with a chance to look for more cross selling opportunities across its communications, security and Dimension Data operations.
By the end of the year the firm will have set up a global holding corporation, NTT Inc with Jun Sawada, current CEO of NTT corporation taking the head role. The entity will have an estimated operating revenue of $38bn.
The holding company will contain NTT Communications, Dimension Data, NTT Data, NTT Security and NTTi3. There then could be further integration with two operations being split to focus on global business and separately the Japanese market.
The only part of the current roster that will be treated differently in the long term is NTT Data, which will remain a publicly traded company and will keep its brand and independent management.
"We’ve seen rapid progress in technology innovation; disruption caused by new business models, and the aggressive expansion of innovative competitors. These factors have led to clients’ increasing demand for digital transformation. We believe it’s an opportunity for us to create new value and increase our presence in the global market," stated the firm.
"By becoming a part of the new global holding company, NTT DATA will have further possibilities for the business growth than ever before. It will become easier for NTT DATA to engage in business collaboration under the new global holding company with other NTT Group companies as well as to benefit from the outputs of NTT Group's global R&D," it added.
NTT acquired Dimension Data back in 2010 for $3.2bn and has seen the firm grow into one of a handful of global solution providers.
At the same time as making sharing the plans around the business changes NTT indicated that it is increasing its R&D spending and setting up a global innovation fund to make sure it is evolving the business by investing in digital technology.