NTT Group to merge IT services companies in latest global reorganisation

The global giant has made yet another global restructure in a move it calls ‘necessary’ to drive services growth

NTT Group announced it is combining its overseas businesses operated by NTT Data, NTT Inc. and NTT Ltd., respectively, and will develop their business as a unified group of companies.

NTT Data will combine its system integration capabilities in vertical industry expertise, digital consulting, application development, and managed services capabilities with NTT Ltd.'s 'Edge to Cloud' service operation offering, mainly in the field of datacentres, networks and managed services.

The group claims its latest reorganisation will enable it to integrate IT services and connectivity and respond to increasingly complex and diverse client needs on a global level by centrally developing a service portfolio necessary for digital transformation.

Until now, NTT Data has expanded the scale of its overseas business largely through M&A, in addition to business expansion within Japan.

The group stated it believes the merger is "necessary" to accelerate collaboration among NTT group companies and to strengthen its business competitiveness.

It added the move will contribute to the growth of its customers' businesses to become a "truly Trusted Global Innovator" that supports social infrastructure for the long term.

"As we move toward the realisation of a society in which various goods and people are connected to provide new value, technologies related to connectivity, such as "Edge to Cloud", are becoming increasingly important," NTT Data said in a statement.

"Further, there are growing expectations for a data-driven society through secure collection and analysis of information from goods and human behaviour.

"Equally as significant, the competitive environment surrounding the IT market has also been changing, with companies expanding their service offerings in response to changes in society and technology."

NTT Data also revealed the combined company will work to create new social platforms and innovate services that "transcend" corporate and industry boundaries in the medium- to long-term.

NTT companies have shifted structure and parent company multiple times over the last decade.