NTT DATA Group

Basic Information

Stock Code
9613
Industry
Information and Communications
Category Detail
Systems & Software
Prefecture
Tokyo
Establishment Year
May 1988
Listing Year
April 1995
Official Website
https://www.nttdata.com/jp/
TSE Information
TSE Information
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Yahoo! Finance
Other Companies
NS Solutions, TIS, Shin-Etsu Chemical, Nomura Research Institute, Simplex Holdings, OBIC, Otsuka Corporation, Dentsu Soken, Nippon Steel, Toyoda Automatic Loom Works, Sony Group, Mitsubishi Heavy Industries, Toyota Motor Corporation, Nintendo, BIPROGY, Mitsubishi Corporation, Mitsubishi UFJ Financial Group, NTT, DTS, SCSK

Overview

The NTT DATA Group is a leading representative of Japan's information and communications industry, founded in 1988, with numerous domestic and international subsidiaries, and boasts the world's 6th largest IT services market share as a system integrator.

Current Situation

In the fiscal year ended March 2024, the NTT DATA Group maintained solid performance with consolidated net sales of approximately 4.3673 trillion yen and operating profit of approximately 309.5 billion yen, accelerating global expansion with 599 subsidiaries worldwide. Domestically, it excels in system integration for public, financial, and corporate clients, particularly supporting the IT transformation of social infrastructure such as the national interbank data communications system and social security systems. Overseas, through aggressive M&A strategies, it has expanded bases primarily in North America, Europe, and Asia, solidifying its position as a global IT services provider, while focusing on AI, cloud, and DX solutions. From environmental, social, and governance perspectives, it advances sustainability management, tackling CO2 reduction and diversity promotion, alongside ongoing mid- to long-term growth investments to enhance corporate value. The 2023 transition to a holding company structure improves management efficiency, while preparing for full subsidiarization by parent company NTT in 2025. Through these efforts, it deploys strategies to establish stable growth foundations amid changing market environments.

Trivia

Interesting Facts

  • Key IT company in the NTT Group.
  • Global expansion with nearly 600 subsidiaries domestically and internationally.
  • IT services company with world's 6th largest market share.
  • Developed the National Interbank Data Communications System (Zengin System).
  • Operates CAFIS credit card settlement network.
  • Shifted to holding company in 2023 to enhance agility.
  • First in Japan to obtain information security management certification.
  • Developed numerous foundational systems in public and financial sectors since founding.
  • Handles national critical infrastructure like Social Insurance Online System.
  • Non-IT firms like Mitsubishi Corporation and Toyota Motor listed as rivals.
  • Provides large-scale operation management via system outsourcing.
  • Elliptical logo since founding symbolizes human wisdom and challenge.
  • Group reorganization separates overseas business units for swift response.
  • Group includes 3D printer-related companies.
  • Past experiences with social issues like patent office bribery scandal and entertainment problems.

Hidden Connections

  • Advances fusion of communications and IT services through technology collaboration with parent NTT.
  • Numerous subsidiaries involved in critical infrastructure for domestic railways and financial institutions.
  • Participates in joint development of core banking systems for many regional banks.
  • Deploys global solutions centered on SAP ERP business.
  • Deep ties across fields like healthcare, public, finance, and manufacturing.
  • Multinational business expansion and talent exchange via overseas acquisitions.
  • Group companies operate environmentally considerate green data centers.
  • Has history of operating blog services, contributing to IT community building.

Future Outlook

Growth Drivers

  • Ongoing expansion of global DX market.
  • Increasing demand for advanced financial and public systems.
  • Practical application and普及 of cloud, AI, and IoT technologies.
  • Enhanced management agility via holding company structure.
  • Rising corporate demands for sustainability対応.
  • Business diversification via M&A in overseas markets.
  • Increasing demand for advanced security services.
  • Promotion of digital shift in manufacturing and logistics.
  • Expansion of consulting services.
  • Competitive strengthening through talent acquisition and development.
  • Deployment of smart cities and public services.
  • Technological innovation in environmental technologies and green ICT.

Strategic Goals

  • Increase overseas sales ratio by more than 30% from current levels.
  • Significantly reduce environmental impact to achieve carbon neutrality.
  • Strengthen collaboration with approximately 800 group companies globally.
  • Enter world's top 5 in AI, cloud, and security fields.
  • Elevate customer satisfaction to industry top level.
  • Achieve over 40% female managerial ratio through diversity promotion.
  • Further enrich training systems for next-generation IT talent.
  • Advance corporate governance and improve transparency.
  • Aim for over 20% of sales from new businesses.
  • Expand social contribution programs to national scale.

Business Segments

Public Systems

Overview
Supports planning, development, and operation of core administrative and public-related systems.
Competitiveness
Abundant track record with public agencies and stable operation capabilities
Customers
  • Government agencies
  • Local governments
  • Public organizations
  • Social insurance agencies
  • Administrative service providers
Products
  • Resident Registry Network System
  • Social Insurance Online System
  • Air Traffic Control System
  • Disaster Emergency Medical Information System
  • NACCS (Cargo Clearance Information Processing System)

Financial Services

Overview
Provides system infrastructure construction and operation for financial institutions.
Competitiveness
Domestic largest-scale experience in financial system construction and operation
Customers
  • Banks
  • Securities firms
  • Insurance companies
  • Credit card companies
  • Payment processing providers
Products
  • National Interbank Data Communications System
  • BANCS Metropolitan Bank Cash Network
  • CAFIS Credit Settlement System
  • Financial ANSER System
  • PayGent Payment Agency Service

Logistics and Manufacturing Systems

Overview
Provides information systems contributing to efficiency in manufacturing and distribution.
Competitiveness
Rich know-how in industry-specific systems
Customers
  • Manufacturers
  • Distributors
  • Transportation companies
  • Supply chain management companies
Products
  • Logistics Management System
  • ERP for Manufacturing
  • Warehouse Management System
  • TradeWaltz SCM Platform

Healthcare and Life Sciences

Overview
Numerous IT solutions specialized for medical and health fields.
Competitiveness
Advanced privacy management and security assurance
Customers
  • Medical institutions
  • Pharmaceutical companies
  • Health insurance associations
  • Nursing care facilities
Products
  • Medical Information System
  • Clinical Trial Support System
  • Health Management Solutions
  • Electronic Medical Records System

Consulting & IT Strategy

Overview
Provides high-value-added IT consulting services.
Competitiveness
Global network and expertise collaboration
Customers
  • Large corporations
  • Government agencies
  • Financial institutions
  • Manufacturers
Products
  • IT Strategy Consulting
  • Digital Transformation Support
  • Business Process Improvement
  • SAP Solutions

Network Services

Overview
Provides advanced communications infrastructure construction and cloud services.
Competitiveness
Synergy effects with parent company NTT
Customers
  • Telecommunications carriers
  • Corporations
  • Public infrastructure
Products
  • Data Communications Network Construction
  • Cloud Infrastructure
  • Security Services

IT Solutions for Manufacturing

Overview
Develops and provides advanced IT systems for manufacturing sites.
Competitiveness
Advanced technological capabilities and industry knowledge
Customers
  • Automotive manufacturers
  • Heavy industry
  • Electronics manufacturers
Products
  • Manufacturing Process Efficiency System
  • IoT Integrated Management System
  • Supply Chain Optimization Tools

Public Transportation and Logistics IT

Overview
Supports IT optimization for public transportation and logistics.
Competitiveness
Proven track record in diverse public sector system construction
Customers
  • Railway companies
  • Bus operators
  • Warehouse operators
Products
  • Railway Operation Management System
  • Logistics Optimization System
  • Transportation Information Services

Education and Training Services

Overview
Deploys education services for IT talent development.
Competitiveness
Training leveraging rich technical know-how
Customers
  • Corporations
  • Educational institutions
  • Government agencies
Products
  • IT Training Programs
  • e-Learning Systems
  • Engineer Development Services

Environment and Energy-Related Systems

Overview
Provides IT solutions addressing environmental issues.
Competitiveness
Utilization of green ICT technologies
Customers
  • Energy companies
  • Environmental businesses
Products
  • Energy Management System
  • Environmental Data Analysis Services

Product Development Support

Overview
Supports efficiency in product development processes.
Competitiveness
Accumulated system development know-how
Customers
  • Manufacturers
  • IT companies
Products
  • Software Development Support Tools
  • System Design Services

Security Solutions

Overview
Provides and operates advanced information security.
Competitiveness
Long track record in corporate security
Customers
  • Corporations
  • Public institutions
  • Financial institutions
Products
  • Information Security Management Services
  • Threat Analysis Tools
  • Security Consulting

Competitive Advantage

Strengths

  • Global IT services network
  • Rich industry track record and reliability
  • Diverse solution lineup
  • Strong support from parent company NTT
  • Advanced system integration technology
  • Broad customer base and partnerships
  • Stability from solid financial foundation
  • Aggressive overseas M&A expansion
  • High risk management capabilities
  • Comprehensive IT consulting strength
  • Continuous investment in cutting-edge technologies
  • Global対応力 with multiple languages and cultures
  • Large-scale project management capabilities
  • Robust talent development system
  • Commitment to sustainable management

Competitive Advantages

  • Brand power as Japan's largest IT services company
  • Advanced technology collaboration as part of NTT Group
  • Extensive global network spanning 59 countries overseas
  • Strong track record in financial and public sector system construction
  • Suite of solutions adaptable to diverse industries
  • Rapid business area expansion via M&A
  • Management efficiency and swift decision-making via holding company structure
  • Innovation promotion leveraging next-generation technologies
  • Structural customer loyalty and abundance of long-term contracts
  • High-quality services backed by strong engineering capabilities
  • Advanced data security management practices
  • Diverse public project experience domestically and internationally
  • Proven cross-border projects by multinational teams
  • Industry-leading financial soundness
  • Advancement of ESG strategies emphasizing social responsibility

Threats

  • Intensifying competition in overseas IT markets
  • Risk of lagging in rapid technological changes
  • Business constraints from strengthened regulations
  • Increasing cybersecurity risks
  • Decline in demand from customer in-house IT development
  • Impact of exchange rate fluctuations on earnings
  • Changes in business environment due to international politics
  • Intensifying competition for talent acquisition and development
  • Reputational risk from contract disputes or scandals
  • Risk of IT investment cuts in economic downturns
  • Risk of delays or failures in large projects
  • Barriers to entry in emerging markets

Innovations

2023: Transition to Holding Company and Group Reorganization

Overview
Shifted to holding company structure to streamline group management, separating NTT DATA and NTT DATA, Inc.
Impact
Achieves faster management decisions and business specialization

2024: Strengthening DX Promotion in Japan and Overseas

Overview
Expanded digital transformation support services utilizing cloud and AI.
Impact
Contributes to business efficiency and new business creation for client companies

2022: Business Expansion via M&A of Overseas IT Service Firms

Overview
Acquired leading IT companies in North America and Europe to strengthen global service base.
Impact
Increases overseas sales and diversifies service areas

2024: Advancing Sustainability Management

Overview
Efforts to improve operational efficiency for reducing environmental impact and strengthen social responsibility fulfillment.
Impact
Improves ESG ratings and sustains corporate value enhancement

2023: Strengthening Payment Networks in Financial Sector

Overview
Advanced core financial networks such as CAFIS and Zengin System.
Impact
Enhances settlement security and transaction speed

2025: Plan to Refresh with New CI Logo

Overview
Transition to new corporate identity unifying brand with parent NTT.
Impact
Refreshes brand image and strengthens unity

Sustainability

  • Promotion of CO2 reduction plans and environmental impact mitigation
  • Workplace improvement through diversity and inclusion advancement
  • Strengthened responsible supply chain management
  • Social contribution activities and local community support
  • Thorough information security and privacy protection
  • Expansion of green data centers
  • Establishment of sustainable procurement policies
  • Enhanced employee health management and safety measures
  • Improved transparency of ESG-related information
  • Implementation of environmental education programs
  • Efficient IT resource utilization and recycling promotion
  • Global collaboration on climate change measures