NTT DATA Group recently held its virtual consulting day. In May, we reported on the new NTT DATA after its merger with NTT Ltd., the creation of NTT DATA Japan and Inc., and its priorities. At the time, we commented: “NTT DATA Inc. remains a quiet giant whose capabilities are not yet well-known” as NTT DATA’s management discussed how it had embedded its Business Consulting capabilities within the geographies but provided little detail on plans for this part of its portfolio.

However, the recent event provided additional details. Key takeaways were:

• Business Consulting is at scale: it has ~15k consultants across 50 geographical units. NelsonHall estimates it represents 8% of NTT DATA Group’s headcount (including Japan and Inc.). This is in line with the industry rule of thumb. It also compares well with Capgemini’s10k consultants (although we suspect the scope is different)
• Business Consulting is strategic to NTT DATA. As one NTT DATA exec had mentioned some months ago, Business Consulting is part of the solution, and NTT DATA wants to drive a consulting-led approach to its clients
• First created in 1998 in Japan, the first international geography for Business Consulting was the U.S. NTT DATA conducts its Global One initiative to drive coordination, service portfolio consistency, and asset alignment across geographies. The company aims to create an integrated culture and common assets. We asked about asset examples: we suspect most assets are systems integration-related, with much less around consulting so far. NelsonHall will investigate further
• Business Consulting is focusing its portfolio on seven organizational priorities:
  • Business and Industry Strategy
  • Customer Experience
  • Data & AI Strategy
  • Organization & Talent Management
  • Supply Chain
  • Digital Strategy
  • Sustainability
• NTT DATA emphasizes its capabilities in combining domain knowledge with its technological expertise, including GenAI. Sustainability is also a priority and will help the Group reach its $1bn objective in sustainability revenues by FY27
• The organization’s priority verticals globally are BFSI, Automotive, Healthcare & Life Sciences, Consumer Products & Retail, TME, Manufacturing, and Public Sector. Energy & Utilities and Professional Services are the main absentees from this list. Each region may have additional vertical priorities specific to that geography
• One UKI banking client commented that NTT DATA’s Business Consulting fees ‘are sustainable’. The client went on to say how larger and more well-known consulting competitors need to leave the project after the initial consulting phase. With its 2k practitioners, India offers a lower-cost alternative, already representing ~13% of Business Consulting.

The NTT DATA Business Consulting event was intended to be an introduction to the business. The virtual event format had several limitations, including not being able to drill down on the offerings and go beyond the surface.

Surprisingly, Business Consulting did not indicate its strategy and roadmap. No mention of new offerings, although it was clear that GenAI and sustainability are, unsurprisingly, significant priorities. No potential M&A activity was discussed, though we suspect that NTT DATA will look for inorganic growth to expand its capabilities in specific geographies.

The message from NTT DATA Business Consulting’s business was straightforward: ‘We are part of NTT DATA, we are at scale, and we can play an essential role in our clients’ transformation’.