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NTT DATA - Digital Testing

Vendor Analysis

by Dominique Raviart

published on Sep 22, 2017

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Report Overview:

This NelsonHall vendor assessment analyzes NTT DATA's capabilities and offerings in digital testing services.

Who is this Report for:

NelsonHall’s Software Testing Vendor Assessment for NTT DATA is a comprehensive assessment of NTT DATA’s digital testing offerings and capabilities designed for:

  • Sourcing managers monitoring the capabilities of existing suppliers of IT services and identifying vendor suitability for software testing services
  • Vendor marketing, sales and business managers looking to benchmark themselves against their peers
  • Financial analysts and investors specializing in the software testing sector.

Scope of this Report:

The report provides a comprehensive and objective analysis of NTT DATA’s digital testing offerings, capabilities, and market and financial strength, including:

  • Analysis of the company’s offerings and key service components
  • Revenue estimates
  • Identification of the company’s strategy, emphasis and new developments
  • Analysis of the profile of the company’s customer base including the company’s targeting strategy and examples of current contracts
  • Analysis of the company’s strengths, weaknesses and outlook.

Key Findings & Highlights:

With the acquisition of Dell Services in November 2016, NTT DATA has gained a software testing practice with (NelsonHall estimated) CY 2015 revenues of ~$200m, and a headcount of 2.7k.

Dell Services strengthened the global delivery network of NTT DATA, bringing 1.7k software testers in India and 400 in the U.S. It also brought several testing accelerators (e.g. intelliPERF on performance testing) and a focus on DevOps.

NTT DATA had 2016 software testing revenues of ~$1,100m and a NelsonHall estimated 15k software testers in total across its geographies as of H1 2017, and NelsonHall estimates NTT DATA’s digital testing services revenues to be ~$200m in 2016 (excluding agile testing revenues).

After the Dell Services acquisition, NTT DATA made an organizational change, removing P&L responsibility for its software testing practices, and put the practices and communities of testers under the umbrella of its Digital Application and Information Management division. With this organizational change and a geography based structure, NTT DATA wants to drive client intimacy and reactiveness. It is also aiming to drive the verticalization of its various software testing offerings.

NTT DATA is aiming to drive collaboration across geographical testing communities: as part of its NTT DATA Global One program, it promotes common methods and tools for solutioning, accelerators, and platforms.

NTT DATA is aligning its service portfolio towards specialized services, vertical offerings, and accelerators, e.g.:

  • Digital testing
  • Agile and DevOps
  • IP: platforms and accelerators
  • Vertical-specific offerings: including around financial services (core banking, and insurance) and healthcare (payer and provider)
  • COTS: SAP, Oracle, and Salesforce.com.

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