Key Findings & Highlights:

NTT DATA Communications Systems Corporation was spun off as a separate company from NTT Corporation in 1988, subsequently changing its name to NTT DATA Corporation in 1996. NTT Corporation retains a 54% shareholding in NTT DATA and NTT DATA works jointly with other companies in the NTT Group to deliver services to clients.

NTT DATA's acquisition of Dell Services for $3.06bn closed on 2, November 2016. The two companies had broadly complementary offerings and heritage, with NTT DATA bringing the application experience which Dell Services lacks, and Dell Services expanding NTT DATA’s infrastructure services capability. Dell Services also provided NTT DATA with a broader footprint in the North American market.

Dell Services integrated with NTT DATA’s North American subsidiary, NTT DATA, Inc., which NelsonHall estimates currently accounts for ~26% of NTT DATA's revenues. With the absorption of Dell Services, the newly created organization is now called NTT DATA Services.

In 2012, NTT DATA acquired U.K. based RMA Consulting to expand its U.K. and European based design capabilities. The acquisition brought in ~30 employees in web design and user experience consulting.

In 2013, NTT DATA acquired everis, an IT service consultancy based in Spain. While primarily focused on application services and consulting, everis provided a foundation for NTT DATA to build its southern European UX experience consulting capabilities. In January 2018, everis launched a dedicated design studio called Chazz.

In 2017, NTT DATA's corporate leadership based in Japan decided to integrate the individual regional design organizations that had grown organically and inorganically including NTT DATA Service in U.S., RMA Consulting in the U.K., Chazz in Spain and Latin America, Digital Entity in Germany to standardize its offerings and services for UX design and development globally.

In 2018, it is continuing to expand its design studio network including opening Aquair studio in Tokyo, Japan and Enso - The Space for Creators in Munich, Germany.

NTT DATA reported full calendar year 2017 revenues of ~$18.7bn. NelsonHall estimates that ~2.7% (~$500m) of these revenues are associated with UX design and development services.

NTT DATA has a three-phase approach to delivering UX services. These phases include:

• Empathize: understanding the user experience and analyzing the current technology situation
• Ideate: creating and prototyping the transformed experience
• Make: validating that the solution meets requirements and continue to evolve over time.

NTT DATA has ~100k employees across 50 countries. Of these, NelsonHall estimates that ~17k deliver digital transformation services.

NTT DATA has launched its Digital Experience Studios and is looking to expand its network over the next year. It currently has 11 studios globally across its individual operating groups that house ~2k employees.

NTT DATA has grown its UX design and development capability both organically and inorganically over several years, allowing each unit to operate on its own. Launching an internal initiative over the last year to integrate, standardize and expand the network makes ensures that lessons and assets are shared while maintaining a level of local autonomy to reflect the local culture. Continuing to standardize and grow this network will position NTT DATA well to expand its client footprint going forward.

As part of this greater integration it can also look to better leverage its remote delivery centers for the development and enhancement services to increase cost competitiveness by passing more of the UX development work out of local geographies to lower cost locations. Building these centralized UX development factories frees up local resources to focus on complex and emerging technology solutions and enable the greater reuse of assets and experiences across geographies.