NTT confirms plans to merge Dimension Data with other subsidiaries
The Nippon Telegraph and Telephone Corporation (NTT Corporation) has confirmed its plans to merge Dimension Data and several of its other subsidiaries into one group operating under the name NTT Inc. in 2019.
The group said that the new group will be established to keep up with a quickly-evolving global market, and will meet client demand for transformation.
“We’ve seen rapid progress in technology innovation; disruption caused by new business models, and the aggressive expansion of innovative competitors. These factors have led to clients’ increasing demand for digital transformation. We believe it’s an opportunity for us to create new value and increase our presence in the global market,” the group said.
The new holding company will established by the third quarter of the group’s fiscal year, ending March 2019. It will be called NTT Inc., and will be headed by current CEO of NTT Corporation, Jun Sawada.
Estimated operating revenue of NTT Inc. is approximately US$38 billion with US$20 billion already coming from outside Japan (consolidated figures, based on the fiscal year ending March 31, 2018).
By the third quarter of the fiscal year ending March 31, 2019, NTT Communications, Dimension Data, NTT DATA, NTT Security, and NTTi3 will be transferred to NTT, Inc. and will align together under its new leadership, it said.
“While making NTT Group more competitive and profitable, our global governance will also benefit from embracing and integrating our people’s diverse talents, skills, and management experience in global markets. The new structure will leverage their expertise to its maximum potential.
“In addition, by the second quarter of the fiscal year ending March 31, 2020, we’ll consider integrating these businesses – except NTT DATA – into two new businesses. One will look after our global business; the other will cater for our domestic business in Japan,” the group said.
NTT DATA will continue to collaborate with other companies in the group while retaining its present management structure, status as a listed company, management autonomy and brand.
As for Dimension Data in South Africa, the group said that “there are no changes to management or reporting structures for now. It’s business as usual at Group, in region, and in country.
“In Japan, even if the domestic business which is to be defined is integrated, the business will be operated remaining unchanged basically. We’ll share more detail about the steps in this process in due course.
“We’d like to assure all our stakeholders that this integration will be undertaken with the utmost care and consideration to ensure the seamless continuity of our service delivery to our respective and shared clients,” it said.
Read: Dimension Data set to merge with NTT Data and NTT Comm – report
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