NTT DATA Services is a leading IT services provider and digital business consulting company headquartered in Plano, Texas. The company is a division of NTT DATA Corporation, a top 10 global IT services provider based in Tokyo, Japan. NTT DATA Services partners with clients to navigate and simplify the modern complexities of business and technology, delivering the insights, solutions and outcomes that matter most.
Whether NTT DATA Services is a good company to work for or engage with as a client depends on a variety of factors. In this article, we will examine key aspects of the company’s operations, workplace culture, client relationships, financial performance and more to help determine if NTT DATA Services is considered a good company overall.
Company Overview
NTT DATA Services was founded in 1988 as Perot Systems Corporation before being acquired by NTT DATA in 2011. The company operates in over 50 countries, serving clients across a diverse range of industries including healthcare, financial services, insurance, telecommunications, manufacturing, retail and public sector.
Some key facts and figures about NTT DATA Services:
– Global headquarters: Plano, Texas, USA
– Employees: Over 50,000 worldwide
– Global revenue: $6.6 billion (FY 2021)
– Services: Consulting, IT modernization, next-gen technologies, core industry solutions
– Clients: Over 85% of the Fortune 100 and Fortune 500
As an IT services leader, NTT DATA Services offers a wide array of technology consulting, operations, business process outsourcing and digital transformation capabilities. The company has significant expertise in core industries such as banking, healthcare and insurance.
Workplace Culture
NTT DATA Services strives to create a positive, supportive and inclusive workplace culture centered around its core values of client focus, children, health and wellness, long-term relationships, global competitive strengths, sharing, corporate citizenship and influencing the future.
The company offers employees extensive training and development programs to help advance their careers. There is an emphasis on work-life balance through flexible work arrangements.
NTT DATA Services receives strong ratings on Glassdoor and Comparably in areas like employee satisfaction, diversity and inclusion, work-life balance and senior leadership. Some highlights include:
– 84% of employees say NTT DATA Services is a great place to work compared to 59% of employees at a typical US-based company (Comparably)
– 78% of employees approve of the CEO (Comparably)
– 3.7 out of 5 employee satisfaction rating (Glassdoor)
– Women represent 29% of the NTT DATA Services workforce in the US (Comparably)
The company also provides competitive compensation and benefits, including:
– 401(k) matching
– Healthcare plans
– Wellness programs
– Tuition assistance
– Paid time off
– Parental leave
Overall, NTT DATA Services appears to promote a solid employee experience through its cultural focus, workplace policies and benefits. However, some employees have cited issues with middle management and limitations for career advancement in reviews.
Diversity & Inclusion
NTT DATA Services emphasizes diversity and inclusion as a core part of its culture and values. Some initiatives and achievements include:
– 29% female workforce in the US
– 92/100 diversity score on Comparably
– 7 Employee Network Groups focused on communities like Women, LGBTQ, Multicultural, Veterans, People with Disabilities and more
– Partnerships with organizations like Reboot Representation to improve recruitment from underrepresented groups
While the company has made strides in areas like gender diversity, its employee makeup still appears heavily skewed toward white and Asian ethnicities, especially in leadership and technology roles. There are opportunities to improve representation across underrepresented minorities.
Work-Life Balance
NTT DATA Services offers a variety of programs and initiatives aimed at promoting work-life balance for employees, including:
– Flexible work arrangements: Ability to work remotely, set flexible schedules, and utilize condensed work weeks
– Generous paid time off, sick days, and holiday schedules
– Employee assistance programs providing access to counselors, financial planning and legal services
– Wellness benefits like onsite fitness centers, workout reimbursement, and smoking cessation programs
– Child and elder care resources
– Sabbatical program providing 4-8 weeks off for long-tenured employees
The company culture encourages employees avoid overworking and take advantage of work-life balance offerings. Leadership emphasizes sustainability and avoiding burnout. Employees cite the flexible scheduling options favorably in reviews.
However, some employees still report challenges with work-life balance due to things like unrealistic deadlines, project demands and reliance on offshore developers in different time zones. But overall, NTT DATA Services appears to make work-life balance a priority.
Client Relationships
With over 85% of Fortune 100 companies and many other global enterprises as clients, NTT DATA Services clearly has strong credibility and trust with major corporate customers.
The company focuses heavily on client success and satisfaction. NTT DATA Services promises clients access to world-class skills, capabilities and insights to drive improved business outcomes and accelerate digital transformation.
Their approach emphasizes design thinking, agile methodologies and developing long-term strategic partnerships with clients rather than just delivering a one-off project.
Many prominent reviews site like Gartner and Clutch give NTT DATA Services strong ratings and positive commentary on aspects like technical capabilities, industry expertise, project management and value creation.
Some risks around client relationships include:
– Potential cultural disconnects when working extensively with offshore resources
– Communication and accountability challenges due to large team sizes
– Instances of teams perceived as inexperienced or under-resourced for the project demands
– Focus on maximizing utilization and upselling over client needs
But overall, NTT DATA Services tends to maintain very solid relationships with its clients evidenced by long tenures and strategic C-suite partnerships. The company has a track record of delivering successful outcomes aligned to client objectives.
Case Study: Transforming healthcare with a major US payer
NTT DATA Services helped one of the largest health insurance providers in the US transform their healthcare operations and digital capabilities. Results included:
– 30% faster claims processing, lowering costs
– 7 points higher in member satisfaction scores
– $100 million in administrative savings
– 400,000 provider records digitized and simplified
This complex, multi-year engagement exemplifies NTT DATA Services healthcare expertise and commitment to client outcomes.
Financial Performance
As a division and wholly owned subsidiary of the larger NTT DATA Corporation group, NTT DATA Services does not report completely independent financial results. However, we can examine the health and trajectory of the NTT DATA group’s financials with emphasis on the services segments that encompass NTT DATA Services’ business.
Some key metrics (NTT Group global FY2021 results):
– Consolidated revenue: $21.5 billion, +4.5% YoY organic growth
– Operating income: $1.8 billion, 8.4% operating margin
– Net income: $1.3 billion
Globally, NTT Group’s services segments (consulting, managed services, BPS) accounted for approximately half of total revenues. The services segments have delivered steady mid-single digit organic revenue growth and improving profitability over the past 5 fiscal years.
NTT DATA Services represents the largest component within the NTT Group’s global services business. As the market demand for IT services and digital transformation accelerates, NTT DATA Services appears well-positioned to capitalize from a financial perspective.
While the company does not disclose financials specifically for NTT DATA Services, its strong position within a financially healthy NTT DATA Group provides a robust foundation. Overall, NTT DATA Services exhibits solid financial performance and future upside.
Revenue Growth
– NTT Group consolidated revenues have grown at a 4-5% CAGR over the past 5 years
– Services segments (including NTT DATA Services) have grown organically even faster at 5-6%
– Demand for IT services and digital transformation is forecasted to drive 6-9% industry growth through 2025 (Gartner)
NTT DATA Services is poised to benefit from this market growth based on competitive strengths. Top line revenues expected to grow steadily in the high single digits based on past performance.
Profitability
– NTT Group overall operating margin is 8-9%
– Services segment operating margin improving towards 7-8% target
– NTT DATA Services has strategies to enhance utilization, optimize delivery mix and expand higher margin offerings
While NTT DATA Services likely operates at a slightly lower margin profile than the overall NTT Group, its profitability has expanded over the past 5 years and should continue improving according to management targets.
Competitive Positioning
The global IT services market is extremely competitive. NTT DATA Services competes against companies like Accenture, Cognizant, TCS, Infosys, Deloitte, IBM and more. Each firm has its relative strengths and weaknesses.
NTT DATA Services is positioned as a Leader in Gartner’s Magic Quadrant for IT services:
[Insert image of Gartner Magic Quadrant]
Image source: Gartner
This positioning reflects NTT DATA Services’ completeness of vision and ability to execute. The company stands out for strengths like:
– Industry-specific capabilities in key verticals
– Consulting-led approach combining design thinking and deep technology expertise
– Focus on driving business outcomes and ROI
– Global delivery capabilities and scale
The company does have gaps around things like brand awareness compared to Tier 1 competitors. But overall, NTT DATA Services remains well-positioned competitively based on a balanced set of capabilities and steady execution. It differentiates itself through deep industry expertise and client focus.
Strengths
– Strong capabilities across a breadth of emerging technologies: cloud, AI/ML, automation, blockchain, IoT
– Established credibility across core industries like financial services, healthcare, insurance
– Global delivery model combining onshore, nearshore and offshore resources
– Extensive IT services portfolio spanning consulting, app dev, infrastructure, BPO
Weaknesses
– Brand recognition lags behind largest Tier 1 competitors
– Ability to attract top talent compared to firms known for prestige
– Relatively low level of marketing investment
While NTT DATA Services may not stand out across every capability, its strengths around delivery scale, industry expertise and global footprint make it highly competitive.
Conclusion
In summary, NTT DATA Services exhibits many attributes of a good company based on criteria like:
– **Positive workplace culture:** Focus on values, strong employee satisfaction, competitive benefits
– **Strong client relationships:** 86% of Fortune 100 as clients, trusted strategic partnerships
– **Financial health:** Revenue growth, solid profitability, upside in growing market
– **Competitive positioning:** Leader with differentiated capabilities and steady execution
The company does have some potential areas for improvement:
– Boosting diversity across all levels and minority groups
– Continuing to improve middle management and career development
– Maintaining client satisfaction as business expands rapidly
But overall, NTT DATA Services appears to provide an excellent environment for employees and deliver significant value to clients while operating as a financially sound business. It has charted steady growth and successfully competes against the largest global IT services firms.
For both employees and clients, NTT DATA Services represents a reliable, ethical and capable partner focused on driving innovation and positive business outcomes well into the future.
