Not so long ago, we heard the news that Dell wanted to sell off its services unit as it wanted to focus on its core business. Today, the announcement is doing the rounds that NTT Data, which has been the leading operator in Japan, is buying Dell’s technology services business for more than $3bn (£2.1bn). NTT is looking for ways to expand its business in North America and beyond.
NTT used to enjoy telephone monopoly in Japanese market. Now the company is under pressure to move out and expand globally. This is the reason that NTT has jumped into the acquisition drive. This is going to be the biggest-ever acquisition by NTT Data.
On the other hand, Dell has been looking to sell off non-core assets so that it could raise billions of dollars ahead of its $67bn takeover of data storage firm EMC Corp. It is learnt that NTT Data will absorb Dell’s 28,000 employees in North America and India.. Besides, the company is eager to expand its cloud and BPO services after this acquisition.
The firm was on the look out for new sources of revenues outside of Japan, as the country faces a shrinking and rapidly ageing population. However, it would be interesting to see how NTT Data utilizes the acquired business. It would compete with several established players such as TCS, Atos and others.