We Are Targeting Billion-dollar Revenue Mark In India: NTT DATA Executives
NTT DATA, a global IT and business services provider, is intensifying its focus on India, stressing on it as a pivotal element in its global expansion strategy. The company's ambitions for the Indian market include crossing the billion-dollar revenue mark in the next few years, NTT DATA leadership told BW Businessworld.
Priorities in the Indian market for the Japanese-headquartered global company revolve around enhancing data centre capabilities, with a particular emphasis on high-density power data centres and edge computing. NTT DATA anticipates the convergence of multi-cloud environments, edge computing and AI in India, with a focus on serving hyperscalers investing significantly in the domestic market.
With a workforce of 40,000 employees, India stands as the largest employee base outside of Japan for NTT DATA.
While acknowledging India's historical significance as a cost-effective destination, NTT DATA's leadership emphasised a shift towards recognising the exceptional quality of talent in the country, spanning from full-stack developers to consultants.
Speaking with BW Businessworld, Bob Pryor, CEO at NTT DATA (North America), highlighted India's critical role in the company's global operations, where nearly 27,000 employees primarily serve clients in the Americas market. The focus extends beyond cost considerations to the substantial value that the Indian workforce brings to various domains, including consulting, integration applications, infrastructure and business process outsourcing.
"India's place around the world in technology is dramatic and substantial. So, the quality of skills, education and technology-related training and development, are really important for our business." - Bob Pryor, CEO at NTT DATA (North America)
Pryor said NTT DATA's commitment to employee development in India is evident, with substantial investments in hiring and training initiatives. He said that the company's strategy includes advanced training not only for programmers but also for data scientists and professionals holding advanced degrees in various disciplines.
Meanwhile, Amir Durrani, Executive VP of Digital Operations at NTT DATA, emphasised India's critical role in the company's growth strategy. He highlighted the transformation of India market from being primarily a cost-oriented hub to becoming a source of high-value skills, noting that specialised areas crucial for the company's operations are expected to flourish in India.
"As we dive into generative AI, we believe that we will continue to utilise more and more skills out of India. A lot of the specialised areas that we are seeing, we believe that we will be able to create those skills in India more successfully than anywhere else in the world," Durrani said.
The Indian market has also emerged as a hotspot for NTT DATA's data centre business, with Durrani noting that the demand is so high that data centres are sold out before completion. The company now faces the challenge of meeting the rapid pace of demand in a region where data infrastructure is becoming increasingly vital.
Despite a slowdown in IT spending globally, NTT DATA's data centre business remains a beacon of profitability, with billions invested annually to meet the insatiable demand for data storage and edge computing, said Pryor.
Slow Year In IT
Due to the prevailing uncertain macroeconomic conditions in pivotal markets such as the US and Europe, credit rating agency Icra recently said that it anticipates a moderation in the revenue growth of the Indian IT services industry. Projections indicate a range of 3-5 per cent in USD terms for the fiscal year 2024, a significant decline from the 10 per cent growth witnessed in FY2023. This deceleration is foreseen to persist over the next few quarters, contributing to an industry-wide slowdown in hiring activities. The trend is seen to persist globally as well.
CEO Pryor acknowledged the nuanced impact of economic shifts on different regions with regards to IT. "While North America experienced a slowdown in spending (IT), the business in Japan and other areas continued to grow for NTT DATA," he said.
Industries such as insurance and healthcare proved to be robust, countering cutbacks seen in sectors like banking. NTT Data's adaptability to varying economic trends has positioned the company to weather the storm, particularly in the face of reduced discretionary spending and an extended decision-making landscape, added Pryor.
Durrani, shedding light on the US market, emphasised on a heightened focus on cost management. The company reportedly seized opportunities in outsourcing and automation, leveraging generative AI to provide transformative solutions to clients at minimal or no additional cost. And despite the pressures on discretionary spending, NTT DATA said it had identified and capitalised on avenues for growth, particularly in terms of cost takeout and efficient management.
