Can NTT DATA’s acquisition spree springboard the firm as a digital and analytics leader?

NTT DATA, a global IT and operations service provider, is heavily investing in the US with its focused acquisitions in the digital, data, analytics, and advisory space. It recently acquired Aspirent, a data analytics firm, soon after acquiring Hashmap and Chainalytics.  NTT DATA’s expansion in the US is timely and set to make a significant impact on its market share, given the growing global digitalization spur. So how seriously should we take the firm as a next-generation digital player for IT services?

NTT DATA has acquired 13 digital and data companies in North America in the last four years.

In October 2022, NTT DATA announced it would create a new operating company by combining the IT services organizations of NTT and NTT DATA – notably, the plan included aggressive geographic expansion beyond its core region: Japan.

Exhibit 1 outlines the 13 acquisitions NTT DATA has closed since 2019 in the USA, which its executives believe will strengthen its onshore capabilities in data engineering, cloud engineering, and data analytics. In fact, 72% of the acquired firms are headquartered in North America, giving NTT DATA boots on the ground and fuelling their expansion plans in the region, alongside handily adding clients in their early stages of digital transformation.

The acquisitions all deliver capabilities to support the shift of legacy platforms to agile, scalable platforms. Its market cap has increased from $15.31 billion in 2018 to $20.26 billion in 2022.

Exhibit 1: NTT DATA’s recent acquisition history is indicative of its growth in North America

Aspirent adds data analytics and advisory muscle

To win in today’s data-led economy every enterprise must have expert data, digital, and analytics partners. To that end, NTT DATA is making a play to springboard itself to the top of every North American enterprise’s roster by accelerating and scaling its capabilities in the space with over a dozen acquisitions in the last three years. The latest is data analytics firm Aspirent.

Aspirent, founded in 2012, is a purpose-built analytics consulting firm headquartered in Atlanta, US. It will add more than 230 data advisors and technologists to NTT DATA’s data and analytics team – all of which are based in the US, enhancing its nearshore capabilities for clients in the region. The acquisition will expand NTT DATA’s industry consulting practice with deep data science, analytics, and visualization capabilities and, to some extent, cloud, and data engineering capabilities. The two companies have been working together on projects for many years, suggesting cultural fit won’t be an issue.

NTT DATA emphasizes that Aspirent is more than just a technology play. It leads with an advisory-based, partner consulting model. Aspirent believes in driving business outcomes vs. technology deployment, an approach well aligned to working with NTT DATA’s top-tier clients, which includes The Gap, The Coca-Cola Company, and The Home Depot.

The Bottom Line: NTT DATA’s onshore acquisitions help it become a more rounded partner for North American customers.

North American enterprise leaders who may have dropped NTT DATA from their consideration set in recent years, should be ready to take a fresh look. 13 acquisitions add a lot of new capability and capacity in a market where talent is in short supply. The latest move adds consulting muscle to under-doubted tech know-how, helping them become a more rounded partner for enterprise clients.