Japan's NTT debuts in India with Vertex buy

NTT Data Corporation, the data services operation of the world's largest telecom company, NTT Corporation of Japan, has set foot in India by acquiring 68.7 per cent equity in Pune-based software developer Vertex Software.

One of the largest players in the Japanese IT services market, NTT Data Corporation has begun to grow outside its home market, which so far had been focusing only on China .

It will buy Vertex's shares from its current shareholders -- Japan-based Mitsui & Company and US-based software firm LogicSoft, according to sources in Vertex.

Vertex Software, a company involved in mobile product engineering, handset porting, MMS and WAP porting, software testing services and product development, has a turnover of a little over Rs 24 crore.

The company has offices in Pune, Tokyo and Acton (US). While the amount of the deal was not disclosed by the company, a top Vertex official stated that the deal would be completed in the first week of December.

NTT so far has been dealing with Japanese and Chinese firms and has tie-ups with a number of IT companies based in China. The company now plans to acquire a business base in India, considering the low manpower and shortage of IT expertise in China, sources said.

NTT Data also plans to increase its overseas consignment to ¥10 billion in FY10 from some ¥3.4 billion in FY06, while raising its dependence on non-Chinese areas to 10 per cent or more from the current 5 per cent.

Vertex hopes to increase its revenue to ¥1.5 billion over the next three years from ¥620 million in FY06. It will continue its own sales operations and carry on receiving software development orders from NTT Data.

Founded in 1967, the company was formerly known as NTT Data Communications Systems Corporation and changed its name to NTT Data Corporation in 1998.

The company is headquartered in Tokyo, Japan. It is a subsidiary of Nippon Telegraph and Telephone Corporation. The company, which recently bought Tryarc, had stated its intention to buy mid-size IT firms in Europe and India, where it still does not have a presence.

NTT Data Corporation, together with its subsidiaries, engages in the marketing, leasing and installation of various data communications systems, primarily in Japan.

The company's services include hardware and software development, systems integration, network and intranet development and e-commerce services. The company primarily operates in Japan. It is headquartered in Tokyo, Japan and employs about 21,300 people.

The company, through its subsidiaries, also provides education and training services, consulting services, software development and maintenance, staffing and agency, general affairs outsourcing, and financial information services, as well as various services related to credit card operations.

In addition, it involves in-contact centre businesses and package software sales. zzzzzzzAs of March 31, 2007, the group pre-tax profit doubled to ¥85.7 billion ($714.9 million), sales rose 15 per cent to ¥1.04 trillion.

The company's operating profit surged 93 per cent to ¥90.2 billion. Net profit jumped 80 per cent to ¥50.6 billion. For 2007-08, the company expects sales to grow 3 per cent to ¥1.08 trillion, lifting its projected pretax profit by 6 per cent to ¥91 billion.

---

From the land of the rising sun

The company will buy Vertex's shares from its current shareholders -- Japan-based Mitsui & Company and US-based software firm LogicSoft

NTT plans to acquire a business base in India, considering the low manpower and shortage of IT expertise in China

NTT Data Corporation is growing outside its home market, Japan, and has been focusing on China