Expansion: Japan’s NTT to buy Dell’s IT service operations
PHOTO: AFP
Japan’s NTT Data said on Monday it had agreed to buy computer giant Dell’s IT service operations for $3 billion in a bid to expand in North America.
The Tokyo-based IT firm, a unit of Japan’s former telephone monopoly NTT, said it will absorb about 28,000 employees with the purchase, mainly from North America and India, bringing its total global workforce to more than 100,000.
“NTT Data will expand our North American operations while also aiming to offer services with cutting-edge technology in cloud storage and other sectors,” the Japanese firm said in a statement. The company said the Dell operations were particularly strong in the US healthcare sector. The move comes as Japanese firms rush to expand overseas, as the domestic market is set to shrink due to a falling birth rate and shrinking workforce, while the elderly population grows.
NTT Data has more than doubled in market value since 2011 on rising sales to financial and healthcare businesses using the company’s data centres and software. APP/AFP
Published in The Express Tribune, March 29th, 2016.