How NTT Data Established Its GCC in India: A Comprehensive Case Study

Introduction

NTT Data, a global leader in IT services and consulting, has significantly expanded its operations in India through a robust Global Capability Center (GCC). With a focus on digital transformation, innovation, and cost-efficient delivery, the Indian GCC has become a critical hub for NTT Data’s global services.

This case study explores why NTT Data chose India for its GCC, the strategies employed, challenges faced, and the measurable impact on the company and the Indian IT ecosystem.

Table of Contents

Why India for NTT Data’s GCC?

1. Availability of Skilled Talent

India is home to a vast pool of highly skilled IT professionals, with over 4.5 million employees in the IT and BPM sector. This talent aligns well with NTT Data’s focus areas, such as cloud computing, AI, and cybersecurity.

2. Cost-Effective Operations

Operating costs in India are significantly lower than in developed countries. NTT Data leveraged this cost advantage to provide high-quality IT services at competitive prices.

3. Rapidly Growing IT Sector

India’s IT sector has been growing at a CAGR of 7.5%, making it a global leader in software development, digital services, and IT consulting.

4. Strategic Market Location

India’s geographical location allows NTT Data to efficiently serve clients across time zones, from Asia-Pacific to Europe and North America.

NTT Data’s GCC Operations in India

1. Establishment and Expansion

NTT Data’s first major presence in India came through the acquisition of Keane International in 2010, giving it a strong foothold in the country.
Over the years, NTT Data expanded its GCC operations across cities like Bengaluru, Pune, Chennai, Hyderabad, and Noida.

2. Digital Transformation Focus

The GCC drives innovation in digital transformation areas such as AI, machine learning, cloud computing, and data analytics.
Teams in India work on cutting-edge solutions for industries like healthcare, banking, and manufacturing.

3. End-to-End Service Delivery

The Indian GCC offers services across the IT lifecycle, including application development, IT infrastructure management, cybersecurity, and business process outsourcing (BPO).
This end-to-end capability enables seamless integration with NTT Data’s global operations.

4. Innovation Centers

NTT Data has established innovation hubs within its Indian GCC to foster R&D in emerging technologies such as blockchain, IoT, and quantum computing.

Key Contributions of the GCC

1. Supporting Global Operations

The Indian GCC handles a significant portion of NTT Data’s global projects, offering scalable solutions and efficient delivery models.
It supports clients in over 50 countries, contributing to NTT Data’s position as a top-tier IT service provider.

2. Cost Savings

By centralizing operations in India, NTT Data achieved an estimated 30-40% reduction in delivery costs compared to other markets.

3. Digital Innovations

The GCC developed AI-driven solutions for fraud detection in the banking sector and predictive analytics tools for healthcare clients.
Cloud migration projects handled in India saved global clients millions of dollars in operational costs.

4. Skill Development and Employment

NTT Data’s GCC directly employs over 40,000 professionals in India.
Training programs have upskilled employees in emerging technologies, ensuring alignment with global IT trends.

Challenges Faced by NTT Data’s GCC

1. High Competition

India’s IT market is highly competitive, with major players like Infosys, TCS, and Wipro dominating. NTT Data had to differentiate itself with niche expertise and customized solutions.

2. Talent Retention

With increasing demand for skilled IT professionals, retaining top talent in a competitive job market was a challenge. NTT Data addressed this with attractive career development programs.

3. Regulatory Complexity

Navigating India’s complex regulatory environment, including tax laws and data protection regulations, required careful planning and local expertise.

4. Infrastructure Gaps

While Tier-1 cities offer robust infrastructure, operational scalability in Tier-2 cities required significant investment in connectivity and facilities.

Impact of NTT Data’s GCC in India

1. Enhanced Global Capabilities

The Indian GCC accounts for over 50% of NTT Data’s global delivery operations, making it the backbone of its service delivery model.
Teams in India handle large-scale digital transformation projects for Fortune 500 clients.

2. Economic Contribution

NTT Data’s investments in India have significantly contributed to the country’s IT export revenue, which surpassed $150 billion in 2023.
The GCC also supports India’s startup ecosystem through collaborations and technology partnerships.

3. Industry Innovations

The Indian GCC developed a blockchain-based supply chain management tool, which is now used by multinational clients to improve transparency and efficiency.
Cloud-native solutions created in India have accelerated digital transformation for global enterprises.

4. Sustainability Initiatives

NTT Data’s GCC has implemented green IT practices, such as energy-efficient data centers and remote work policies, reducing its carbon footprint.

Lessons Learned from NTT Data’s GCC Success

1. Adapting to Local Ecosystems

NTT Data’s success in India stems from understanding and adapting to the local market’s strengths, including its workforce and infrastructure.

2. Focus on Innovation

The GCC’s emphasis on R&D and cutting-edge technologies enabled NTT Data to stay ahead in the rapidly evolving IT landscape.

3. Long-Term Investments

Consistent investments in talent, infrastructure, and partnerships have positioned the GCC as a vital part of NTT Data’s global strategy.

4. Collaborative Approach

Partnering with Indian universities, startups, and tech hubs has created a thriving ecosystem for innovation and talent development.

Future Plans for NTT Data’s GCC

Expansion into Tier-2 Cities: To tap into untapped talent pools, NTT Data plans to open additional facilities in emerging tech hubs like Indore and Kochi.
Increased Focus on AI and Automation: The GCC aims to develop advanced AI-driven tools for process automation and decision-making.
Global Cybersecurity Hub: Plans are underway to position India as NTT Data’s primary center for cybersecurity operations and R&D.
Sustainability Goals: The GCC will expand its green IT initiatives, including solar-powered data centers and sustainable software practices.

Conclusion

NTT Data’s GCC in India exemplifies how global IT companies can leverage the country’s talent and market potential to drive innovation and efficiency. By focusing on digital transformation, scalable operations, and long-term investments, NTT Data has built a GCC that not only strengthens its global presence but also contributes significantly to India’s IT ecosystem.

The success of this GCC underscores the importance of adaptability, innovation, and collaboration in achieving sustainable growth. As NTT Data continues to expand its operations, its Indian GCC will remain a cornerstone of its global success.