Medium-Term Management Policy

Management Plan and Policy

The Business Climate and Situation of the NTT DATA Group

The decline in business confidence and in corporate earnings since last year has had a dampening effect on customer IT spending. Customers are restricting their spending to the minimum necessary, such as compliance and security, as they put off spending plans or extend them over a longer time period. These kinds of changes in IT spending due to a downturn in business sentiment are to be seen in many of our customers.
On the bright side, even in this difficult economic climate we are seeing strong demand for shared system services that lead to reduced TCO (total cost of ownership), system integration made necessary by industry restructuring, system provisioning to enable improved readiness for global competition, and business process outsourcing. For companies facing global competition, in particular, the changing business climate itself makes it all the more necessary to seek innovations from IT as a way of maintaining their global competitive superiority.
Service provision prices to customers have long been on a downward trend, affected by growing competition from hardware vendors entering the market, the general spread of offshore development taking advantage of places such as India and China, the ongoing trend toward downsizing, and technology innovation. On top of such factors, the worsening of business sentiment has made customers all the more low-cost oriented. Demands for faster turnaround time have also increased as customers seek to benefit from providing speedier services in a rapidly changing environment.
Corporate social responsibility is one more area where companies, including those in the IT services industry, face unprecedented demands, as environmental and other issues for society become more diverse and complex.
These are some of the ways the management climate of the NTT DATA Group is undergoing rapid, dramatic changes. Faced with these changes, the NTT DATA Group has concluded that our medium- and long-term management policies are in need of a review in order to meet new expectations of customers while maintaining the sustainable management of the Group itself.

Medium-Term Management Policies

Even in this changing business climate, the NTT DATA Group will continue striving to pursue No. 1 in customer satisfaction as a leading-edge innovator.
Today that means we need to boost the total power of the Group, strengthen our service provision capability to meet changes quickly, and become more globally competitive so that we can in turn effectively support our customers who are competing globally.
The newly defined medium-term management policies represent a major course change, as outlined below.

Strengthening our Service Provision Capability

We will be building up our capabilities in many areas to enable provision of top-level services to customers in a rapidly changing environment. In addition to continuing with current improvement initiatives in such areas as sales and marketing strength, SI competitive strength, and human resources development, we will invest aggressively in innovation, boost our readiness to meet price and turnaround time demands, and strengthen our capabilities for meeting business model changes and other customer paradigm shifts. We will also be working on further enhancing our consulting capabilities so that, as partners with customers seeking innovation, we can better support work process reengineering and system utilization.

Expanding and Enhancing Group Business

Toward further expanding our service provision capability, we will be taking aggressive steps to broaden and strengthen group business, mainly in fields where we are still lacking. In particular we will expand our global base so that we can better support our customers who are competing globally.

Carrying Out Environment-oriented Management

We are committed to carrying out the kind of environment-oriented management the public demands. In addition to meeting the needs of society, we are ready to contribute toward the realization of a sustainable society by supporting customers in their efforts on behalf of the environment, in the area of IT services.
Based on these policies, we will be aiming to achieve quantitative expansion through quality under new medium-term management policies, realizing sustainable business growth and expanding the corporate value of the NTT DATA Group.

Management Target

Our medium-term management target is as follows.

Fiscal 2012 (fiscal year ending March 2013) : Consolidated sales of 1.5 trillion yen