by Adam Armstrong

Dell Sells Its Dell Services To NTT DATA

Today Dell Inc. and NTT DATA Inc. announced that they have entered a definitive agreement for NTT DATA to acquire Dell Services. Dell Services, formally Perot Systems, is an IT consulting service that works closely with markets such as government departments and hospitals. NTT DATA will be acquiring Dell Services for a little over $3 billion.

Headquartered in Japan, NTT DATA is an IT services provider and global innovation partner with 80,000 professionals based in over 40 countries. NTT DATA belongs to the NTT Group that is partnered with 80% of the Fortune Global 100 and generate over $100 billion a year in revenue. The main focus on the services NTT DATA provide are consulting, application services, business process and IT outsourcing, and cloud-based solutions.

Dell acquired Perot Systems in 2009, for $3.9 billion. Perot Systems was founded in 1988 led by Texas business man and some time presidential candidate, H. Ross Perot. Perot Systems was an IT service provider with annual revenue of $2.8 billion. In 2008 it was recognized by Fortune magazine in its  “Most Admired Companies in America” list. Dell will be selling off this service for roughly $800 million less than it initially paid to acquire it.

NTT DATA states that there will be several benefits to clients and employees of both Dell Services and NTT DATA including:

  • A significant expansion of BPO capabilities, particularly in healthcare and insurance industries.
  • Increased infrastructure platform, with the Dell Services data centers in the U.S., U.K., and Australia joining NTT’s 230 data centers around the globe.
  • Expanded technology resources to provide next-generation application and business process services to help clients leverage IT to drive business performance and outcomes.

NTT DATA CEO John McCain will lead the combined businesses. Suresh Vaswani, president of Dell Services, will continue to lead Dell Services until the transaction closes. The transaction is subject to customary closing conditions and regulatory approvals.

NTT DATA main site

Dell Services

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