NTT Data Services to go for top-level reshuffle

NTT Data Services, which acquired Dell Services for $3.05 billion, has brought in a complete overhaul of its management team in alignment with Japanese culture, before the complete merger in April.

According to sources familiar with the development, the company has retained only a few vice presidents from Dell Services, and has toppled a majority of directors, senior managers and lead architects.

Suresh Vaswani, who was the CEO at Dell Services, and later became the president of NTT Data Services, has already put in his papers. The Wipro veteran, who took over as president of Dell Services in 2012, spearheaded its operations and brought heads from Wipro.

NTT Data Services, the US entity of $105-billion Japanese IT and telecom powerhouse NTT Group, purchased Dell Services last year. Besides the head of delivery operations, quality and client satisfaction Ashutosh Vaidya, NTT Data Services Senior VP Raman Sapra, who heads digital business, and innovation office head Prasad Thrikutam also resigned.

According to sources, NTT Data Services is not bringing in major changes in the infra, cloud, security and BPO divisions. Anand Sankaran will continue heading infrastructure, cloud computing and security verticals, while Tanvir Khan will head the BPO division.

As per the recent restructuring, these people will report to the company CEO John McCain effective from April 2017. Ramki Ramamurthy, Senior VP of Digital Practices, is still with the company.

Leading Japanese media have reported that investors in NTT Data are skeptical about the deal. “With little information revealed about the contract, shareholders worry that it might end up being yet another botched foreign acquisition,” states the report.

NTT Data projects operating profit will hit a record ¥105 billion in the year ending March 2017. Net profit, however, is expected to fall 23% to ¥49 billion, as a result of restructuring-related charges.

“There is rumour that the Japanese buyer is not satisfied with the acquisition of Dell Services. NTT Data Services believes that the billable clients are minimal and it is confined to the healthcare vertical,” said an analyst.