Major changes afoot at Dimension Data, sources say

Dimension Data and its parent, Nippon Telegraph and Telephone (NTT) Corp, are poised to announce a major restructuring as early as next week, according to sources who claim to have knowledge of the situation.

The plan, they say, is to fold Dimension Data into the Japanese telecommunications giant’s NTT Communications unit.

Details are scant for now — and Dimension Data is not commenting — but it’s understood an announcement could be made by NTT by the middle of next week. The South African IT services group was bought by NTT in 2010 in a £2.1-billion deal (R24.4-billion at the time) and was then delisted from the Johannesburg Stock Exchange and the London Stock Exchange.

Until now, Dimension Data has operated as an autonomous unit within the NTT Group. It’s not known if the developments mean that the Dimension Data brand will fall away in favour of NTT Communications or some other name.

NTT Communications, also known as NTT Com, was established in 1999. It is NTT’s largest subsidiary and provides network management, security and other technology solutions to consumers, businesses and governments around the world.

In response to e-mailed questions from TechCentral, Dimension Data Middle East and Africa CEO Grant Bodley said only that “NTT has not announced any changes to the structure, operations or management of the company. We do not comment on industry speculation or market rumour.”

Bodley referred TechCentral to the press release sections of the NTT and Dimension Data websites for any future updates.

TechCentral understands that it has been NTT’s intention for some time eventually to fold Dimension Data into NTT Com, but that this has been brought forward for reasons that are not immediately clear.

Dimension Data, which was the largest listed IT company in South Africa before the buyout and delisting, declined to comment on what the apparent decision to merge the entities will have on the South African company’s operations and on management reporting lines. It also declined to comment on whether the Dimension Data brand will be retained, whether the move will result in job losses and whether the company’s head office will be relocated from South Africa to another territory.

Internet Solutions

Meanwhile, separate speculation in the market is that Dimension Data Middle East and Africa division Internet Solutions, which said last month that it will be begin a fresh round of retrenchments, may be folded into Dimension Data. It’s understood that if the plan goes ahead, sales, finance, cloud, security and other teams could be merged under one umbrella. Bodley also declined to comment on questions related to this.

TechCentral first reported two weeks ago that Internet Solutions had begun a restructuring process that could lead to as many as 200 positions being made redundant. Support and installation teams were said to have been given letters and asked to reapply for their jobs. A well-placed source said the impending layoffs came after the Internet and telecommunications provider failed to meet earnings forecasts.

Internet Solutions MD Saki Missaikos said the company was still early in the process and could not confirm exactly how many jobs would be affected. — © 2018 NewsCentral Media