Tokyo: NTT DATA Corporation will open up a new front in Far East offshore development this month when it applies to set up a new subsidiary in Myanmar (Burma).
Myanmar, which is enjoying some relief from international sanctions following the release of democracy movement leader Aung San Suu Kyi and her participation in recent parliamentary elections, is a country with a large potential for economic development, according to NTT Data.
NTT DATA, and its Singapore-based subsidiary NTT DATA Asia Pacific Pte. Ltd., will own the new company jointly; it should be established by September and is expected to start operations by the end of this fiscal year.
NTT DATA says the move is part of a strategy to expand offshore development sites in China, India, and Vietnam, initially to support its business in Japan, but with wider long term possibilities.
The firm says it recognises, "the large IT-related potential of Myanmar. We believe that the country has many advantages as an offshore development centre for Japan, such as being more cost competitive than China and India, the availability of ample human resources of high quality, and linguistic similarity between Burmese and Japanese."
NTT DATA says an offshore development site in Myanmar's capital Yangon (Rangoon) will create up to 500 jobs within five years, employ local people, contribute to the development of IT professionals in collaboration with a local computer college, and help Myanmar modernize and expand its economy.
NTT DATA itself began trading as a global consulting firm with a single brand last month.
In Europe NTT DATA EMEA Ltd. was established in March and NTT DATA is currently integrating and reorganising Cirquent and Value Team as well as some operations of Keane and Intelligroup into a single market-facing organisation.