Nomura Research Institute to invest at least ¥200 billion in North American IT services business

The Yomiuri Shimbun

10:31 JST, September 23, 2022

Nomura Research Institute, Ltd. will invest at least ¥200 billion by 2030 to launch a full-scale IT services business in North America, President Shingo Konomoto said in a recent interview with The Yomiuri Shimbun.

The company is seeking to develop overseas markets, as achieving growth domestically will be difficult.

“The huge North American market offers good opportunities, and we want to build our business there by making a considerable number of acquisitions by 2030,” said Konomoto, who also is chairman of Nomura Research Institute.

Since 2016, Nomura Research Institute has been expanding its overseas operations through mergers and acquisitions of local companies, mainly in Australia, for its core IT service business, including system development and implementation.

In fiscal 2021, the company’s overseas business generated ¥76.5 billion in sales revenue.

By expanding its North American operations, the company aims to achieve sales of more than ¥250 billion in fiscal 2030.

Konomoto also expressed his intention to promote digital transformation projects for local governments and communities. In collaboration with local governments and other companies, the firm envisions providing, for example, administrative services through cell phone technology, even in depopulated areas.

The scale of the business is expected to be several tens of billions of yen in 2030.

Regarding consulting services, Konomoto said: “We want to use artificial intelligence to increase the productivity of small and midsize firms and help raise the overall level of the nation’s productivity.”