TLDR: NTT Data is spearheading an initiative to eradicate an estimated $1.5 trillion in global technical debt through an advanced AI-driven strategy, emphasizing agentic AI, a ‘code-to-spec’ approach, and a Smart AI Agent Ecosystem. This move aims to transform how enterprises manage legacy systems and accelerate digital transformation.
The global enterprise landscape is grappling with an estimated $1.5 trillion in accumulated technical debt, a critical issue that has moved from IT departments to boardroom discussions. This ‘debt,’ often stemming from outdated legacy systems and siloed infrastructure, significantly hinders business growth, agility, and innovation, leading to substantial expenditure simply to maintain operations.
NTT Data is at the forefront of addressing this colossal challenge with an innovative AI-driven approach. Rajeev Singh, Group Senior Vice President and GTM head for the Apps and BPS global practice at NTT Data, highlighted the severity of the problem, stating, ‘Technical debt, a concept long understood by IT teams, is now a boardroom topic, signifying its broad implications.’ He pointed to industries like insurance, where reliance on COBOL or mainframe platforms for core processing leads to delays, hinders business growth, and impacts customer acquisition and revenue.
NTT Data’s strategy centers on leveraging cutting-edge technologies, particularly agentic AI, to transform technical debt eradication. Their ‘code-to-spec’ approach and innovative Smart AI Agent Ecosystem are key components of this strategy. Singh explained that these AI technologies allow for more efficient debt management, reduced risk, and provide clients with clarity and speed, marking a significant shift in how generative and agentic AI are transforming technical debt management.
The impact of NTT Data’s AI solutions is already evident in various applications. For instance, the company successfully processed 16 million lines of legacy COBOL code to create a comprehensive information base in just three and a half months—a feat previously deemed impossible. In another case, NTT Data helped a client build an organized intelligence network and a smart chatbot using generative AI, enabling assembly line workers to access real-time solutions and significantly improving productivity by resolving operational stoppage issues. Furthermore, for a US insurer, AI boosted the efficiency of claims processing, increasing adjudicators’ productivity by 70%, and for a US pharmaceuticals company, GenAI reduced data-mapping time for a single data source from six months to just three minutes with higher accuracy.
Beyond specific projects, NTT Data is making substantial strategic investments. The company plans to invest $1.5 billion in India over the next three years, aiming to position the country among its top five global markets. These investments are directed towards serving global and India-based clients, heavily investing in data centers and AI infrastructure crucial for digital transformation, and expanding their presence in the payments industry. A significant partnership with OpenAI further underscores NTT Data’s commitment to harnessing advanced AI capabilities.
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The broader industry perspective, as highlighted by a recent HFS Research report, indicates that despite years of digital ambition and billions in modernization budgets, technical debt remains the single biggest barrier to innovation. The report suggests that enterprises must rethink their entire approach to technology, moving beyond surface-level AI fixes to re-architect systems around AI and embrace AI-native ways of working. NTT Data’s comprehensive, AI-driven strategy aligns with this imperative, offering a path for enterprises to break free from the cycle of technical debt and accelerate their digital future.
