Conglomerates' IT Service Units Under Pressure to Diversify Income Sources | Be Korea-savvy

Conglomerates’ IT Service Units Under Pressure to Diversify Income Sources


Samsung SDS plans to expand its external customer base centered on cloud computing and next-generation ERP business.  (image: Samsung SDS)

Samsung SDS plans to expand its external customer base centered on cloud computing and next-generation ERP business. (image: Samsung SDS)

SEOUL, Nov. 1 (Korea Bizwire)As the Fair Trade Commission is stepping up pressure on conglomerates to reduce reliance on intra-group transactions in the area of IT services, their IT service affiliates are looking for ways to survive through income diversification.

Samsung SDS Co., an IT service unit of Samsung Group, revealed last week in a conference call that its growth strategy is to expand its external business in the areas of cloud computing and logistics.

Particularly in the IT service area, the company plans to expand its external customer base centered on cloud computing and next-generation enterprise resource planning (ERP) business.

In addition, the company is beefing up efforts to secure non-affiliated logistics customers by launching the digital logistics platform ‘Cello Square 4.0’ targeting SMEs and mid-sized companies.

LG CNS Co. is also pushing to expand its external business in the areas of cloud computing and smart logistics, while attempting to diversify its incomes through new businesses such as My Data.

Prior to this move, it strengthened its cloud business by releasing the integrated cloud operation service ‘CloudXper ProOps’ that covers infrastructure, application system and security.

Through this service, the company can apply a variety of new information technologies such as customized hybrid, multi cloud, artificial intelligence and big data, as well as providing the optimization of cloud expenses.

SK C&C Co. is also engaged in the expansion of its cloud-based digital platform strategy, aimed at strengthening its digital transformation business through cooperation with global companies.

In collaboration with consulting firm Kearney Korea LLC, the company developed a solution to diagnose the customer’s level of digital transformation.

In addition, to promote the digital transformation of businesses, it also plans to provide all-in-one support covering the design of architecture and introduction of platforms and solutions.

J. S. Shin (js_shin@koreabizwire.com)

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