Samsung SDS Teams Up With SAP

By Cho Jin-seo

Staff Reporter

Samsung SDS, the information technology service affiliate of Samsung Group, has forged a partnership deal with SAP, the world's largest business software maker, to cooperate in the rapidly growing Chinese public and private information technology (IT) systems market.

The deal is Samsung SDS's second effort to expand its global network after signing a similar deal with French IT company Capgemini.

The two firms signed the deal on Wednesday at the Shilla Hotel in Seoul to launch joint marketing and sales operations for the enterprise software systems or ERP (enterprise resource planning) market in Korea and China. They also plan to expand to Southeast Asia.

``The mutual and comprehensive partnership will help us sustain the domestic ERP market of 10 percent annual growth and lay a solid foundation for the rapidly expanding Chinese ERP market," Samsung SDS CEO Kim In said in a statement. ``Thanks to the strategic alliance, we expect stable growth toward a new growth engine business.''

Samsung SDS is the largest IT service firm in South Korea. The company has been taking care of Samsung Group's corporate computer systems, such as finance, supply chain management, human resource management, customer relations management and logistics and payment systems. It also does the software outsourcing business for Samsung Electronics and many other Samsung affiliates.

It employed over 8,000 people with revenues of $2.26 billion in 2006. Because of its role as a data center of Samsung Group, the company has recently been the target of a prosecutors' investigation on corruption and tax evasion allegations.

SAP is the world's largest business software maker, with over 40,000 employees and 10.25 billion euros of revenue in 2007. Though it is not very well known to ordinary consumers, it is well known within the business world for its ERP products, which is an integral part of today's enterprises.

Like almost all other IT service companies, Samsung SDS has been purchasing SAP's ERP packages and providing them to customers. Wednesday's deal will strengthen ties in the Asian region, Samsung SDS said.

``SAP will provide the ERP packages and we will do the sales and consulting,'' a public relations official of Samsung SDS said. The two firms also agreed to cooperate on the emerging business sector known as GRC, which represents governance, risk and compliance.

``This strategic partnership will further promote efficient system implementation and professional consulting capacity, which in turn will strengthen the competitiveness of our customers,'' said Geraldine McBride, president and CEO of SAP's Asia pacific division.

indizio@koreatimes.co.kr