Samsung SDS aims for 'global 10' by 2020
CEO stresses global alliance, plans W20 tril in sales
By Kim Yoo-chul
Jun Dong-soo Samsung SDS CEO
Samsung SDS said Wednesday that it aims to become one of the top 10 companies in the world in the information and communications technology (ICT) services and solution sector by 2020.
It also hopes to attain 20 trillion won in sales by that target year.
The company’s new growth driver is business processing outsourcing (BPO) in logistics, and innovative IT outsourcing adopting SMAC (SNS, Mobility, Analytics, Cloud,) CEO Jun Dong-soo said.
The expansion of the Internet and advances in technology have created a whole new type of outsourcing.
Instead of outsourcing their manufacturing, which remains controversial in some fields, many companies are now taking advantage of BPO as BPO has a variety of benefits for companies, allowing them to focus more on their core mission.
It is estimated that BPO can save companies anywhere up to 40 percent in increased efficiency and reduced labor costs.
Jun said BPO is growing in popularity as online techs improve and more BPO companies enter into the market.
He stressed Samsung SDS's continued efforts to focus on BPO business will help it diversify its portfolio.
“Samsung SDS's BPO business has continued growing over the last few years and will see stronger growth in the next few years," Jun said.
He made those remarks at a press conference to mark the celebration of its 30th anniversary at its new office in Jamsil, southern Seoul.
Jun said the BPO business could find opportunities outside the Samsung Group of affiliates once it completes its global procurement and supply logistics network.
“Samsung SDS is ready to tackle growing challenges to put its new businesses on a growth track as early as possible. Specifically, we aim to generate 20 trillion won in sales by 2020,” he said. Last year, SDS reported 7.89 trillion won in sales.
SDS has identified IT Outsourcing (ITO), BPO and business with solutions as its next key businesses.
“Samsung SDS plans to record 7 trillion won in sales in the IOT business,” he said.
Jun said the company will closely team up with Samsung Electronics, which moves to invest more in mobile security solutions and enterprise management solutions amid the consumer electronics titan's gradual shift toward the business-to-business (B2B) segment.
The executive, a former president at Samsung Electronics' memory chip business division, seeks to expand tie-ups with global companies. It has teamed up with Oracle to grow its China business.
Jun denied speculation that Samsung SDS may take over Samsung Electronics' unprofitable network equipment business division.
“There are a lot of rumors surrounding our company. But we will do things our own way. About stock prices, I think if all key conditions are met ― growth in IT services and logistics ― Samsung SDS share prices will rise,” the CEO said.