Most SI firms in Korea had enjoyed their glory days until 2001. But what goes up must come down. Beginning in 2002, the SI market showed a clear downward curve to a slump. The slump has been continuing since then. This year, most SI firms in Korea found it difficult to stay viable in the face of an overall slump in the sector domestically.

But as Korea's leading SI player, Samsung SDS stayed profitable last year. The company earned 1.8 trillion won in sales and 71 billion won in operating profits. With its sales target raised by 11% and its net profits target doubled. Samsung SDS set its management goal as "Expansion Management," and "Global Management" to ensure a continuing of this trend.

Under these goals, Samsung SDS has pursued a strategy of making the Samsung Group a first-class information-powered business group. This effort will underpin the Group's continuing policies of value-creating management, information, and technology systems.

Samsung SDS sees Expansion Management and Global Management as catalysts for its core future growth engine that will lead the company to take off as a world-class player. Samsung SDS will make the level of the Samsung Group's informatization a world-class one. Samsung SDS' know-how and experiences from successful accomplishment of projects for Samsung Electronics and other Samsung affiliates enabled Samsung SDS to carry out the Electronic Government Project and overseas projects.

In addition to its existing business sectors such as e-government solutions, SI and IT services for finance and manufacturing, IT projects for SOC, consulting, and data management, Samsung SDS is developing IT outsourcing, web services, and Real Time Enterprise (RTE). The firm is also seeking to expand its market share abroad, particularly in the Asia-Pacific region.

In the domestic IT outsourcing market, Samsung SDS has provided IT sourcing services for Korea Development Bank, KT&G and the Korean National Cancer Center.

According to analysts in the sector, manufacturing sector quality management costs average 25%. This figure rises to 40% in SI. Recognizing then that quality control is crucial in SI, Samsung SDS is utilizing the Six methodology and enhanced management systems, including the integration of both theoretical and applied business methodologies into its continuously ongoing management upgrades.

Samsung SDS has also been operating an "Innovation 350-Day Movement." The Innovation 350-Day Movement is a company-wide campaign where all employees of Samsung SDS strive to enhance their personal productivity by personal innovations for 350 days. The new drive for increased personal personal productivity and improved work management systems is tied directly to the firm's business reengineering efforts.

"Expansion Management and Global Mangagement do mean not expansion in size but in performance and productivity. This will be our springboard to future growth by benchmarking our work processes and systems against global standards," Kim In, president of Samsung SDS told reporters.

In the information era, Samsung SDS has already been recognized for its excellence. Samsung SDS has now won the "Asian MAKE" (Asian Most Admired Knowledge Enterprises) award for three straight years. The award is one of the most sought-after accolades in the information management sector. Canon and Honda Motor of Japan, Taiwan Semiconductor Manufacturing Company (Taiwan) and Singapore Airlines are among the winners of the 2004 Asian MAKE study, conducted by Teleos in association with the KNOW Network.

Samsung SDS has also been raising its profile in overseas markets and projects. Based on its e-government projects in Korea, the company received orders for similar projects from the Japanese Government. With its extensive experience garnered from its participation in developing such systems for Incheon International Airport, Samsung SDS also took part in an airport informatization project in China.

In June, Samsung SDS established a regional office in Brazil to provide better IT services for South America. The SDSA (SDS America) Brazil regional office in San Paulo has been assuming IT responsibilities for subsidiaries of the Samsung Group in South America. The new office in Brazil will allow the Samsung Group to offer complete IT services in the region, including improved customer services. The new regional office in Brazil has allowed Samsung SDS to offer complete IT Services to seven electronic divisions in South America.