Samsung SDS made $2.63 billion (2.9682 trillion KRW) in sales this past third quarter making it the highest quarterly revenue during the company’s history. It was able to achieve this outstanding performance due to IT strategic business, expansion of BPO (Business Process Outsourcing) business, and growth of overseas business.
The company announced on Tuesday that it made $2.63 billion and $195 million (219.8 billion KRW) in sales and operating profit respectively this past third quarter. Its third quarter sales increased 15.6% and 11.7% compared to the second quarter and the third quarter last year respectively and they were the company’s highest quarterly sales ever. Its operating profit also increased 11.8% and 6.4% compared to the respective quarters.
Its sales from IT service business increased 1.1% to $297 million (334.7 billion KRW) in the third quarter compared to the second quarter. They have shown signs of recovery as the company has resumed making investments in the business that were delayed in the first half due to COVID-19.
The company explained that transition to cloud computing services by the manufacturing and financial industries, digital transformation of business systems by companies through ERP (Enterprise Resource Planning) and MES (Manufacturing Execution System), construction of smart factories, implementation of automated working environment and contact-free working environment based on collaborative solutions had led the growth of the company.
“Our performance in the IT service business improved as more companies have begun to make the transition to digital transformation through ERP, SCM (Supply Chain Management), and MES.” said Kang Seok-rip who is the head of Samsung SDS IT Innovation division. “We have our own digital transformation methodology established, we are going to provide customized plans according to different situations of our customers and types of businesses.”
The company is also seeing an increase in sales from its cloud computing business as more people and companies are utilizing IT systems in order to perform contact-free tasks. The fact that there is also an increase in number of financial companies that are trying to use cloud computing services from companies that specialize such services due to the implementation of three main data privacy laws.
“The financial world is considering introducing cloud computing services as the system upgrade cycle gradually becomes shorter from Big Bang projects that tend to last ten years.” said Yoon Shim who is the head of Samsung SDS Cloud division. “Because manufacturers are also gradually introducing cloud computing services in order to reduce their operation costs, our cloud computing business will continue to grow into the future.”
The company’s automation solutions such as AI-based analysis solution and RPA (Robotic Process Automation) are drawing attention when it comes to the company’s solutions division. Digital transformation and increased requests for contact-free business working environment are also giving the division new opportunities.
“We are going to expand our solutions business through AI-based RPA and virtual solutions in the fourth quarter as the coronavirus continues to spread.” said Lim Soo-hyeon who is the head of Samsung SDS Solutions division. “We are also going to increase supply of specialized solutions such as digital transformation engines and solutions and intelligent factory.”
Samsung SDS’ sales from its BPO business, which forms two pillars along with the company’s IT service business for the company’s overall business, increased 31% to $1.45 billion (1.6335 trillion KRW) compared to the second quarter. Increased demands for TVs and home appliances in the U.S. and Europe and expansion of the company’s overseas business had led the BPO business.
“We became the second South Korean private company after Samsung Electronics to receive a credit rating of A1 from Moody’s Corporation.” said CEO Hong Won-pyo of Samsung SDS. “The rating recognizes our financial stability and excellent business and it motivates us to continue to elevate our status during the era of New Normal and digital transformation.”
Staff Reporter An, Hocheon |