SI 3 Companies Brighten Up Thanks to Cloud Transition and MyData

[Asia Economy Reporter Kang Nahum] The operating profits of the three major domestic SI (System Integration) companies?LG CNS, Samsung SDS, and SK C&C?in the first quarter of this year increased significantly compared to the previous year. The rise in demand for cloud migration projects and MyData platform construction projects led to improved performance for these companies.

According to industry sources on the 18th, LG CNS posted a consolidated operating profit of 54.4 billion KRW in the first quarter, a 123% increase compared to the same period last year. This is the highest quarterly performance ever recorded. During the same period, sales reached 754.5 billion KRW and net profit was 37.7 billion KRW, up 18% and 90% respectively from the previous year.

LG Group affiliates' cloud migration projects also contributed to the improved performance. LG CNS is pushing forward a project to migrate over 90% of the IT systems of LG Group affiliates such as LG Electronics, LG Chem, and LG Display to the cloud by 2023.

Samsung SDS recorded sales of 3.0613 trillion KRW and an operating profit of 217.1 billion KRW in the first quarter of this year. Compared to the same period last year, sales increased by 25.7% and operating profit by 26.8%. In particular, IT service business sales rose 6.4% year-on-year to 1.3684 trillion KRW. This growth is attributed to the expansion of cloud-based solution businesses such as financial cloud migration, smart factory construction, next-generation enterprise resource planning (ERP) projects, and collaboration and work automation.

Samsung SDS plans to expand its business in the IT sector focusing on cloud migration, digital maturity assessment and consulting, next-generation ERP-based external projects, cloud-based solutions (SaaS), and security for production facilities and manufacturing processes (OT).

SK C&C posted sales of 446.4 billion KRW and an operating profit of 85.2 billion KRW in the first quarter, representing increases of 5.5% and 21% respectively compared to the previous year. The improvement in sales and profits is attributed to demand for digital transformation across manufacturing, finance, telecommunications, and service industries, as well as orders for digital financial innovation projects.