On May 27th, Samsung SDS, a global ICT service provider, signed a contract with the Inland Revenue Department for the project for "automation of the Inland Revenue Department of Sri Lanka" worth $9.3 million. Overall, Sri Lanka is going digital and Samsung will be in the middle of it all. This project, which follows the 1st phase project of implementing the administration network for 325 government agencies of Sri Lanka ($14.5 million) that was conducted by SDS in 2006 and the 2nd phase project of implementing the administration network for additional 150 government agencies ($6.36 million) that has been carried out since 2010, will implement a data center, a disaster recovery (DR) center, and basic automation facilities for Sri Lanka's Inland Revenue Department headquarters and 19 branches.
What's in the Bag
Samsung SDS states that its experience in the first and second phase projects of implementing the government administration network, which were financed by the Economic Development Cooperation Fund (EDCF), the Official Development Assistance (ODA) fund of the Korean government, played a critical role in the successful signing of the project.. In particular, given that this project is supported by the Asian Development Bank (ADB), which provides a considerable amount of fund for establishing IT infrastructure in developing countries in Asia, Samsung SDS's winning of the contract clearly shows that Samsung is now expected to be one of the best in the field. Its technical capabilities in executing various global projects are now recognized by the rest of the world. Dr. P.B. Jayasundera, the Secretary to the Treasury of Sri Lanka commented, "The completion of this automation project is expected to make processing of tax-related works faster and facilitate information exchange between the headquarters and branches. Ultimately, this will lead to effective provision of services for citizens."
Samsung Expresses Further Optimism Towards Future
There is great possibility that this project will enable Samsung SDS to win additional contracts including the project of implementing the tax information system and finance system in Sri Lanka, which is also funded by the ADB. Samsung SDS plans to make continuous efforts to take on more projects by cooperating with not only the Korean Embassy in Sri Lanka but also the Ministry of Strategy and Finance and the Export-Import Bank of Korea which provide the EDCF. Based on this success, Samsung SDS will continuously establish sales channels in Sri Lanka, and actively discover similar business opportunities in neighboring countries including Bangladesh, Pakistan, and India. CEO In Kim of Samsung SDS said, "Samsung SDS will continue to implement projects supported by international development banks including the ADB and the World Bank, and step up its efforts to enter overseas markets."
Beginning of the Expansion
In the meantime, Samsung SDS signed a contract on April 12th for the Integrated Security System for all KOC facilities worth $440 million (KRW 500 billion), which is the largest project in the history of the ICT service industry in Korea. Samsung regards the year 2010 as the starting point of expanding the global market and plans to increase the share of revenue from global business to 20%.