Major IT Service Providers in Reorganization for Law Revision

Things are unfavorable this winter for the employees of Samsung SDS, LG CNS, and SK C&C, the big three IT service companies in Korea, as the revised Software Industry Promotion Act bans their participation in IT projects in the public sector. Although no personnel reduction has been made yet, some of them have volunteered to move to other firms, finding nothing to do in their companies. 

Samsung SDS has already withdrawn itself from the public IT service sector, changing positions of the 1,000 or so of its employees to overseas business or new growth business. LG CNS and SK C&C have recently completed their reorganization as well, to scale down business units and assign new jobs to the employees. They are denying the possibility of restructuring but are intending to reduce their workforce through attrition. 

“The current situation is a side effect of the revised Software Industry Promotion Act, which hinders normal business activities without any understanding of the software industry,” said an industry insider.