Need for Diversification
It has been pointed out that the Korean government needs to expand its informatization programs, mainly in petroleum-producing countries and developed countries where companies can gain substantial profits through export. The government has carried out such programs in developing regions for 13 years.
According to the Public Procurement Service, the National Information Society Agency will set up new information access centers in Costa Rica, Honduras, Uganda and Belarus this year. Then, the number of its information access centers in developing countries will increase to 42 in 36 countries.
Under the circumstances, IT industry experts advise that the agency take aggressive action to expand its e-government exports not only in developing nations but also oil-producing countries in the Middle East and advanced economies, where Korean companies can enjoy profits capitalizing on the programs by shifting the focus of such activities from international aid to profit creation. The Korea Minting and Security Printing Corporation participated in the tender for the 89.6 billion won (US$87.4 million) electronic resident registration card project in Iraq late last year with Korean companies, but lost out to a German consortium.
In addition, major IT service providers such as Samsung SDS and LG CNS are trying to make up for their withdrawal in the domestic public procurement market by means of business in Saudi Arabia and other Middle East countries, but such efforts are bearing little fruit for now.
“A lot of global companies are in fierce competition in petroleum-producing countries that are capable of selecting service providers with their own budgets,” said an industry source, adding, “The Korean government would be well advised to have a broader and quality-oriented perspective in exporting e-government systems to go beyond aid for less-developed nations.”