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Amore Pacific, IBM Concludes Information System Outsourcing Partnership

2003-08-25

-IBM in charge of IT infrastructure operation and management -Amore Pacific to concentrate strategically on cosmetics marketing Amore Pacific (president Suh Kyung-bae) and IBM Korea (president Shin Chae-chol) concluded an information system outsourcing contract in the main conference room located on the 5th floor of the Amore Pacific headquarters building at 9:00 a.m. on 25 August 2003. IBM Korea will take over Amore Pacific’s information business such as the IT infrastructure operation and management for the next 10 years, according to the contract. IBM Korea will service Amore Pacific for the jobs of IT infrastructure operation and management, user support service, and management of data center. Amore Pacific’s IT infrastructure will be relocated to IBM data center for a more efficient task operation. Amore Pacific will now be able to apply new information technology more quickly through this strategic partnership with IBM, which is a global leader in the information industry. Through this partnership, Amore Pacific will be able to more quickly apply latest information technology, more efficiently prepare for the market changes due to technological innovation, and possess the capability to formulate new strategies, manufacture new products, and provide a faster service to meet changing market demand. Amore Pacific will also be able to concentrate on core company business, and improve productivity and competitiveness, while cutting down on overall operation cost in the long-term period by running the information system as a variable expense. Also, the firm has now laid the solid foundation for evolving into an “On Demand” corporation. In the related business circles, this case decision of Amore Pacific, a core member of the industry, to form a strategic partnership and conclude an outsourcing contract with IBM, is seen as a turning point in the overall industry as its businesses adopt the advanced global practices of the international business standards. IBM Korea will link the service representative organization of IGS and integrated consulting organization of BCS (Business Consulting Service) to provide a united support system, which can contribute to the strengthening of corporate competitiveness and business innovation of Amore Pacific.