While Korean companies focusing on the fourth industrial revolution, only tiny investment in IT infrastructure
Lim Seong Yeob | starleaf@ | 2018-02-02 11:13:36
Korean companies have raised their voice to strengthen "digital transformation" in the era of the "Fourth Industrial Revolution", but they are still stingy in investment in information technology (IT).
According to KRG`s 2018 domestic IT investment trend report released by Market Research Agency (KRG) on February 1, 40% of 250 domestic companies with sales exceeding KRW 50 billion will increase their IT budget. The IT budget included in this survey is the actual budget, excluding IT staff labor costs. It refers to the budget that the company invested in the annual IT area, including HW, SW, outsourcing and maintenance costs.
Financial, logistics and logistics industries are more willing to invest in IT than other industries. 56% of financial companies and 46% of logistics companies said they would increase their investments from the previous year. However, 47.5% of surveyed companies said that they will maintain the previous year level, indicating that the investment environment of IT companies is still conservative. This is in contrast to the fact that 63% of global companies plan to increase IT investment.
The average IT budget of Korean companies is 4.1886 billion won, and companies said they plan to invest 0.6% of total sales in IT. Only 1.1% of information, communication and media industries and 1.0% of service industries have exceeded 1% by industry. Distribution, logistics (0.5%) and finance (0.9%) companies accounted for less than 1% IT investment. In particular, IT investment ratio in the manufacturing sector was only 0.4%.
Global companies, on the other hand, are spending 3.3 % of their revenues on IT, according to Gartner.
According to market research firm Tech Pro Research, 24% of global companies plan to invest more than 10% of total sales in IT sector.
Meanwhile, the ratio of IT investment to sales by domestic companies is less than one fifth of global companies. By industry, global financial institutions are investing 6.3 times, which is seven times that of domestic financial institutions. Global IT and media companies are investing 5% of their sales, which is five times that of domestic companies, in the IT sector. It is significant that the result of this aggregation can be used as a basis to break the prejudice of `IT over investment` which is widespread among Korean companies.
Kim Chang-hoon, vice president of KRG, said, "There has been a lot of talk that IT investment is excessive in Korea but it is not able to invest effectively because it cannot invest efficiently." However, it is confirmed that there are many gaps. "
Especially, it is pointed out that the absolute investment size of domestic companies needs to be expanded to utilize innovation technologies related to the fourth industrial revolution such as Big Data, Cloud Computing, AI and IoT to enhance corporate competitiveness.
Mr. Kim pointed out, "In terms of investment efficiency, quantitative investment is not the most important, but it requires more aggressive investment now." To achieve the desired digital transformation, companies must make a preemptive investment."
By Lim Seong Yeob starleaf@
[ copyright ⓒ The Digitaltimes ]
According to KRG`s 2018 domestic IT investment trend report released by Market Research Agency (KRG) on February 1, 40% of 250 domestic companies with sales exceeding KRW 50 billion will increase their IT budget. The IT budget included in this survey is the actual budget, excluding IT staff labor costs. It refers to the budget that the company invested in the annual IT area, including HW, SW, outsourcing and maintenance costs.
Financial, logistics and logistics industries are more willing to invest in IT than other industries. 56% of financial companies and 46% of logistics companies said they would increase their investments from the previous year. However, 47.5% of surveyed companies said that they will maintain the previous year level, indicating that the investment environment of IT companies is still conservative. This is in contrast to the fact that 63% of global companies plan to increase IT investment.
The average IT budget of Korean companies is 4.1886 billion won, and companies said they plan to invest 0.6% of total sales in IT. Only 1.1% of information, communication and media industries and 1.0% of service industries have exceeded 1% by industry. Distribution, logistics (0.5%) and finance (0.9%) companies accounted for less than 1% IT investment. In particular, IT investment ratio in the manufacturing sector was only 0.4%.
Global companies, on the other hand, are spending 3.3 % of their revenues on IT, according to Gartner.
According to market research firm Tech Pro Research, 24% of global companies plan to invest more than 10% of total sales in IT sector.
Meanwhile, the ratio of IT investment to sales by domestic companies is less than one fifth of global companies. By industry, global financial institutions are investing 6.3 times, which is seven times that of domestic financial institutions. Global IT and media companies are investing 5% of their sales, which is five times that of domestic companies, in the IT sector. It is significant that the result of this aggregation can be used as a basis to break the prejudice of `IT over investment` which is widespread among Korean companies.
Kim Chang-hoon, vice president of KRG, said, "There has been a lot of talk that IT investment is excessive in Korea but it is not able to invest effectively because it cannot invest efficiently." However, it is confirmed that there are many gaps. "
Especially, it is pointed out that the absolute investment size of domestic companies needs to be expanded to utilize innovation technologies related to the fourth industrial revolution such as Big Data, Cloud Computing, AI and IoT to enhance corporate competitiveness.
Mr. Kim pointed out, "In terms of investment efficiency, quantitative investment is not the most important, but it requires more aggressive investment now." To achieve the desired digital transformation, companies must make a preemptive investment."
By Lim Seong Yeob starleaf@