• Title/Summary/Keyword: Restriction on participation of large corporations

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A Study focused on how Korean IT Service Firms were financially impacted since the restrictions on participation of large firms

  • Choi, Hyun-Taek;Ryu, Gab-Sang
    • The Journal of Korea Institute of Information, Electronics, and Communication Technology
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    • v.12 no.4
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    • pp.395-405
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    • 2019
  • The government has strengthened the system of restricting participation of large corporations to limit participation in national information system construction projects and to increase participation of SME software companies. This study analyzes the financial performances of small and medium sized IT firms in Korea three years prior and 3 years after the restrictions on participation of large firm. A sample of 121 small and medium-sized IT services firms were classified into 3 groups and statistical techniques (T-test and one-way ANOVA) were used for the purpose of the analysis. In the three years after the restriction of participation of large corporations, the total assets and sales of the medium and small IT service firms were positive, but the operating profit and net profit were negative. There were many worries about the introduction of the restriction on the participation of large corporations, but many were stabilized. However, the negative impact was more pronounced for SMEs. Therefore, the reduction effect of SME IT service companies is different from the first legislative purpose of enforcing the restriction system of large enterprises, so we propose to revise the policy.

Research for improving quality of SI(System integration) development project (시스템 통합(SI) 구축 사업 품질 향상을 위한 연구)

  • Kim, Seok-Kwan;Ryu, Gab-Sang
    • The Journal of Korea Institute of Information, Electronics, and Communication Technology
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    • v.11 no.3
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    • pp.215-220
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    • 2018
  • This paper limited the participation of large corporations in the mass information market by revising the Software Industry Promotion Act in order to increase business opportunity, equality of opportunity, and capacity building for small and medium sized IT companies. However, it is a fact that the medium and small SW companies have insufficient business capacity and expose various problems such as quality degradation of public information business, inadequate risk management, and deterioration of schedule management. In order to solve this problem, this paper derived the factors of quality deterioration in the system integration project and proposed to carry out the project by using some activities of VISUALIZATION, rigorous test management and Agile Methodology as a solution. Applying these measures to healthcare IT projects developed by midsize / small-sized IT companies has improved communications, improved quantitative progress management and improved project visibility. In addition, it contributed to minimizing defect resolution time, improving the requirement coverage ratio, and shortening unnecessary meeting time.