Hey there is a bad news for the employees of Samsung SDS, LG CNS, and SK C&C , the big three local IT service companies because they have suffer from the revised Software Industry Promotion Act, as its new and revised version hinder or adversely affect their normal business activities. It adversely affects all their junior and senior staff members.
According to the revised Software Industry Promotion Act, the participation of the three big IT service companies in Korea i.e. Samsung SDS, LG CNS, and SK C&C in IT projects in the public sector is banned. This makes things unfavourable this winter for their employees.
The company has not reduce the no. of employees yet, but some employees are volunteered to move to other firms, as company finds no work for them, nothing to do in their companies, due to this banned on their level of participation.
To overseas business or new growth business, Samsung SDS is changing positions of the 1,000 or so of its employees. The company has already withdrawn itself from the public IT service sector. To scale down business units and to provide new jobs or employment opportunity to their employees, the two companies LG CNS and SK C&C have recently completed their reorganization as well. Both the companies don’t want the restructuring, thus they are denying the possibility of restructuring but with this are intending to reduce the no. of employees working in their companies through attrition.
According to an industry insider, “The current situation is a side effect of the revised Software Industry Promotion Act, which adversely affects normal business activities without any understanding of the software industry”.