IBM announces expanded outsourcing relationship with Amore Pacific

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March 29, 2005 - 29 Mar 2005: IBM Korea today announced that it is expanding its outsourcing relationship with Amore Pacific, a leading provider of healthcare and beauty products across Korea and Asia Pacific.  Amore Pacific's CEO, Kyung-Bae Suh, and IBM Korea's President, Hwi Sung Lee, today signed the Application Management Services (AMS) contract, which takes Amore Pacific one step further in its strategy to concentrate on its core competencies, while it evolves into a world-class company based on strong brand power and customer-driven services. 

Under the eight-and-a-half year agreement, IBM Korea will maintain, service and manage Amore Pacific's application portfolio which includes Amore's Enterprise Resource Planning (ERP) application, e-Biz application, collaboration and web site applications, and in house applications and software.  IBM will establish a company-wide IT architecture that will support Amore Pacific's business strategies and help enable them to respond quickly to market changes.

This agreement deepens Amore Pacific's alliance with IBM Korea, contracted in August 2003 to operate and manage Amore Pacific's IT infrastructure in an outsourcing agreement worth US$100 million over 10 years.  Under the original outsourcing agreement, IBM Korea provides and manages IT infrastructure services and user support.  Amore Pacific moved its IT infrastructure to the IBM e-business Hosting Center in the Seoul metropolitan area to ensure smooth service delivery and allow Amore Pacific to leverage the Center's on demand operating environment, tools and processes. IBM provides an integrated support system through IBM Global Services and Business Consulting Services. 

The relationship with IBM has enabled Amore Pacific to reduce IT costs while improving IT capabilities through automation, improved operational management and consolidation of IT infrastructure. 

"In line with our efforts to make Amore Pacific a global leader, we are concentrating on strengthening our core capabilities," said Kyung-Bae Suh, President & CEO of  Amore Pacific. "By expanding our partnership, we will realize sustained growth.  The on demand environment will help us focus on our core business and respond quickly to market changes." 

Hwisung Lee, general manager of IBM Korea, said, "Our partnership with Amore Pacific has enabled them to bring together their business know-how with our deep understanding of information technology and its application in solving business problems.  IBM is a valued adviser and partner, contributing to our clients' business innovation and growth in the long term."

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