LG CNS, HP team up for China business

Han Ji-won, right, head of LG CNS’s China business, shakes hands with William Poon, general manager for Hewlett-Packard services in Greater China, after the companies inked a non-binding memorandum of understanding for business collaboration in China at HP’s China headquarters, Monday. / Courtesy of LG CNS

LG CNS, a local provider of technology solutions, said Monday that it has struck a business tie-up with U.S.-based Hewlett-Packard (HP) to boost the Korean firm’s profile in China.

In a statement, LG said it signed a non-binding memorandum of understanding (MOU) with HP for closer collaboration on smart-related businesses such as smart factories, smart green cities and mobile-linked ventures.

It expects that the deal will help the firm use HP’s stronger marketing channels, there, in return for helping the American technology giant acquire some of its key solutions technologies.

LG CNS is gradually shifting its sights to the Chinese market after it announced its Vision 2020 plan two years ago. The information and technology arm of LG Group is exporting more of its advanced in-house solutions, according to the statement.

“The partnership will help LG CNS find profitable business models as we can use HP’s stable marketing channels,’’ said head of the company’s public relations team Oh Sea-chun.

LG CNS is aiming to create 1.5 trillion won in revenue from China by the end of 2020, Oh said.

As part of desperate efforts to save its bottom line, HP has been intensifying its efforts in information and technology sourcing with impressive results so far in China.

By leveraging its ties with technology consultancy Accenture, it has been able to clinch significant deals there.

HP services are expecting to register “between 30 and 50 percent annual revenue growth from accelerated outsourcing initiatives from China,’’ according to HP officials. <The Korea Times/Kim Yoo-chul>

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