Digital service contract system, 150 billion won contract signed with 227 institutions

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1 year and 5 months since the implementation of the system
Frequently used by local governments and Ministry of Science and ICT
China accounted for more than 70% of contracts
Finding SaaS/PaaS companies is a challenge.

The contract amount for the “Digital Services Specialized Contract System” exceeded 150 billion won. It has been one year and five months since the system was implemented in October 2020, and the evaluations indicate that it has contributed to the spread of cloud in the public sector and the vitality of the national cloud industry.

According to the digital service usage support system, as of the 28th, the amount of digital service contracts signed was 151.76 billion won. The cumulative number of establishments was 227 and the number of contracts was 376. Local governments, the Ministry of Information and Communication Science and Technology and the Ministry of Education were the most frequent users, in this order.

By contractual service type, Software as a Service (SaaS) had 171 cases, Infrastructure as a Service (IaaS) had 180 cases, Cloud Support Service had 8 cases, and Convergence Service had 17 cases. Of these, 268 contracts concerned SMEs, representing more than 70% of the total number of contracts.

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The system of specialized digital services contracts was introduced to allow rapid introduction of digital services, which evolve rapidly, when needed. The Ministry of Science and ICT is responsible and it is managed by the National Information Society Agency (NIA). Currently, cloud computing services make up the bulk (78.6%).

Instead of the existing contractual method, which typically takes more than two months, a private contract or catalog contract for services selected by the Digital Services Review Board has been made possible.

The existing bidding process such as Sourcing Requests, Pre-Specifications, Tender Announcements, RFPs, Selection of Preferred Negotiators and Contracts took several months, but it has been simplified for research, selection and consultation of digital services, contract and delivery, etc. period required for a contract from the time of placing an order has been shortened to 1-2 weeks.

The catalog contract is a newly established system that allows the demanding organization to flexibly change the terms of the contract as they see fit. More than 60% of total contracts are handled by catalog contracts.

An official from the National Information Society Agency (NIA) said: “The digital service contract system has played a role in promoting the use of public digital services and revitalizing related industries.” , adding: “It has become a key system for the propagation of cloud services in the public sector.

In February, 164 services were registered in the digital services contract system. Services to large and medium-sized enterprises represent 25.6% with 42 files. Services to small and medium enterprises (SMEs) accounted for 74.4% with 122 cases, and ratings indicate that they help small and medium enterprises (SMEs).

By type of service, IaaS accounted for approximately 78.7% with 129. Discovering and drawing the record for SaaS or PaaS companies remains a challenge, as there are 28 SaaS and a single platform as a service (PaaS ).

Some argue that participation opportunities for specialized SMEs should be increased.
An executive of a small and medium cloud computing company said: “There are many cases where medium-sized companies such as System Integration (SI) or Network Integration (NI) enter into leading private contracts with their size. companies, and cloud companies. must follow their choices. We need a plan to increase business opportunities for SMEs.”

〈Table〉Specialized Digital Services Contract System Contract Status (as of March 28)

〈Table〉Digital service specialized contract system registration service (as of the end of February)

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By staff reporter Ho-cheon Ahn ([email protected])

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