Compliance spend to increase even more
As a result of the Sarbanes-Oxley Act of 2002, enacted into law on July 30, 2002, many companies will be forced to spend considerably more on technology in the first and second quarters of 2003, which is more than they previously budgeted, according to the USA's CIO Insight magazine.
As a result of the Sarbanes-Oxley Act of 2002, enacted into law on July 30, 2002, many companies will be forced to spend considerably more on technology in the first and second quarters of 2003, which is more than they previously budgeted, according to the USA's CIO Insight magazine.
In a related research survey, CIO Insight discovered that 59% percent of finance departments are still supported by older systems, raising questions about how many of Corporate America's existing IT systems can adequately support more rigorous financial controls, data analysis and faster financial requirements.
The magazine says "Compliance with the new SEC regulations means that companies will more than likely have to overhaul their existing financial networks or upgrade software in the coming months and years to meet the SEC's new demands for more accurate, detailed and speedier filings. According to the December survey by CIO Insight, almost half of all IT systems are legacy systems and will probably need to be upgraded to meet the new SEC requirements. Findings include:
-- 45% of systems are legacy systems
-- 59% of finance departments are still supported by legacy systems
-- Almost 1/3 of IT spending in 2003 will go to maintaining and updating legacy systems
-- 64% of finance departments plan to replace their legacy systems with new ones to meet the requirements of the Sarbanes-Oxley Act.
CIO INSIGHT-SARBANES-OXLEY
A CIO is, seemingly, the senior IT person within the company.
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