Business Services Industry
Compliance costs to triple over two years.(MANAGER'S NOTEBOOK)
Business Communications Review, February, 2006
Enterprise spending for technologies related to financial compliance and corporate governance could account for as much as 15 percent of the typical IT budget this year, three or more times the share that was seen in 2004, according to Gartner. These compliance costs will thus drain money from discretionary IT spending, the research house predicts.
"Projects that were not aligned with compliance and corporate governance were delayed or cancelled, and SOX [Sarbanes-Oxley] efforts inhibited the purchase of large amounts of software related to building new technologies and deploying new projects," said French Caldwell, Gartner research VP. "However, by the second half of 2005, increased interest in IT solutions to ease the burden of compliance has begun to...
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