To: M. Frank Greiffenstein who wrote (7258 ) 12/13/1997 2:42:00 PM From: M. Frank Greiffenstein Respond to of 31646
New Y2K survey... ITAA's Year 2000 Outlook December 12, 1997 Volume 2, No. 46 Published by the Information Technology Association of America, Arlington, VA Survey Shows Y2K "Un-Progress" in F500 Results of a soon to be released survey show businesses representing as much as 55 percent of U.S. GDP are not presently implementing a Y2K plan. Howard Rubin, who chairs the Computer Science Department at the City University of New York's Hunter College and is CEO of Rubin Systems, Inc., conducted the study for Cap Gemini TransMillennium Services. Full survey details are scheduled for release next week. Based on the polling of over 700 enterprises and the responses of approximately 100 Fortune 500 companies, the study finds that two out of three firms do not have a detailed Y2K plan in place. Only one in five firms are in the process of implementing such a plan. "I'm shocked at the level of unpreparedness," Rubin said, noting, "It's `un-progress.'" Year 2000 appears to be a learning experience for many corporations. The survey concludes that 77 percent of respondents have been forced to change their approach to performing this work. Rubin says companies have been disappointed in their hope to find a Y2K silver bullet. Two-thirds said that tools do not meet their expectations; approximately 24 percent said tools do perform as expected. The conversion is more labor intensive than many imagined, he says, with work flowing back in-house. Those who say they will outsource their assessment and conversion efforts has declined 17 percent, from 87 percent last April to 70 percent today. The number of companies looking to staff up has jumped from 45 percent to 72 percent, although 90 percent reported difficulties in finding the right people. The actual work involved in Year 2000 conversions may need an image overhaul. Seventy-two percent of those in Rubin's survey called it "boring"; only four percent classified it as "exciting." The study also found that companies utilizing outside contractors still wind up staffing projects with their own people-approximately one-third come from internal sources. Cooperation and information exchange between companies and vendors registered "weak" in the survey results. At least one urgency measure did seem to enjoy an up-tick. Over 80 percent of respondents say they underestimated the amount which will be spent on Y2K. Almost 75 percent of respondents said they will spend between 21 and 30 percent of IT budgets on Year 2000 programs. Sixty percent of the bucks will go for mainframe fixes, 20 percent to network environment work, eight percent to desk tops, ten percent to Y2K management, and two percent elsewhere. What's it all mean? "I'm not an alarmist," Rubin says, "but I don't have a warm and fuzzy feeling [about these numbers].