Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : TAVA Technologies (TAVA-NASDAQ) -- Ignore unavailable to you. Want to Upgrade?

To: James Strauss who wrote (15358)	4/23/1998 10:23:00 PM
From: jwk	Respond to of 31646

From NBR quote.com "Agent For Performance"-Roger Siboni of KPMG Peat Marwick LINDA O'BRYON: Well, analysts predict as many as 3 percent of the world's businesses could fail because of disruptions caused by the Year 2000 problem. At a recent Business Week magazine forum called, "Agent For Performance", Roger Siboni, deputy chairman of KPMG Peat Marwick, talked to Diane Eastabrook about preparing for Y2K. And about his own company's global restructuring. DIANE EASTABROOK, NIGHTLY BUSINESS REPORT, CORRESPONDENT: There have been a couple of surveys out recently that estimate about 3/4s of the businesses here in the United States that have been surveyed, have a Y2K plan in place. Do you find that most companies here in the United States have some sort of a plan in place, to deal with Y2K? ROGER SIBONI, DEPUTY CHAIRMAN, KPMG PEAT MARWICK: Well, I think that in the United States, there is certainly a very, very broad awareness that has been built around Year 2K. Something that really could not have been said a year ago. But still, the level of awareness and the level of activity to comply with Year 2K, varies tremendously. Some analysts predict that as many as 3 percent of all companies around the world will fail because of not being compliant with Year 2K and fundamental business systems shutting down. So, the awareness is high. The plans are there. But, there is 444 days left to deal with the problem. And the question is, whether or not compliance can be achieved in that period of time. EASTABROOK: There has been some speculation that most of the companies that are not prepared at this point for Y2K, are small or mid sized companies. Small banks, small insurance companies. Do you find that to be the case? SIBONI: From a percentage point of view, clearly, larger companies. A greater percentage of larger companies are both aware and addressing the Year 2K problem. The percentage of companies that are dealing with it, diminishes as the companies become smaller. There is also an international dimension to it. I would say that the awareness of Year 2K is significantly higher in the United States than it is in, say, Europe, the Far East, or Latin America. And, the problem is further compounded in places like Europe-in that they not only have to deal with this looming year 2K issue from an information system point of view. But they also have to deal with the EMU and the standardization of currency on an Pan- European basis the same time they're resolving the Year 2K problem. So it's a challenge on top of another challenge. EASTABROOK: If a supplier of yours does not have a plan in place and that has a negative impact on your business could you be held liable for that? SIBONI: That's a real interesting question. And one that's being hotly debated right. And I would say that the kind of things that you're seeing go on right now range from people selling insurance to mitigate against that to requirements that companies are making to anybody that's supplies them that they're Year 2K compliant. And so the question comes up as to how well have you absolved your responsibility by simply getting assurance from someone that they're Year 2K compliant. And at the same time how much risk have you just assumed by assuring someone that you will be Year 2K compliant. So this whole area is one that is really getting a lot of attention. And there's some initiatives now that are emerging. One in California that I'm aware of that is proposing to limit Year 2K litigation exposure because some pundits estimate that the amount of litigations surrounding the Year 2K could top $1 trillion. EASTABROOK: Your company is in the middle of a major global restructuring plan. Could you tell us where you're at at this point? SIBONI: We're entering into a world that is significantly more technology dependent and is significantly more global. And we believe that in order to be a winner in this very, very competitive world of professional services you have to be able to deliver all of your products and solutions on a global basis. And while KPMG, like many organizations, is blessed by having an immense global network of resources we have to rise beyond country by country solutions to client problems and approach all of our significant client issues on a global basis. EASTABROOK: Do you expect to see more consolidation within your industry? SIBONI: I don't see another big 6 merger on the horizon for example. But I do think that consulting organizations where we're seeing the most growth in our business, 60 percent this year. I think consulting organizations are going to continue to combine and grow through consolidation. EASTABROOK: Mr. Siboni, thank you very much for joining us today. SIBONI: Thank you.