The InformationWeek -- Blogs


Topics:   Compliance

  • Email this page E-mail this page
  • |  Print this page Print this page
  • |  Bookmark and Share
  • |  icon
  • | 

Prediction No. 2: Manpower Reductions


Posted by Mitch Irsfeld, Nov 30, 2005 03:21 PM

With more and more manual processes associated with Sarbanes-Oxley compliance activities being automated through technology, we expect the people costs for SOX to fall off dramatically in 2006.

This is actually a pretty safe bet since it will be the third year that large public companies have had to manage SOX compliance. One could assume that everyone is getting more adept, including the independent auditors, so manpower costs should go down as a percentage of overall costs associated with SOX.

But automation will be the key factor in driving down the man hours. AMR Research recently surveyed more than 300 IT and business managers and found that SOX will drive and increase in technology spending in 2006, while actual headcount numbers dedicated to compliance efforts will decrease.

The AMR report found that overall SOX compliance spending will be approximately $6 billion, essentially unchanged from the $6.1 billion expected to be spent in 2005. But it looks like more of that money will be earmarked for technology next year as the study found that 2006 headcounts for SOX compliance are expected to fall by 8 percent

Meanwhile, the SOX technology allocation will grow by more than 13 percent in real dollars over 2005 numbers, according to AMR.

That can only mean one thing: Companies are substituting sustainable automated processes for manual approaches to compliance management. And the good news is that such automation will also reduce the manual processes that auditors will need to perform and help drive down auditing costs as well.

Pat yourselves on the back.

« Google's "Space" Is (Mostly) Online | Main | Daily News Podcast, Thursday, December 1 »



Sign Up Now
For InformationWeek News Alerts




This is a public forum. United Business Media and its affiliates are not responsible for and do not control what is posted herein. United Business Media makes no warranties or guarantees concerning any advice dispensed by its staff members or readers.

Community standards in this comment area do not permit hate language, excessive profanity, or other patently offensive language. Please be aware that all information posted to this comment area becomes the property of United Business Media LLC and may be edited and republished in print or electronic format as outlined in United Business Media's Terms of Service.

Important Note: This comment area is NOT intended for commercial messages or solicitations of business.


 
 

  1. Sequential Programming: Like Eating Peas with a Straw.
  2. Biomolecular device using self-assembled DNA nanostructures?
  3. Coreinfo v2.0: A Simple Utility to Understand the Manycore Complexity in Windows
Join The InformationWeek Group On LinkedIn


                           


  1. More Reasons Why Linux Misses The Desktop
  2. Too Much Netbook For Too Litl?
  3. Motorola Explains Why Droid Doesn't Have Multi-Touch
  4. Sprint And T-Mobile Headed The Wrong Direction

  1. Hadoop Crunches Web-Sized Data
  2. Microsoft Acquires SourceGear's Teamprise Unit
  3. Gartner Downgrades SaaS Forecast
  4. Google To Acquire AdMob
  5. RIM Boosts BlackBerry Developer Tools
  6. Microsoft: Windows 7 Malware Threat 'Sensationalized'

 
  Ars Technica
Boing Boing
Channel 9 Forums
CRN Blogs
Dr.Dobb's Portal: Blogs
Engadget
Gizmodo
GrokLaw 		  Lifehacker
Schneier on Security
Slashdot
TechCrunch
Techdirt
Techmeme
Valleywag
  DECEMBER 2008
NOVEMBER 2008
OCTOBER 2008
SEPTEMBER 2008
AUGUST 2008
JULY 2008
JUNE 2008
MAY 2008 		  APRIL 2008
MARCH 2008
FEBRUARY 2008
JANUARY 2008
DECEMBER 2007
NOVEMBER 2007
OCTOBER 2007
SEPTEMBER 2007