Gartner Says Enterprises Implementing Sarbanes-Oxley "Quick Fix" Solutions in 2004 Will No Longer Use Those Systems by the End of 2005
Sarbanes-Oxley Compliance One of the Issues to Be Examined During Midsize Enterprise Summit, April 18-21 in Nashville
STAMFORD, Conn. April 14, 2004 — Enterprises that purchase Sarbanes-Oxley targeted solutions in 2004 will retire or replace those systems by the end of 2005, according to Gartner, Inc.
"Enterprises that choose one-off solutions for each regulatory challenge that they face will spend 10 times more on compliance projects than their counterparts that take a proactive approach," said French Caldwell, research vice president at Gartner. "Although there are times when adopting a "quick and dirty" solution may be necessary to meet deadlines, enterprises should avoid committing too much time, effort or data to such systems."
Gartner will provide additional analysis on the impact Sarbanes-Oxley compliance will have on enterprises during Gartner's Midsize Enterprise Summit East 2004, April 18-21 at the Gaylord Opryland Resort in Nashville, Tennessee. The Summit will include nearly 500 IT decision makers, more than 60 sponsors and vendors, as well as approximately 30 Gartner analyst presentations.
Gartner analysts recommend that 50 percent of a company's Sarbanes-Oxley budget be allocated for implementation and remediation issues, including directors' and officers' insurance and increased consulting fees. Thirty percent of the budget should be spent for internal analysis, including redundant audits for the next three quarters. The remaining 20 percent of the budget should be spent on software upgrades and new purchases.
"While many large companies see Sarbanes-Oxley compliance as a way to improve risk management and to rationalize IT management, midsize enterprises are less likely to see the opportunity and return on investment (ROI) in Sarbanes-Oxley. That's a mistake," Caldwell said. "Focusing just on compliance misses the big picture of improving corporate governance and transparency that will lead to better business decisions and real ROI."
Gartner defines the traditional midsize enterprise market as companies with 100 to 999 employees or revenue between $50 million and $500 million, and larger midsize enterprises as companies with revenue of $500 million to $1 billion.
Midsize Enterprise Summit is the largest midmarket-focused event in the IT industry. Attendees participate in a series of private boardroom appointments, world premiere presentations, peer exchange workshops, SummitView vendor forums, and one-on-one meetings at a showcase of exhibits.
Midsize Enterprise Summit will also take place on the West Coast, September 19-22 in San Diego. The Summit will be presented to the midmarket community in Europe, June 16-18, in Dublin, Ireland. Midsize Enterprise Summit is produced by Gartner's Vision Events. For more information, visit www.midsizeenterprise.com or call 877-619-7965.
Further in-depth analysis and guidance on compliance is available to subscribers of the Gartner Compliance Advisory Service. This service provides exclusive Sarbanes-Oxley initiative support, including comprehensive how-to methodologies and frameworks, project management tools, example case studies and targeted discussions with subject matter experts to support specific compliance initiatives. With an exclusive research agenda targeted at meeting the unique needs of the audit or compliance committee inside publicly traded companies, the Gartner Compliance Advisory Service enables organizations to align their IT, finance and business units and strategize, plan, implement, manage and measure SOX initiatives successfully. For more information, go to www.gartner.com/compliance or e-mail compliance@gartner.com.
About Vision Events
Vision Events, a Gartner company, is a leading producer of highly focused, business-intensive events that emphasize one-on-one meetings and guaranteed private boardroom appointments between vendors and their key customers and prospects. Each event, domestic and international, is designed to enable leading and emerging technology vendors to establish new alliances and build new business with high-level decision makers who participate by invitation only.
About Gartner:
Gartner, Inc. is the leading provider of
research and analysis on the global information technology industry. Gartner serves more
than 10,000 clients, including chief information officers and other senior IT executives
in corporations and government agencies, as well as technology companies and the
investment community. The Company focuses on delivering objective, in-depth analysis
and actionable advice to enable clients to make more informed business and technology
decisions. The Company's businesses consist of Gartner Intelligence, research and
events for IT professionals; Gartner Executive Programs, membership programs and peer
networking services; and Gartner Consulting, customized engagements with a specific
emphasis on outsourcing and IT management. Founded in 1979, Gartner is headquartered in
Stamford, Connecticut, and has 3,700 associates, including more than 1,000 research
analysts and consultants, in more than 75 locations worldwide. For more information,
visit www.gartner.com.
