Y2k computer bug economic impact
Michael Erbschloe
YEAR 2000 COMPUTER BUG ECONOMIC IMPACT TO EXCEED $2 TRILLION.
The millennium bug is going to much more expensive than people realize
or at least more than has been previously estimated. Technology
Management Reports, a San Diego based research firm, projects that the
overall world-wide economic impact of dealing with computer related year
2000 problems will exceed $2 trillion (U.S. dollars).
This projection includes the cost of rewriting existing programs, the
acquisition and installation of replacement systems, and productivity
lost due to system downtime and business interruption caused by failing
systems not in year 2000 compliance.
COSTS TO FIX SYSTEMS IS RISING
The costs associated with exterminating the bug will increase as the
year 2000 comes closer. Technology Management Reports estimates that
during the second half of 1997 that it is costing about $1.30 per line
of code to bring programs into compliance. The cost per line of code is
projected to increase as follows:
First half of 1998: $1.75 per line of code
Second half 1998: $2.35 per line of code
First half of 1999: $2.95 per line of code
Second half 1999: $3.65 per line of code
First half 2000: $4.00 per line of code
Consultants are busy with clients and this is resulting in year 2000
consulting fees climbing to about $1,500 per day. By the second half of
1998 top notch consultants will be drawing over $2,000 per day and
during 1999 consulting fees will reach about $2,500 per day.
LITIGATION EXPECTED
In addition to rising costs, year 2000 computer related litigation will
be wide-spread. Litigation is expected between year 2000 consulting
firms and their clients. Litigation is also expected between stock
holders and management of firms that experience negative economic impact
of system failure because management failed to bring their information
and manufacturing systems into year 2000 compliance.
For more information on the year 2000 computer problem see the following
white papers available at the Technology Management Reports web page:
http://www.infohaus.com/access/by-seller/Technology_Management_Reports
Y2K Get organized to beat the bug, and
Y2K Legal Ramifications
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Michael Erbschloe, Research Director, TECHNOLOGY MANAGEMENT REPORTS
U.S. telephone: 619-525-3434
http://www.infohaus.com/access/by-seller/Technology_Management_Reports
http://www.fenet.co.uk/tmruk