Spending On Y2K To Soar Next Year
August 5, 1998
Businesses will devote massive sums next year to solve their Year 2000 computer problems, according to a report from the Gartner Group. Gartner predicts that the amounts involved will be withheld from budgets normally devoted to purchases of new computers and software -- putting a squeeze on those industries, which are already grappling with slowdowns in sales.
- Gartner predicts that businesses will devote 44 percent of their information technology budgets next year to fixing the Year 2000 problem.
- That compares to just 5 percent of information technology budgets last year and 30 percent this year.
- The report says that businesses are already cutting back on software purchases, since companies are concentrating on the 2000 bug and "there's nobody left to install the software."
- The Year 2000 drain will also siphon off money for computer training, for equipment needed to maintain large data warehouses and for systems support -- again, because technicians will be toiling on the 2000 glitch.
But businesses don't intend to scrimp on computer systems for company-wide tasks such as purchasing, since they often must be upgraded to be Year 2000 compliant.
Source: Paul Davidson, "Budgets Feel Sting of Year 2000 Bug," USA Today, August 5, 1998.
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