Businesses Have Far To Go On Y2K Problem
June 5, 1998
How far has the private sector gone in fixing its computers so they won't fail on January 1, 2000? Not far enough, according to a study of reports filed with the Securities and Exchange Commission. The review conducted by Triaxysis Research concludes:
- Progress by top corporations "falls considerably below levels necessary to avoid business disruption."
- Fewer than 60 percent of the firms studied have completed preliminary assessments to determine the extent of their problems.
- The nation's 250 largest corporations will spend at least $37 billion making corrections -- a figure which suggests the Federal Reserve estimate of $50 billion to fix both business and government computers is far too conservative.
- Fifty-eight percent of the companies reviewed did not even disclose year 2000 costs.
Some corporate leaders have reportedly admitted privately that acknowledging awareness of problems now could increase their exposure to legal liability later.
Source: M.J. Zuckerman, "Businesses Fall Short in Fighting Year 2000 Glitch," USA Today, June 5, 1998.
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