Global Software Industry
Managing IT Governance & Compliance
Regulations and mandates such as Sarbanes-Oxley, Basel II, the EU Data Protection Directive, HIPAA, and International Accounting Standards have forced profound changes in business policies and processes. U.S. companies will spend $5.5 billion in 2004 to comply with Sarbanes-Oxley. European banks will spend almost $4 billion in IT over the next two years to comply with Basel II.
In Charge of Change: IT executives are adopting IT governance strategies and software to manage the priorities, processes, and people of ITgaining visibility and control over their compliance initiatives. This enables them to:
· Ensure IT compliance initiatives are prioritized and managed on time and on budget.
· Manage benefits, costs, resources, and business objectives within a transparent process.
· Mitigate the risk and costs of business process and application changes.
Enabling Strategic Sourcing
There is a seminal shift from outsourcing IT for cost reduction to "strategic sourcing" for business value. It is estimated that global outsourcing deals will rise 30 percent by 2005, and that the global business process outsourcing market will reach $130 billion in 2004. Strategic sourcingthe optimal mix of in-house, outsourced, and offshore IT projectsrepresents a profound opportunity for IT to maximize business value.
In Charge of Change: IT executives are adopting BTO software and services to optimize IT prior to outsourcinggaining visibility and control over both in-house and outsourced business processes and teams. This enables them ...
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...nearly identical across national boundaries.
· Emerging because of the increasing influence of multinational corporate customers who seek consistency across their dispersed operations.
· Globe-traveling consumers demand products and services regardless of location.
· Global products can provide the basis for economies of scale.
Quality
· Firms benchmark their operations against "world class" standards.
· Iinterdependence increases between domestic and international operations requires a cross-border approach to quality improvement.
· In many industries, advances in information technology already permit a defective product to be traced back to a particular worker, machine, or supplier.
References
§ www.findarticles.com
§ www.google.com
§ www.computerworld.com
§ www.dataquest.com
§ www.forbes.com
§ Business World
§ Business Today
§ Computers Today
Sarbanes-Oxley Act, which contains 11 sections, was originally created by Senator Paul Sarbanes and Representative Michael Oxley in response to the several exposed accounting scandals, including WorldCom and Enron as the most prominent examples. As a result of these accounting scandals being exposed one after another, the confidence that investors had put in the capital markets collapsed overnight along with those companies that engaged in huge frauds. Sarbanes-Oxley Act of 2002 had been passed to redeem the reputation of the markets. With its stated purpose, which is “to protect investors by improving the accuracy and reliability of corporate disclosures,” SOX Act came into effect in 2004. However, the deadlines of compliance have been extended several times due to the significant costs incurred by companies’ compliance of the SOX Act. In addition to the dollar amount required to spend, another real cost that cannot be ignored. As stated by Peter Bible, the CAO of General Motors Corp, “having ...
In 2002, Congress passed the Sarbanes-Oxley Act (SOX) to strengthen corporate governance and restore investor confidence. The act’s most important provision, §404, requires management and independent auditors to evaluate annually a firm’s internal financial-reporting controls. In addition, SOX tightens disclosure rules, requires management to certify the firm’s periodic reports, strengthens boards’ independence and financial-literacy requirements, and raises auditor-independence standards.
In many cases outsourcing has proven to be beneficial for businesses. It can help a business’s management by allowing executives to focus on the core structure of the firm rather than every specific element. Production, manufacturing, or additional servic...
Companies will have to be more transparent with clearly defined, centralized, easily manageable departments, which are cost effective and efficient. For example, one client has determined that 80% of its payroll business processes are the same on a global basis – so they are centralizing their payroll operations to optimize that 80%. . .[Also] Pressure will develop to set global standards. As barriers fall between cross-border interaction, global standards will make the exchange of information and the execution of company policies, standards and objectives easier (“What
Iskandar, M., & Salleh, N. A. M. (2010). IT Governance in Airline Industry: A Multiple Case Study. International Journal of Digital Society, 1(4), 308-314.
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