Feeds

IT voices drowned in corporate governance rush

Ignore techies at your peril

  • alert
  • submit to reddit

Security for virtualized datacentres

Companies are ignoring IT personnel in project planning, despite the swathe of corporate governance regulations driving a huge investment in IT.

Gartner estimates that European businesses will spend $2bn on IT projects supporting compliance with Basel II requirements. Ask yourself this: would you spend that kind of money without speaking to an expert?

According to Economist Intelligence Unit research, this is exactly what is happening. An EIU survey shows that only 27 per cent of senior executives ask for input from their IT departments when planning major deployments.

This may be an age-old problem, but the consequences are more significant than ever. Failure to meet new regulatory requirements could result in jail time for chief financial officers, so why are they so reluctant to speak to the techies?

According to Ayman Gabarin, European VP at process management firm Changepoint, the communications gap between IT and the board means that IT is seen as a tactical, as opposed to strategic, department. He argues that a cultural shift in the IT department is required: if IT can start thinking about itself like a business, it will be able to speak in the language of the board and will have more influence.

The EIU research, based on an online survey of 116 senior executives, found a mismatch between the expectations of the board and the reality of implementation. While more than 60 per cent of respondants felt confident they were on track to meet compliance deadlines for regulations such as Basel II, IFRS and Sarbanes Oxley, similar numbers said that it was difficult to find out exactly what they were being told to comply with.

"You have to view these results with a certain amount of scepticism," said the EIU's Gareth Lofthouse. He argues that the barriers to compliance the executives have identified suggest that their confidence is misplaced.

Peter Redshaw, an analyst at Gartner, explains: "The situation is paradoxical: companies could approach compliance as a series of separate IT projects, but they would find themselves repeating and even undoing a lot of their work. Identifying all the common elements in the various regulations is a big task and the IT function is certainly feeling the strain," he said. Failure to consult IT on the best approach could mean a lot of wasted effort.

"IT is the bedrock and the foundation on which companies will build their compliance. But capturing IT best practice is difficult because people working on successful projects rarely have time to stop and record what worked. And if they are only just starting, they are in real trouble." ®

Related stories

SAS 9 on intelligence-gathering mission
Michael Dell to relinquish CEO title, command of brain
Worldcom allowed once more to bid for Federal contracts
McNealy slams Sarbanes-Oxley

Providing a secure and efficient Helpdesk

More from The Register

next story
It's Big, it's Blue... it's simply FABLESS! IBM's chip-free future
Or why the reversal of globalisation ain't gonna 'appen
IBM storage revenues sink: 'We are disappointed,' says CEO
Time to put the storage biz up for sale?
'Hmm, why CAN'T I run a water pipe through that rack of media servers?'
Leaving Las Vegas for Armenia kludging and Dubai dune bashing
Microsoft and Dell’s cloud in a box: Instant Azure for the data centre
A less painful way to run Microsoft’s private cloud
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
Windows 10: Forget Cloudobile, put Security and Privacy First
But - dammit - It would be insane to say 'don't collect, because NSA'
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.