CGT Inside News - 11/30/2005
Sarbanes-Oxley Spending to Exceed $6 Billion in 2006
November 30, 2005 - Companies will spend $6 billion on complying with Sarbanes-Oxley Act (SOX) requirements in 2006, on par with the $6.1 billion that will be spent in 2005, estimates AMR Research. Findings are based on a recent AMR study in which more than 300 business and IT leaders were surveyed on their Sarbanes-Oxley and broad compliance spending priorities.
In 2006, there will be key differences in how budgets are spent versus in 2005. For example, budgets allocated to internal headcount are expected to fall 8 percent while technology allocation will grow more than 13 percent in real dollars. This demonstrates that technology is playing an increasingly significant role in the integration of SOX compliance initiatives into business processes. According to AMR, companies reported throughout 2005 that they were refining existing business and IT controls in preparation for automation efforts using technology.
"These spending predications support a long-term approach to SOX compliance," says John Hagerty, vice president of research at AMR Research. "Budgets are shifting from headcount to technology so that compliance can become repeatable, sustainable and cost-effective."
Additional findings regarding compliance with include:
39 percent of companies currently have an operational SOX solution, while 37 percent are implementing one in 2005. Even so, more than 80 percent of companies plan to add to or improve on what they have in place in 2006.
40 percent of companies have a specific budget for SOX compliance; the remainder fund efforts from existing operations.
None of the companies surveyed have spent less than anticipated.
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November 30, 2005 - Companies will spend $6 billion on complying with Sarbanes-Oxley Act (SOX) requirements in 2006, on par with the $6.1 billion that will be spent in 2005, estimates AMR Research. Findings are based on a recent AMR study in which more than 300 business and IT leaders were surveyed on their Sarbanes-Oxley and broad compliance spending priorities.
In 2006, there will be key differences in how budgets are spent versus in 2005. For example, budgets allocated to internal headcount are expected to fall 8 percent while technology allocation will grow more than 13 percent in real dollars. This demonstrates that technology is playing an increasingly significant role in the integration of SOX compliance initiatives into business processes. According to AMR, companies reported throughout 2005 that they were refining existing business and IT controls in preparation for automation efforts using technology.
"These spending predications support a long-term approach to SOX compliance," says John Hagerty, vice president of research at AMR Research. "Budgets are shifting from headcount to technology so that compliance can become repeatable, sustainable and cost-effective."
Additional findings regarding compliance with include:
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