The high cost of compliance

By , ITworld.com |  Storage



The complexity of compliance as well as business itself is the focus of Forrester's report. The complex and dynamic nature of business, as well as global competition and competitive pressures, are all challenges to compliance, says Forrester. Forrester also notes that initial compliance initiatives were handled in fragmented silos throughout the organization, but now we are starting to see compliance oversight becoming more centralized, often under the purview of a single compliance officer, and taking shape as an enterprise risk management discipline.



AMR Research also looks into the cost of compliance, predicting that it will hit $80 billion over the next five years. Their research estimates that corporations will have spent about $15.5 billion on compliance in 2005, with the average corporation spending about half a million. AMR says SOX is by far the most expensive initiative, and accounts for 39 percent of compliance spending. The largest budget item related to compliance is investment on internal staff.


IDC takes a five-year look at compliance issues as a worldwide market opportunity for software, hardware and services, also noting that corporations are more driven to invest in technology to create a more sustainable compliance environment.

 

 

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