Y2k computer bug economic impact

YEAR 2000 COMPUTER BUG ECONOMIC IMPACT TO EXCEED $2 TRILLION. The millennium bug is going to much more expensive than people realize or at least more than has been previously estimated. Technology Management Reports, a San Diego based research firm, projects that the overall world-wide economic impact of dealing with computer related year 2000 problems will exceed $2 trillion (U.S. dollars).

This projection includes the cost of rewriting existing programs, the acquisition and installation of replacement systems, and productivity lost due to system downtime and business interruption caused by failing systems not in year 2000 compliance.

COSTS TO FIX SYSTEMS IS RISING
The costs associated with exterminating the bug will increase as the year 2000 comes closer. Technology Management Reports estimates that during the second half of 1997 that it is costing about $1.30 per line of code to bring programs into compliance. The cost per line of code is projected to increase as follows:

First half of 1998: $1.75 per line of code Second half 1998: $2.35 per line of code First half of 1999: $2.95 per line of code Second half 1999: $3.65 per line of code First half 2000: $4.00 per line of code

Consultants are busy with clients and this is resulting in year 2000 consulting fees climbing to about $1,500 per day. By the second half of 1998 top notch consultants will be drawing over $2,000 per day and during 1999 consulting fees will reach about $2,500 per day.

LITIGATION EXPECTED
In addition to rising costs, year 2000 computer related litigation will be wide-spread. Litigation is expected between year 2000 consulting firms and their clients. Litigation is also expected between stock holders and management of firms that experience negative economic impact of system failure because management failed to bring their information and manufacturing systems into year 2000 compliance.

For more information on the year 2000 computer problem see the following white papers available at the Technology Management Reports web page: http://www.infohaus.com/access/by-seller/Technology_Management_Reports

Y2K Get organized to beat the bug, and
Y2K Legal Ramifications

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Michael Erbschloe, Research Director, TECHNOLOGY MANAGEMENT REPORTS
U.S. telephone:  619-525-3434
http://www.infohaus.com/access/by-seller/Technology_Management_Reports
http://www.fenet.co.uk/tmruk