Y2K: progress on compliance, but new work slows down

The Financial Services Authority, charged with monitoring millennium bug problems in its sector, reports that the last business at risk of failure has managed to get itself off the danger list.

The FSA tracks 400 high and medium impact groups but has always refused to link names to performance. Over the past several months, all those classified 'red' - at serious risk - have remedied the situation. Seven of the 400 were recently rated 'amber' - at moderate risk - but were expected to improved their positions very soon.

Elsewhere, business is slow for IT companies - at least in their sales divisions. A recent survey of hardware vendors in the US found that 50% of potential buyers had imposed a freeze on all new purchases.

Their major concern is to protect compliance efforts made so far by not introducing any new systems until the Y2K danger period is perceived to be over.

This survey also revealed that over 90% of companies questioned had not yet assessed the direct costs of compliance, a fact that may indicate a willingness to devote whatever resources are necessary.

The pre-millennium slow-down has been felt in other sectors, as well. Some workplace consultants have reported clients putting reorganisation and refurbishment projects on hold for the time being.

Elliott Chase