The coming compliance-oriented IT frenzy

Some people might think that just because they've turned the corner on Sarbanes-Oxley compliance, it will be clear sailing from here, but I beg to differ. If anything, the IT crunch stemming from rules and regulations is about to get even worse. The burden will fall hardest on financial services firms, but many other firms will be affected. In addition to the long list of current regs--such as Sarbox, Patriot Act, Basel II and anti-money laundering--the financial industry is staring at a whole new set of legislation that Congress will likely discuss in earnest in 2009. Some are predicting Sarbox II.  

Just because you're not in financial services doesn't mean you're immune. Your transactions with banks and securities firms may be in for additional disclosure, for one thing. On top of all this, there are some big accounting shifts that cannot be ignored. The SEC is still pushing hard for XBRL and IFRS, neither of which will be trivial to implement.  

Within companies, the demands on IT managers will be intense. Combing new business requirements with a tough budget environment could be a prescription for disaster. In the worst case scenario, you'll be pushed and pulled with equal vehemence from the audit committee, the CFO and even others. For this reason, some think that IT departments will fare better than a lot of people think, as budgets--and if you haven't noticed, budget season is in full swing--get hammered out.  

The best way to view all this is as an opportunity. In times such as these, the cream really rises. If you set yourself up as the point guy, the guy who understands how it all works, you'll end up being very valuable. - Jim