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Summary and Comments

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Category: 

Litigation

Date: 

1998-02-26 00:28:30

Subject: 

FLORIDA BAR JOURNAL Lists Some Y2K Horror Estimates

  Link:

http://www.lawlinks.com/flacom/6_fall97/y2k.html

Comment: 

These items may not seem all that radical to frequent visitors of this site, but to lawyers, they are new stories.

I post this because we need to understand that word is slowly trickling out to decision-makers.

* * * * * * *

". . . . another firm now says this (Gartner Group's estimate of $400 - $600 Billion worldwide) is too low. Technology Management Reports, a San Diego-based research firm, projects that the overall worldwide economic impact of dealing with computer-related Year 2000 problems will exceed $2 trillion. About 25 percent of this estimate consists of the costs of litigation, says Michael Erbschloe, research director at Technology Management Reports. . . . This projection also 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. . . . "Lloyds of London was told that they should anticipate paying upwards of $800 to $1 trillion in litigation expenses. . . ."Erbschloe reports. Already some insurance companies are adding exclusionary clauses. . . . Another factor driving worldwide costs up is a sharp rise in programmers' rates as the year 2000 draws closer. Technology Management Reports estimates that it is now costing about $1.30 per line of code to bring programs into compliance. (From the 1st half of 1998 it is expected to rise from $1.75 to $4.00 in the 1st half of 2000). Year 2000 consulting fees are climbing to about $1500 per day. By the second half of 1998, top-notch consultants will be drawing over $2000 per day and during 1999, consulting fees will reach about $2500 per day, Technology Management Reports predicts. . . ." (Midrange Systems Magazine, 15 Aug 97)

Link: 

http://www.lawlinks.com/flacom/6_fall97/y2k.html

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