We don't have until 2000 to get prepared, says Jim Woodward of Cap Gemini, an information technology consulting firm. The year 2000 Problem could as well be called the 1999 Problem. Computers in the year 1999 will be used for planning budgets, making projections, and other date-related tasks.
Credit card issuers already face the problem: a 00 expiration date. They have delayed issuing cards dated later than 1999.
The programs must be ready for testing in late 1998. This leaves far less time than planners have allocated.
Cap Gemini recently surveyed 150 companies -- mostly Fortune 500 firms. Only 13% had implemented a full-fledged plan for y2k repairs.
Testing and implementing corrected programs will consume 80% of the cost of updating the programs, he said.
Jim Mulherin of the Ernst & Young accounting firm added: "Obviously it's going to be a big hit to the income statements of companies around the world."
The story was carried by Reuters (June 20, 1997).
My thought: when y2k repair costs hits income, they will hit the dreams of stock market investors who have not considered the effects of y2k on dividends and earnings. When they finally see this, what happens to the stock market?