PRESS RELEASE/APRIL 2005
Poor performance and regulatory pressures force companies to upgrade financial & accounting systems
PMP Research survey finds that many companies are disappointed with the performance of their existing financial and accounting software, and face major challenges from new regulatory requirements.
Only a quarter (25%) of the companies polled in a recent survey by PMP Research believe their current financial and accounting systems meet all their original objectives, while more than two-thirds (69%) feel their choice of software has only met requirements ‘to some extent’. The respondents have come from www.evaluationcentre.com.
Failure to change internal processes emerges as the key reason why companies do not reap the benefits they seek, according to 56% of respondents.
In order to improve performance, companies now expect to replace or significantly upgrade their financial and accounting systems at regular intervals, with 30% of the sample indicating they have done so within the past year. A quarter (25%) have made changes within the past one to two years and 21% report upgrades over a three to five-year timeframe.
Cost reduction, cited by 57%, and the need to accommodate changes to business processes and procedures (also 57%) remain the key drivers for development activity in this area currently, along with the desire to improve management information systems (54%).
Significantly, however, 48% of companies also identify regulatory changes such as the new International Financial Reporting Standards (IFRS) as a critical factor. A similar proportion (44%) also cite compliance requirements such as Sarbanes-Oxley, Basel II and the demands of the FSA (44%).
These requirements are likely to prove a major challenge for many companies, since although 56% of the sample claim to have ‘one version’ of corporate data which is controlled by the finance department, the remaining 44% concede that much corporate data is distributed around transaction processing systems and in other departments, which will make creating a clear audit trail difficult.
For the future, the proportion of organisations who feel their development projects over the next two years will be dictated by the demand of regulatory or compliance legislation drops to around a quarter (27% in the case of compliance demands and 25% in the case of regulatory changes).
In contrast, almost twice as many (53%) predict that future development projects will be driven by the opportunities offered by the internet and e-commerce.
In particular, companies are enthusiastic about the Government’s current e-filing initiatives in areas such as PAYE end-of-year returns. A quarter (24%) have already begun e-filing, with 14% intending to do so shortly. Only 7% report that they have decided against this approach.
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Note for editors:
About PMP Research
PMP Research, founded in 1990, is the leading European independent analyst firm and part
of PMP Group Services. The firm provides bespoke research, analysis and consultancy on a
UK, European or global basis, typically within the IT, telecoms and professional services
Clients include Accenture, KPMG, AT&T, Cisco, Oracle and SAP.
PMP Research being part of the PMP Group, has access to a database of over
68,000 individuals. This unique facility reduces cost and timescales for any project
For more information please contact Cliff Mills on 0870 908 8767 or email firstname.lastname@example.org.
About the Evaluation Centre
www.evaluationcentre.com is the website and service centre to assist buyers of software, services and technology in their procurement process. It achieves this by dividing the site into four areas a) Strategy - this part of the site help users build their IT and Business strategy b) Supplier Evaluation - this part has over 150 suppliers evaluation reports and lists an additional 1200 suppliers c) Implementation - this part of the site provides guidance in terms of implementation best practice and finally d) the Service Centre - this part of the site provides help desk facility.
For more information please contact Steve Markwell on 0870 908 8767 or email email@example.com.
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