Tuesday, 13 June 2006
Corporate IT Compliance Sees Low Uptake: Singapore CIO Survey
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Serena Software haspublished the results of its second Asia-Pacific (APAC) CIO surveys carried out in late 2005 and early 2006. The Singapore survey contacted 100 CIOs from medium and large sized companies based in Singapore. CIO surveys, led by MarketShare, were also carried out concurrently in Australia, Japan and Korea with 100 CIOs surveyed in each market... |
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Serena Software haspublished the results of its second Asia-Pacific (APAC) CIO surveys carried out in late 2005 and early 2006. The Singapore survey contacted 100 CIOs from medium and large sized companies based in Singapore. CIO surveys, led by MarketShare, were also carried out concurrently in Australia, Japan and Korea with 100 CIOs surveyed in each market. The surveys measured the level of understanding of IT compliance and regulatory requirements, existing levels of compliance-related implementations, and also examined current and predicted levels of spending directed at compliance-related activities.
In Singapore, the survey revealed that while nearly three-quarters (73%) of companies agreed that there were business benefits in implementing compliance initiatives, only 38% of those companies already had plans in place. However, two thirds of Singapore companies believed that they would gain a competitive advantage by complying with regulatory compliance standards and nearly half (46%) of these companies are planning to implement compliance programs by the end of 2006.
Other findings from the survey in Singapore include:
- Respondents currently spend a low proportion of their IT budget on compliance-related activities. More than half the respondents (56%) report that they currently spend “less than 5%” of their total IT budget on compliance-related activities with only 18% of companies currently spending “more than 15%”.
- IT budgets will increase spending on compliance-related activities over the next 2 years. 30% of companies plan to spend “over 15%” of their total IT budgets on compliance-related activities over the next 2 years.
- 92% of Singapore CIOs think that IT has a major role to play in ensuring regulatory compliance.
- CIOs recognize the importance of IT for regulatory compliance, however, nearly one-third (31%) think they do not get enough support from senior management.
- Companies within the telecommunications and healthcare industries currently have the highest rates of regulatory compliance in Singapore. Manufacturing and the Public Sector industries have the best outlook with regard to future take-up of compliance activities.
- The two main reasons why companies feel compliance is important are: (a) to meet local regulations (current and upcoming) and (b) that they are listed in a foreign country and have to comply with international regulations.
The overall APAC surveys indicated that over the next twelve months the majority of APAC companies surveyed also plan to significantly increase the implementation of regulatory compliance programs, with Korea (58%) leading the way.
“Singapore, like the rest of Asia, is realizing the importance of international compliance requirements as it gives them an opportunity to gain a competitive advantage in their market,” said Mr. Mark Woodward, President and Chief Executive of Serena Software. “As the survey shows, the main reason for starting up compliance initiatives in APAC is to do business or trade with overseas companies. But for Singapore, it is more important to meet local regulations. This gives the indication that Singapore’s local regulatory environment is more significant/apparent to CIOs in Singapore in comparison to other countries and this is also a major factor for them.”
Key APAC survey findings:
- A greater proportion of CIOs in Singapore and Japan (70% and 69%) think that they will be held accountable for compliance in the future, compared to a smaller proportion in Australia and Korea (55 and 56%).
- Across APAC, Singapore is seen as the leader in terms of budget percentage spent on IT compliance (18% of companies spend more than 15% of their budget on compliance). Currently Korea lags the other countries, (10% of companies spend more than 15% of IT budget on compliance) however, it has the strongest growth prediction over the next 2 years with 43% of companies planning to spend over 15% of their total budget on compliance-related activities.
- The survey shows that APAC respondents continue to spend a low proportion of their IT budget on compliance-related activities. The majority of companies (60%) say that they currently spend 'less than 5%' of their total IT budget on compliance-related activities with only 9% of companies saying that they currently spend “more than 15%".
- APAC companies surveyed will start to use more of their IT budgets on compliance-related activities over the next 2 years. Over 30% of companies plan to spend 'over 15%' of their total IT budgets on compliance-related activities in the next 2 years.
"As you can see from the our APAC and individual country research, Singapore is ahead of other APAC countries in regards to current take-up of regulatory compliance programs, but the take-up is still low," said Mr. KC Yee, Vice President for APAC at Serena Software. "In regards to future take-up of compliance programs this year, Singapore is slightly behind the APAC average and lagging behind countries like Korea. Singapore companies have to make sure they don’t get complacent as compliance will become even more important in the coming years." |
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