How to Profit from Regulating IT

Accountants and lawyers are running high tech companies and the IT departments of non-high tech industries. The culprit is businesses are now trying to comply with the Sarbanes-Oxley Act (which is a law to legislate corporate morality). Basically the SOX Act defines procedures to insure the sanctity of systems and their corresponding data. SOX was supposed to prevent corporate management’s raiding of the corporate cookie jar via a plethora of shenanigans. Enron, Global Crossing, WorldCom, Quest, PhamMor… all readily come to mind.

While it would be easy for me to describe how SOX misses the mark for prevention of corporate fraud and adds huge overhead similar to the edicts for red tape from a psycho-communist pointy hair boss. Instead, I ask the question of what will the impact of accountants and lawyers running high tech companies and the IT departments of non-high tech industries be? I personally find it disturbing that accountants and lawyers are driving and managing IT. Especially, since most within these groups don’t have a clue about technology and control the assessment, implementation, and procurement of it.

Due to lack of understanding within these groups, IT is generally undervalued and consequently looked at as a cost center rather than a value center. Hence, the outsourcing philosophy of contracting with the lowest bidder for IT services. IT’s new management needs to wise up and realize that success in the marketplace is due to technological improvement and advantage.