The year 2000 is still a year away, but
computer service companies addressing the Y2K problems of their clients
are already finding that work is tapering off.
Newport Beach, Calif.-based Data Processing Resources Corp., which
last week reported record earnings that beat Wall Street forecasts, said
revenue from Y2K remediation services fell as a proportion of overall
sales.
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“Some of our clients are completely done. They’ve finished the
testing and are in good shape,” said Mary Ellen Weaver, chairwoman and
chief executive. “Companies as a whole, especially Fortune 1000
companies, have done a relatively good job of getting their Y2K
conversions completed.”
Last quarter, Y2K work made up 10 percent of revenue after peaking at
12 percent, Weaver said.
That doesn’t mean that the economy has dealt with the problem
successfully, however. Even if a company has inoculated itself from the
Y2K bug, it can still be damaged if the companies with which they work
have not eliminated Y2K glitches.
“Small and middle market companies haven’t tackled the problem or
aren’t as far along,” Weaver said.
Those that have dealt with it, however, are now moving on to other
information technology projects that they had put off, meaning computer
services firms such as Data Processing Resources will continue to have
plenty of work. — JONATHAN GAW, Los Angeles Times.
