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Regulations Push AU, NZ CIOs to Outsource

by: Sarah Joson

Friday, June 27, 2014 | Outsourcing News |

NZ and AU CIOs Prefer to Outsource App Development and Testing

With the continuous changes in legislation and industry standards when it comes to an organization’s mainframe applications, it was found that almost  one-third of CIOs in Australia and New Zealand prefer to outsource processes such as application development and testing.
A study commissioned by Micro Focus shows that in all development and testing markets, the US takes the lion’s share with 62 percent, followed by the UK with 40 percent. More than 500 respondents were from around the world, while 50 were from Australia and New Zealand.

Regarding the compliance issues faced by firms in Australia and New Zealand, 50 percent said it is very likely that the original knowledge of their mainframe and supporting data structure are no longer in the organization.

Furthermore, almost three quarters (74%) declared that documentation on their processes is incomplete.

The study also shows that 49 percent of ANZ CIOs who are aiming to comply with new regulations contractually pass legal responsibility for data security and privacy requirements to the outsourcing providers, while18 percent said they are planning to do the same.

Derek Britton, Director of Product Marketing at Micro Focus, said organizations are having a hard time addressing compliance issues because of unclear records. In fact, 23 percent of CIOs have indicated that they are not able to change application compliance internally because their records are not organized.


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