ITAA's Year 2000 Outlook February 13, 1998 Volume 3, No. 6 Published by the Information Technology Association of America, Arlington, VA Bob Cohen, Editor bcohen@itaa.org ITAA's Year 2000 Outlook is sponsored in part by BDM International, Inc., CACI International Inc., DMR Consulting Group Inc., IBS Conversions, Inc., Softworks, Inc. and Y2Kplus, Inc. Y2K Offers New Opportunities to Displaced Virginia Workers If the Year 2000 has an upside, it may be unfolding in the southside Virginia town of South Boston. There, a husband and wife team is building a new technology business which addresses Y2K remediation, regional unemployment, and the IT industryís workfo rce shortage. Think of The Software Factory as an offshore software programming firm doing business onshore. While it may seem nonsensical at first blush, this new business start up is dedicated to the proposition of staying putónot deploying its people to work at cus tomer sites. That means that the world must find its way to the company door, a door located approximately 200 miles from Washington, D.C. and 30 minutes from the nearest commuter airport. It also means building a high tech workforce from the ground u p, starting a COBOL boot camp and turning unemployed and underemployed people into newly minted software professionals. This marketplace approach may be unconventional, but The Software Factoryís owners, Jerry Hill and Beverly Lucas, appear more than willing to go against flow. In fact, they ended a 12-year-old consultancy in the Washington suburbs to establish their new firm in the foothills of the Blue Ridge Mountains. Hill and Lucas say they saw an opportunity to marry the regionís economic need with the industryís duel with Y2K dates. The idea has certainly struck a chord in South Boston, where 11 percent unemployme nt makes finding a job a job in itself. Maybe that means it takes a whole village to raise a business. The Software Factory rumbled to life in October 1997, using space donated by a local hospital, tables from a local church and chairs from an office supplies store. The Hill and Lucas venture certainly caught the townís attention. The companyís first open house produced almost 450 job applicants. The entrepreneursí idea is to train 25 people a month, ramping up to a work force of 300 by this summer. Events have proven that plan to be a bit ambitious. Hill says that Year 2000 contracts have been slow to materialize. Although the company has relationships with large systems integrators he hopes to see translate into Y2K subcontracts for remediation a nd testing services, the potential opportunities loom larger than the business realities. "Itís slow," Hill says of his Y2K activity, adding, "In January, we heard the dam is starting to break. By the end of January, they said the dam has big cracks." If the demand dam does break, Y2K work flowing all the way to South Boston, VA from Raleigh, Roanoke, Richmond or Washington, D.C. could be something of a muddy issue. Hill is concerned that his potential business partners will use their in-house capacit y first before jobbing out work to a subcontractor. Particularly an off-site subcontractor. Hill calls his companyís almost off-shore status a "very valid criticism." He acknowledges that government agencies often do not want to see their code go out o f sight. He hopes that such customers will not be blind to what his firm has to offer. Like price. Hill claims his rates are as competitive as many of his counterparts in countries like India, China and Pakistan. And capacity. "There are so many [tec hnical] jobs in metro areas that are not filled," he asks, why not use the technology itself to bring these positions to rural areas? If the Y2K floodwaters are slow to appear, Hill and Lucas seem undeterred. The company has provided jobs to 20 people, acquired for the most part through a local staffing agency, and have another 25 trained in COBOL and waiting in the wings. The firmís screening process involves ten hours of pre-employment training in team building, problem-solving and general organizational issues. A general logic test comes next, followed by a more specific exam in programming aptitude. One hundred and twenty five p eople are now waiting to take the second test. Applicants must then go through the companyís COBOL camp, four weeks of intensive training. The coursework emphasizes both manual and automated approaches to finding and fixing date dependencies in code. A "learning company" approach to life brings another four hours of weekly on-the-job-training, adding technical skills in other important areas, including requirements analysis and documentation. The company has also learned that federal and state programs can provide important assistance. The Job Training Partnership Act, for instance, facilitates the delivery of training and retraining programs to unemployed and underemployed populations. Work ing with the South Central Private Industry Council, the Software Factory is reimbursed one-half the salary paid to workers during the first 90 days. Similarly, the Virginia Department of Business Assistance covers certain costs related to employee train ing. Beyond government programs and programming in general, perhaps the most important thing The Software Factory has in its corner is the motivation of its employees to make the company go. Hill says that when not programming, his new workers aren't afraid t o pick up the phone and market the companyís services. David Martin, a former deputy sheriff, was so motivated when he heard about the firm building its business in South Boston that he showed up on the doorstep of Jerry Hillís house. That same kind of motivation has moved Tanya Chandler from public assistance to an assignment as project leader on a motor vehicle decal receipt system development effort. Hill and Lucas estimate that one in three applicants complete the training. Successful candidates will have good analytical and math skills and the right attitude. High school algebra I and II as well as geometry are important, but they donít replace th e desire to get ahead. Lucas says one of the companyís people, a former landfill operator, was writing his own programs before he came to The Software Factory. "He spent 8 hours at the landfill and another seven hours at night on his computer," she said . Lucas said it would not be unusual to find others studying calculus in their off-hours. Maybe thatís why, as Lucas says, when it comes to a little extra training in Java, HTML or Visual Basic, the trained and retrained hands at the Software Factory "catch on really quick." GAO Report Finds Fault with Banking Agency A General Accounting Office Report issued this week takes to task the Federal Deposit Insurance Corporation (FDIC) for shortcomings in its approach to Y2K bank system compliance. The new report suggests that while the FDIC has taken the problem seriousl y and devoted major effort and resources to mitigating banking risks, the agency isnít quite on top of the issue. "ÖFDICóas were the other regulatorsówas late in addressing the problem," the GAO notes, adding that as a result it is behind on schedules recommended by both GAO and the Office of Management and Budget. The problem is compounded by the failure of the Fed eral Financial Institutions Examination Council (FFIEC) to release guidance on contingency planning, the risks associated with lending to corporate borrowers, and the risks associated with third-party automated system service providers. Not so easy to do, suggests one participant in the process. A Federal Reserve official working with other banking agencies to develop FFIEC policy puts the GAO criticism into context: "A tug of war is going on between the banking industry and their serv ice providers. Banking regulators have asked the banks to ascertain from the service providers a wealth of information on their ability to serve the banking community. The service providers are swamped by these information requests, making it distastefu l and difficult to respond to each. This tug of war contributes to the difficulty of writing a vendor paper which is agreeable to all parties concerned. Our desire is to formulate a cogent program, manageable from both ends of the rope." The GAO report credits the FDIC with taking a series of steps to raise Y2K issue awareness, including letters to banks in July 1996 and May 1997. The agency also completed an initial assessment of all banks under its purview by December 31, 1997, accordi ng to the report, finding 200 banks not adequately addressing the issue and 500 banks reliant on service providers but not following up to assure Y2K readiness. The report notes that the FDIC will conduct on-site visits with all banks by June 1998 as wel l as assessments with 275 major data processing service companies and 12 major software companies. The report criticizes the FDIC for a failure to gather sufficient data in its assessments. Questions missing in the assessment guidance include asking whether specific Y2K phases have been completed. GAO says that terms used to describe progress are als o vague. "Öthe tracking questionnaire examiners are required to complete after their on-site assessmentsÖdoes not ask enough questions within each of the five phases to determine whether the bank has fully addressed the phases." Business to Business Viasoft, Inc., Phoenix, AZ, has been awarded Y2K conversion contracts by the Mutual Life Insurance Company of New York and the Caldor Corporation. NeoMedia Technologies, Inc., Fort Myers, FL, has selected James M. Marshall as the new Executive Vice President, Sales and Marketing. ConSyGen Inc., Phoenix, AZ, has won a Y2K conversion contract with Chase Software Norway AS. Fidelity Technology Solutions, Boston, MA, has announced the availability of TRACER 2000, a new Y2K software tool. ZMAX Corp. subsidiary, Century Services Inc., Germantown, MD, has been awarded a Y2K conversion contract by the State Compensation Insurance Fund of California. Platinum Technology, Inc., Oakbrook Terrace, has won a Y2K conversion contract with Employers Reinsurance Corporation. Syntel, Inc., Troy, MI, has been awarded a multi-million dollar Y2K conversion contract by Blue Cross/Blue Shield of Georgia. Sponsor Advertising BDM International, Inc. Are you confident that your renovated software applications are millennium-ready? Have you also validated the associated hardware, firmware, interfaces, third party software, and non-information systems that keep your business running? If not, BDM can help you mitigate business risks across your enterprise with our BDM SMART ValidatorSM solution. SMART Validator helps you to objectively validate that each and every automated system affected by Year 2000 performs as intended. SMART Validator provides customers with detailed processes, checklists, compliance statements, and guidelines to validate a nd maintain compliance beyond Year 2000. With 37 years of large-scale project management and testing experience backing our solutions, you can count on BDM and SMART Validator to help you prove Year 2000 compliance across your organization. (800) 794-6085 e-mail: year2000@bdm.com http://www.bdm.com. CACI International Inc. -- Restore 2000 CACI leverages 35 years of information technology experience and over 10 years of reengineering systems - solving the same problems Y2K poses - to offer a total solution to the Year 2000 challenge: Restore 2000SM. The Restore 2000 methodology applies a comprehensive three-phase process to your information systems: Assess, Plan, and Remediate. Furthermore, we give you the option of buying our methodology or our services - both backed by CACI experience and Y2K expe rts. Restore 2000 is certified by the ITAA as meeting the highest standards of Y2K compliance. In addition, software development processes at CACI have been independently certified as being at Level 3 of the Software Engineering Institute (SEI) Capability Mat urity Model. Achieving SEI Level 3 provides clients further assurance that CACI solutions successfully and effectively deliver Year 2000 compliance while allowing you to save money, reduce risk, and minimize systems disruption. With approximately 3700 employees worldwide and FY97 revenues in excess of $270 million, CACI provides a depth of experience and expertise you can rely on. We've performed Year 2000 conversions for many of America's biggest enterprises, including major he alth insurance providers, retail clothing manufactures, gas companies, airlines, and government agencies. Superior functionality backed by decades of experience - CACI's Restore 2000. DMR Consulting Group Inc. DMR Consulting Group Inc.(formerly DMR TRECOM), an Amdahl company, is a global consulting organization of over 7,000 employees providing a comprehensive range of information technology services. Our Year 2000 Practice comprises a comprehensive offering of consulting, assessment, remediation, testing, and implementation services utilizing a formal methodology (APM/2000), best-in-class software tools, and six global conversion centers. We have mul ti-disciplinary experience in most mainframe, mid-range, and client-server/desktop environments. APM/2000 includes: … Program Management … Enterprise-Wide Assessment … Impact Analysis … Conversion Delivery … Testing and Implementation Year 2000 Risk Management Consulting Services include: Program Review, Stakeholder Readiness Assessment, Risk Management and Vendor Compliance Research. Contact: Stephen Frycki Managing Director, Year 2000 Services - US Phone: 201-200-3923 Fax: 201-200-9046 Email: fryckis@dmr.com Websites: http://www.dmr.com IBS Conversions, Inc. IBS Conversions, Inc., founded in 1982, is the first service organization to receive ITAA*2000 Certification for IBS/Solution 2000TM methodology, products and services. IBS is a recognized leader in automated conversion/migration software and consulting having translated millions of lines of code for companies worldwide. IBS/Solution 2000 IBS/Solution 2000TM is a full suite of Year 2000 services and products: Full project Analysis, Pilot Project and Repair, staffing and management/methodology Scan/Repair Conversion Factories for Mainframe and AS/400 environments Project Methodology Qwik-Sizer Analysis Licensing Scan/Repair Tools for AS/400 Y2K Projects License Conversion Factories/Tools to other Consulting Firms http://www.ibs2000.com SOFTWORKS, Inc. HOT DATE 2000/SIMULATE Preparing for the new millennium isn't easy, especially in the data center. Ensuring an accurate conversion could be a daunting task. That's why SOFTWORKS has created HotDate 2000/SIMULATE. HotDate 2000/SIMULATE is a comprehensive identification, testing, and simulation utility created to locate the programming changes needed to prepare for the Year 2000. Using a simulated Year 2000 environment, HotDate 2000/SIMULATE locates and tests pote ntial date problems the Year 2000 will cause to your individual programs, applications, and entire system. HotDate 2000/SIMULATE is transparent to your applications and supports all programming languages. For more information about HotDate 2000/SIMULATE, call SOFTWORKS at 800-727-4422. Http://www.softworkscc.com Y2Kplus, Inc. Y2Kplus provides a portfolio of "best of class" software products and outsourcing services that address Year 2000 issues. These offerings are available both to IT Solution Providers and IT organizations. Y2Kplus has offerings that address the following needs: * A comprehensive Renovation Preparation offering to enable you to prepare complete and accurate packages of software components ready for mainframe code renovation. * A powerful Code Renovation set of offerings that will renovate: * multiple languages including COBOL, Assembler, Pl/1 and Natural code for mainframe systems; * mid range COBOL systems running on DEC, HP, DG, NCR, Unisys, Wang, Prime, Bull, Tandem, and IBM AS/400 platforms. * A Re-engineering tool for mid range COBOL systems that will enable you to rehost to other platforms, thereby providing "value beyond year 2000". * Code Renovation outsourcing services for all of the above systems plus IBM AS/400 RPG. * A Testing Tool that enable you to warp test data dates to allow you to do future date testing by updating your current test data stream and then compare results of test runs before and after 2000. * Services for development and management of Comprehensive test plans and strategies to help your organization create effective baseline tests, improving the quality of risk mitigation derived from forward date testing. For more information, please send email to info@y2kplus.com, visit our web site at www.y2kplus.com or call Dave Ehlke at 781-863-8111. Calendar February 17, í98 Washington DC Y2K Group Meeting Washington, DC http://www.bfwa.com/bwebster/y2k February 18-20, ë98 Software Quality Engineering - Austin, TX Info: 800-423-8378 Y2K Software Testing http://www.sqe.com February 23-24, í98 The International Conference/Expo New York, NY Info: 212-734-4412 On Year 2000 Computing February 23-24, í98 An Action Plan For Year 2000 Orlando, FL Info: 781-235-2895 Compliance - Seminar http://www.masp.com February 23-24, ë98 The Y2K Maritime Issues Conference New York, NY Info: 800-237-7203 http://www.motivatorsconference.com March 4, í98 ITAA Y2K Task Group Meeting Arlington, VA Info: 703-284-5312 http://www.itaa.org/year2000.htm March 9-11, í98 DCI - Managing Y2K Projects: Washington, DC Info: 508-470-3870 The Key Issues External & Internal http://www.dciexpo.com March 10-12, í98 DCI - Testing For Y2K Compliance Washington, DC Info: 508-470-3870 http://www.dciexpo.com March 17, í98 Washington DC Y2K Group Meeting Washington, DC http://www.bfwa.com/bwebster/y2k March 18-20, í98 SPG Year 2000 Conference & Expo New York, NY Info: 508-652-1010 http://www.spgnet.com March 23-24, í98 IBCís Y2K Legal Compliance Conference New York, NY Info: 508-481-6400 http://www.ibcusa.com/conf/2000legal March 23-24, í98 An Action Plan For Year 2000 Boston, MA Info: 781-235-2895 Compliance - Seminar http://www.masp.com April 1, í98 ITAA Y2K Task Group Meeting Arlington, VA Info: 703-284-5312 http://www.itaa.org/year2000.htm April 6-9, í98 Year 2000 National Symposium Atlanta, GA Info: 508-393-3266 BrainStorm Group, Inc. http://www.brainstorm-group.com April 14-15, í98 An Action Plan For Year 2000 New York, NY Info: 781-235-2895 Compliance - Seminar http://www.masp.com April 20-22, í98 SPG Year 2000 Conference & Expo Orlando, FL Info: 508-652-1010 http://www.spgnet.com April 21, í98 Washington DC Y2K Group Meeting Washington, DC http://www.bfwa.com/bwebster/y2k April 27-28, í98 Year 2000 Millennium Bug New York, NY Info: 800-931-6722 Investment Conference April 29-30, í98 Y2K Info Net Technology Conference Toronto, Info: 905-454-8577 Canada May 6, í98 ITAA Y2K Task Group Meeting Arlington, VA Info: 703-284-5312 http://www.itaa.org/year2000.htm May 18-20, í98 IBM Y2K Technical Conference Las Vegas, NE Info: 800-426-8322 http://www.training.ibm.com/ibmedu/conf/yr2000/ May 18-20, í98 IQPCís Year 2000 Industrial & Houston, TX Info: 617-482-3258 Process Control Systems Conference May 18-19, í98 An Action Plan For Year 2000 Boston, MA Info: 781-235-2895 Compliance - Seminar http://www.masp.com June 1-2, í98 An Action Plan For Year 2000 Chicago, IL Info: 781-235-2895 Compliance - Seminar http://www.masp.com June 3, í98 ITAA Y2K Task Group Meeting Arlington, VA Info: 703-284-5312 http://www.itaa.org/year2000.htm June 22-25, í98 Year 2000 National Symposium Chicago, IL Info: 508-393-3266 BrainStorm Group, Inc. http://www.brainstorm-group.com June 22-23, í98 An Action Plan For Year 2000 San Francisco, CA Info: 781-235-2895 Compliance - Seminar http://www.masp.com June 29-July 1, ë98 SPG Year 2000 Conference & Expo Chicago, IL Info: 508-652-1010 http://www.spgnet.com July 1, í98 ITAA Y2K Task Group Meeting Arlington, VA Info: 703-284-5312 http://www.itaa.org/year2000.htm August 5, í98 ITAA Y2K Task Group Meeting Arlington, VA Info: 703-284-5312 http://www.itaa.org/year2000.htm August 10-13, ë98 Year 2000 National Symposium San Francisco, CA Info: 508-393-3266 BrainStorm Group, Inc. http://www.brainstorm-group.com September 2, í98 ITAA Y2K Task Group Meeting Arlington, VA Info: 703-284-5312 http://www.itaa.org/year2000.htm September 23-25, ë98 SPG Year 2000 Conference & Expo San Francisco, CA Info: 508-652-1010 http://www.spgnet.com October 7, í98 ITAA Y2K Task Group Meeting Arlington, VA Info: 703-284-5312 http://www.itaa.org/year2000.htm November 4, í98 ITAA Y2K Task Group Meeting Arlington, VA Info: 703-284-5312 http://www.itaa.org/year2000.htm November 9-11, ë98 SPG Year 2000 Conference & Expo Boston, MA Info: 508-652-1010 http://www.spgnet.com December 2, í98 ITAA Y2K Task Group Meeting Arlington, VA Info: 703-284-5312 http://www.itaa.org/year2000.htm