The IT industry could be the next target for widespread regulation, and it could catch many vendors and IT organizations off guard and unprepared for these regulatory changes.

Research published in 2006 by the Gartner group suggested that consistent low-level IT failures could spark government regulation of IT products and services in the United States.  Gartner is now predicting more widespread regulation of IT by 2015.

“Although the exact date of arrival for regulation is difficult to predict, we believe that, in recent months, the tempo and intensity of the indications of such an event have increased” says Richard Hunter, vice president and distinguished analyst at Gartner.

Recent hackings into government and other industry IT networks has raised the level of awareness to the IT security threat that the United States could face over the next few years.

Could IT Managers and Software Developers Be Held Liable?

With increased attention on the security of IT networks, IT managers and software developers could soon see a wave of litigation for breaches of security experienced by their customers.

Healthcare industry representatives have already asked the Obama administration to hold software vendors liable for failures resulting from implementation of administrative software mandated by the U.S. federal government by 2014.

Their has also been an uptick in litigation from corporate customers aimed at IT providers as well.

Hunter said software vendors need to be aware that increased liability will drive generic software out of the market, and they should prepare for transparency and product/price differentiation based on quality and certified fitness for purpose.

IT service providers should do the same and mitigate risks by incorporating strong documentation, audit right provisions and legal compliance terminology into outsourcing deals.

Additional information is available in the Gartner report “Childhood Ends: The Signs Are Clearer”