Business continuity budgets holding up

During December 2007 and January 2008 Continuity Central conducted an online survey into business continuity budgets. 180 usable responses were received from around the world. 40.5 percent of respondents were from the United States, with 21.7 percent coming from the UK, 10.5 percent from Canada and 5 percent from Australia.

Overall it seems that business continuity budgets are holding up well despite the present gloomy economic climate in western countries. However, budgets seem to be more under pressure in the UK than in other countries.

Business continuity budgets in 2007 compared to 2006
A slim majority of budgets grew in 2007 in comparison to 2006, with 47.5 percent of respondents reporting that budgets were somewhat higher (30.5 percent) or much higher (17 percent). 44 percent of people said that their budgets were about the same and only 8.5 percent reported that they had reduced (7 percent of budgets were less in 2007 compared to 2006 and 1.5 percent were much less).

2008 spending
53 percent of respondents expected that their 2008 spending on business continuity would be higher (35.5 percent) or much higher (17.5 percent). However, significant regional differences could be seen, with 61 percent of US and 53 percent of Canadian organizations anticipating that they would spend more in 2008. On the other hand, only 35.5 percent of UK organizations expected to increase their business continuity spending in 2008.

Just 5 percent of US organizations expected to spend less on business continuity in 2008, compared with 15.5 percent of Canadian and 21.5 percent of UK organizations.

Overall 12 percent of respondents said that spending would be reduced in 2008, and 35 percent expected spending to remain the same as it was in 2007.

Budgetary planning
Only 55 percent of respondents’ organizations operate to a pre-defined business continuity budget.

Spending in the last financial year
Business continuity budgets are still relatively low compared to some other areas of organizational spending, with only 12 percent of respondents reporting that budgets were over £1 million / $2 million.

17 percent of respondents spent less than £25,000 / $50,000 in the past financial year.35 percent spent between £25,000 and £100,000 / $50,000 and $200,000; 13.5 percent spent between £100,001 and £250,000 / $200,001 and $500,000; and 22.5 percent spent between £250,001 and £1 million / $500,001 and $2 million.

Average budgets were higher in the UK than in the US, with the average UK organization that responded to the survey spending £605,925 on business continuity (approx $1.2 million) in the last financial year and the average US organization spending $640,000 (approximately £320,000).

A much more detailed write up of the results which appear in the next issue of the Business Continuity Journal. All respondents who left an email address will also receive a copy of the Journal write-up.

•Date: 11th April 2008• Region: Various •Type: Article •Topic: BC statistics
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