Despite the growing threat of war and terrorism, most US companies are totally unprepared for the business and IT outages that would result from severe calamities, industry experts warned this week.
According to a recent Gartner Dataquest survey of 205 US companies, one in three needs to make immediate investments in disaster recovery systems to avoid losing critical data or operational capability in the event of a disaster occurring.
"More prioritised investments must be made to ensure that businesses can quickly regain productivity after a calamity," said Tony Adams, principal analyst for Gartner Dataquest's IT Services group.
"Preparation is key, and without adequate investment for protection of critical systems the repercussions of disasters will be lengthier and more costly."
According to the survey, Investment Decisions: Preparing for Organisational Disasters,lack of funds was cited as a main reason by a quarter of respondents for not yet initiating formal disaster plans.
"IT managers are not investing appropriately in disaster plans because they do not have a budget to accomplish their needed readiness," said Adams.
"Budget constraints are forcing an average of 40 per cent of respondents to rely on a 'best guess' to determine potential risk, rather than obtaining formal assessments, which would be too costly."
The report also found that even some businesses with contingency plans are not safe because of funding pressures.
The analyst said that 37 per cent of IT managers who have an organisational disaster plan in place need additional investment to get it to a satisfactory level.
"The good news is that businesses now more widely understand that they must prepare in advance to solve the complex logistical and personnel problems inherent in a disaster," said Adams.
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