Conclusion 04: Spotty Spending, High Confidence
Despite the fact that continuity spending has not increased at more than two thirds of companies since Sept. 11, IT executives are confident they can respond to an emergency and keep the business running in the event of a catastrophe. Companies that did increase or decrease continuity spending did so by substantial percentages.
Just 31% of companies increased business continuity budgets, a seemingly low number given the widespread effects of the attacks. However, those that increased their disaster recovery spending did so dramatically, with the median budget for all such respondents rising by 20% between 2001 and 2002. Firms that decreased their spending did so by 25%probably due to the impact of the recession on these firms.
More than a third of the companies that were most financially affected by the events of Sept. 11 actually decreased their business continuity spending, dropping it by a median of 30%.
CIOs are generally confident about their company's level of preparation. Just 57% thought their company would have been able to keep doing business after an attack a year ago. But more than seven out of 10 feel they are able to do so now, and nearly nine out of 10 believe they will be a year from now.