Specialist providers continually getting swallowed up by wider service providers poses a risk to UK businesses.
Research from Databarrack’s annual Data Health Check (DHC) survey revealed that only one third of UK organisations came through the last 12 months unscathed from a cyber-attack.
“Because of this, disaster recovery and business continuity capabilities are becoming increasingly crucial,” Groucutt says. “But despite an increase in DR testing, organisations’ confidence in their ability to recover from an incident is actually decreasing. Having thorough plans and the right tools in place is a solid starting point, and provisioning services from a specialist provider adds an extra layer of reassurance.”
Takeaways for Business Continuity Managers
Concentration Risk (or “having all your eggs in basket”) always needs to be considered in commercial relationships. Although economy of scale may be attractive from a budgetary perspective, spreading risks over two or more specialist suppliers can avoid a disaster. This is an issue that service users need to maintain an awareness of: what may seem sensible to the customer may not fit in with the interests of the service provider. Shareholder value obligations and owner/investor exit strategies will always play a bog part in M & A decisions – and these decisions may not always be in the customers best interests.