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Home > DQTop20 2008 > Services & Solutions Superguide 08

Standing Guard
Events like the 9/11 attack or the 2002 Indo-Pak tensions have made companies more acutely aware of the need to have a strong business continuity plan
Monday, September 08, 2008
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With the frequency of man-made and natural disasters increasing, companies across industries have realized the sense in having some kind of business continuity plan in place. Loss of business on account of outage could result in loss of trust with customers. This applies to those involved in domestic businesses, as well as with IT services companies catering to their international clients.

Way back in 2002, when tensions between India and Pakistan escalated and fears were expressed of an imminent war, advisories were issued by analysts and countries that were doing business in India or with India. The one by analyst firm Gartner at that point in time had some words of advice for enterprises to re-visit their partners business continuity plan. It went on to suggest the companies to Understand the scope, limitations, and risks of the offshore providers BCP or business continuity planning. Conduct an in-depth review of the components of the plan and ensure that the enterprise is comfortable with the key elements: data, platforms, connectivity, and succession planning for workers. The vendor should have done dress rehearsals to show proof of concept for its BCP. And work with the vendor to create customizations to its BCPs to meet specific needs, on a company and project basis. It also talked about how it is impossible to have a 100% back-up outside of India. It even went on to suggest customers to review contracts, a very serious point to consider.

Plans in Place
The level of preparedness of IT services companies can be gauged from the example of Mastek, an offshore outsourcing services and IT applications company. The companys increased fool-proof strategy was influenced to a large extent by the events of 9/11, as well as 2002s heightened tension. The company anticipates two major scenarios in case of an anticipated war or attack. In the event of non-availability of its offshore development facility that is located at Seepz, Mumbai, it is prepared to use Pune as a continuity of business site to support its customers. There is another situation it is prepared for: in case all the facilities in India get affected, it plans to activate its site in Bristol, UK.

Industries like IT/BPO and BFSI are the early adopters of this concept. As the very foundation of their business rests on the continuity of their 24x7 operations throughout the year. Business continuity becoming an integral part of a companys strategy, is good news for vendors and solution providers who are out with their products and solutions ensuring uninterrupted business.

Despite all the preparations that companies have put in place, there are situations which are beyond their handas it happened in January 2008, when submarine cables off the coast of Egypt in the Mediterranean got cut, impacting businesses. While some companies with adequate failover plans could manage the situation, others were not so lucky.

Sudesh Prasad
sudeshp@cybermedia.co.in

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