Business continuity and disaster recovery in outsourcing
Business continuity and disaster recovery in outsourcing

The following TMT guidance note provides comprehensive and up to date legal information covering:

  • Business continuity and disaster recovery in outsourcing
  • What is business continuity and disaster recovery?
  • Drafting the BCDR provisions
  • BCDR governance
  • Financial services
  • Civil Contingencies Act 2004

It is important for a business to have appropriate measures in place to ensure that it can continue to operate in the event of a disruption or disaster. In the vast majority of outsourcing arrangements, the customer is transferring the responsibility for the operation of significant parts of its business to a third party supplier for them to run on its behalf. Such transfer will include responsibility for ensuring continuity and recovery of the business. This is the purpose of the business continuity and disaster recovery (BCDR) provisions of an outsourcing agreement.

This Practice Note considers the following legal and commercial aspects of BCDR in outsourcing:

  1. What is business continuity and disaster recovery?

  2. Drafting the BCDR provisions

  3. BCDR governance

  4. Financial services

  5. Civil Contingencies Act 2004 (CCA 2004)

For example BCDR provisions, see clause 21 and Schedule 20 of Precedent: Outsourcing agreement—long form.

What is business continuity and disaster recovery?

BCDR covers the planning, processes and actions which must be implemented in order to ensure that an organisation can continue to do business in the event of any interruption, failure or disruption of any element of the services. The aim is to ensure that operations will continue both during and after the event or, if fully interrupted, will be recovered to an operational state within as short a time as possible. Examples of