Purchasers: 'no plans to increase security spend'

18 August 2011

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18 August 2011 | Angeline Albert

Security budgets are unlikely to rise in the next two years, despite the recent riots in England and increased threat of cyber attacks.

Some 79 per cent of procurement professionals responding to the latest SM100 poll have said their organisation has no plans to increase security spending. Riots in London and other parts of England earlier this month – where some businesses suffered a loss of trade and damage to property and stock – meant security issues hit the headlines. Earlier this year, a report warned hackers are increasingly threatening the security of supply chains.

A lot of buyers said it was unnecessary to boost spending because businesses should already be continually assessing security arrangements for fitness for purpose.

Gillian Fletcher, supply chain director for critical assets at Babcock International Group said: “Our business works for government bodies and defence organisations as well as blue chip clients. We have always had to have rigid security systems and processes place to work with our client groups and currently there is no formal remit to increase this despite recent events around England.”

Paul Brimmer, head of purchasing at JD Wetherspoon said: “We experienced one pub, Great Harry in Woolwich, being burnt to the ground, along with early closures in many others. Our purchasing policies and approach has not changed as a direct result of the recent riots.”

Among the 21 per cent who said their organisation was increasing security spending in the next two years was Fujitsu. It is reviewing security arrangements including data encryption and computer forensics, secure transportation and logistics, and security arrangements covering operating sites. Patrick Wolff, sourcing manager for corporate services sourcing at Fujitsu said: “This activity was initiated before the rioting, primarily from fitness-for-purpose and best-value perspectives.”

Bill Fyfe, head of procurement at National Trust for Scotland said: “This is not because of the riots, but we are looking to install better security and CCTV systems in some of our remote properties due to vandalism and potential break-ins. In our case a lot of the properties are listed buildings, which causes installation issues for us.”

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