# Fortune and FTSE firms to spend millions gearing up for GDPR compliance, new survey shows
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2017-10-27
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: New Research: FTSE and Fortune Firms to Spend $1m on GDPR
Meta Description: New research by international law firm Paul Hastings reveals that FTSE and Fortune firms are setting aside significant budgets for technology to comply with
URL: https://financedigest.com/fortune-and-ftse-firms-to-spend-millions-gearing-up-for-gdpr-compliance-new-survey-showshtml

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- _Fortune firms allocate $1m alone on technology for GDPR_
- _Four in five (82%) FTSE firms have set aside budget for third party legal support_
- _International law firm Paul Hastings surveyed GCs and CSOs in the UK and US to reveal true cost of GDPR compliance ahead of May 2018 deadline_

FTSE and Fortune firms will spend on average £430,000 and $1m respectively on technology alone to ensure compliance with the upcoming General Data Protection Regulation (GDPR), new research by international law firm [Paul Hastings](https://www.paulhastings.com/) has shown today.

The survey of 100 FTSE 350 General Counsel (GCs) and [Chief Security Officers](https://www.financedigest.com/future-market-insights-appoints-aditi-basu-as-chief-marketing-officer.html "Future Market Insights Appoints Aditi Basu as Chief Marketing Officer") (CSOs) and 100 Fortune 500 GCs and CSOs reveals that the biggest allocation of budget set aside so far to comply with GDPR is for technology. The mean [technology budget set aside for FTSE firms](https://www.financedigest.com/technology-trends-heat-up-for-financial-firms.html "Technology trends heat up for financial firms") is £430,000 and for their Fortune counterparts it is $1m.

Despite these large sums of money being allocated, only [10% of firms in the UK and 9% in the US have currently](https://www.financedigest.com/polycaprolactone-market-is-projected-to-expand-at-an-impressive-cagr-of-10-over-the-next-decade-to-be-valued-2-5x-its-current-side-by-2030.html "Polycaprolactone Market Is Projected To Expand At An Impressive CAGR Of 10% Over The Next Decade, To Be Valued 2.5X Its Current Side By 2030") purchased new technology, meaning many firms have yet to start this potentially lengthy process.

**Behnam Dayanim, partner and global co-chair of the Privacy and Cybersecurity practice at international law firm Paul Hastings, said:**“Our research shows that, while large businesses are taking GDPR compliance seriously, there remain worrying signs that they may be [falling short](https://www.financedigest.com/countries-emissions-pledges-still-fall-short-of-global-climate-goals-un-says.html "Countries’ emissions pledges still fall short of global climate goals, UN says") in planning for implementation next May.£ _430,000 or $1m may seem a large sum, but, for many larger and more complex companies, it reflects a small portion of the technology and other costs that ultimately may be required._

_“The GDPR is high-stakes. The consequences of violation can be immense, both in terms of fines and in potentially crippling disruption of a business’s ability to exploit what in many instances is its most valuable asset.  And the clock is ticking.  GDPR compliance can entail [substantial revision to existing procedures and systems](https://www.financedigest.com/global-skin-cooling-systems-market-2021-2028-to-register-substantial-global-expansion-by-2028.html "Global Skin Cooling Systems Market (2021-2028) To Register Substantial Global Expansion By 2028").  Companies that haven’t yet begun already may find themselves in difficult straits come May; certainly, those that have been dragging their feet would be well-advised to strap on the running shoes and try to catch up.”_

The EU’s General Data Protection Regulation (GDPR) is coming into force in May 2018 and will affect any business which controls or processes the data of EU citizens, regardless of where the business is located. As part of the wide-reaching regulation, businesses can be fined up to 4% of [global turnover should they fail](https://www.financedigest.com/facebook-knew-about-failed-to-police-abusive-content-globally-documents.html "Facebook knew about, failed to police, abusive content globally – documents") to comply with GDPR.

Surprisingly, 17% and 22% in the UK and US, respectively, said there was no budget for third party legal support, something which will be [important for businesses](https://www.financedigest.com/importance-of-transparency-and-connections-in-business.html "Importance of Transparency and Connections in Business") before and after GDPR is introduced.

[Firms are also setting aside budget for additional permanent staff to meet regulatory demands](https://www.financedigest.com/oil-prices-stay-firm-on-fuel-demand-despite-covid-19-surge.html "Oil prices stay firm on fuel demand despite COVID-19 surge"). Of the FTSE firms surveyed, 40% have set aside a budget of between £201,000-£400,000 for additional permanent staff, and in the US 34% have allocated between $501,000 and $1m.


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