The present invention relates to systems and methods for archiving or backing up data. The systems and methods use a staging area to temporarily store data prior to transfer to backup or archive storage. Data is copied from local storage to the staging area and stored there temporarily until it is transferred to backup or archive storage. The staging area preferably uses sparse file technology which stores a mixture of zero data and non-zero data in a storage space substantially equal to the storage space required to only store the non-zero data. Once data is transferred from the staging area to remote storage, the storage space allocated in the staging area may be deallocated in order to minimize the amount of storage space required for the staging area. In addition, the local storage space may also be deallocated, if appropriate. Using sparse file technology as the staging area results in minimal storage requirements and minimal overhead for managing the storage space of the staging area.