I used below code as suggested by Porter for compressing and copying directory.

find ${COPY_DIR} -type f | while read N
do
mkdir -p "${BACKUP_DIR}/`dirname $N`"
gzip < $N > ${BACKUP_DIR}/$N.gz
done

However I have some directories which have space in name. I get below error when copying and compressing directories which have sapce in name.

/backup/sidora/iAS/ifs1.1/doc/Quick Tour/Graphics/rtarr.gif.gz: cannot create

Any ideas on how can I take fix above error. Thanks in advance.