How will GDPR effect data management and outsourcing?

Due to be effective from May 2018, as an alternative to the existing Directive 95/46/EC, GDPR (General Data Protection Regulation) is expected to alter the association between controllers and the service providers that assume the role of processors. At the same time, it will go on to reformat the data protection scenario in the EU, thus ensuring more security for those who outsource their data management services.

As per the existing Data Protection Directive, the businesses who act as the controllers had the right to assign service providers who would process personal data for them, via a written contract which specified that the service provider had to function as per the controller’s guidelines, all the while focusing on protection of the personal data that it is handling, abiding by the standard technical and organizational regulations.

However, with the GDPR, you can see modifications to the responsibilities of the service provider, as per the contract. The contract, it is seen goes on to enforce technical and organizational regulations on the service provider, while also boosting the communication or cooperation between the service providers with the controller. At the same time, you will also see that there is possibility of non-compliance when it comes to the agreement.

Implications of GDPR on Data Security and Outsourcing

GDPR impact on Data Security: As per the GDPR, it states that all the personal data have to be secure and protected properly. In case, the personal data of the EU data subject is delivered from anywhere outside of EU, then it will have to be done anonymously, so that one is not able to identify the sender easily. Or if the data is remotely accessed from outside EU, it is better that it is encrypted or done anonymously.

GDPR impact on Data Retention: Here, we will try to see how GDPR can actually influence data, if it is to be retained in the data warehouse or data lakes for a specified time so that it can be used for data processing or so on. In such scenarios, mechanisms are made use of in order to archive or delete data, once the source withdraws the consent granted to the service provider to store personal data, thus impacting the data governance and management processes that is existing at present at organizations, as the change will be in effect following the launch of GDPR regulations.

GDPR impact on Outsourcing: Even if there has been no major effect to outsourcing, at least from the view point of regulations, you will see that certain measures are in place, which will have to be followed. If you are an offshore data processor or service provider than you have to comply with the regulations that are set up the data controller based on the GDPR, calling for the need to anonymize EU citizen data while accessing it, especially in scenario that data is archiveed at offshore centres, outside EU.

From this, see how GDPR actually brings about a change to the way that the data is protected or retained, so that it will also impact the process of outsourcing data management services, showing a slight modification from how the whole process was based on the existing Data Protection Directive, aiming for a better experience for the controller.

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