Latest News  

Headline changes to be introduced in EU Data Protection Regulation act

Successful outsourcing projects have always relied on a clear and commercially reasonable allocation of risks between the parties for all aspects of the relationship, writes Huw Beverley-Smith for

2015-12-08 16:38:06

These range from actual service delivery, fulfilling the underlying business case, through to greater and more unpredictable risks which emerge in the life of an outsourcing agreement, such as changes in business requirements, the wider economic climate, governmental policy changes and geopolitical shocks.

The trend towards flexibly-priced, on-demand service-based models has afforded both customers and suppliers greater flexibility and a broader range of options in delivering infrastructure, technology platforms, IT applications and analytics services. It has also contributed to the gradual erosion of the dominance of the traditional single supplier model in favour of differentiated offerings from a greater number of suppliers.

In recent years, highly-publicised instances of IT system failures and large-scale data breaches have often been blamed (at least in part) on the outsourcing of the business processes in question. Several industry surveys have attributed fault to outsourced service providers in a high proportion (as many as two-thirds) of data breaches.

The shifting technology landscape has resulted in a more complex interplay between customers and suppliers (or sometimes a complex web of suppliers). In particular, the nature and extent of controls over data (including personal data and confidential information) and allocation of liability for breach of legal and regulatory obligations.

These factors are likely to become more prominent on a number of levels: the increased complexity and preponderance of technological threats; the greater costs of remediation; decreasing tolerance among businesses and consumers; and significantly more onerous legal compliance obligations. Discussions of allocation of risk and liability for loss of data and compliance obligations in technology outsourcing agreements traditionally centered on a limited number of provisions, and suppliers in a single supplier model often ultimately carried most of the risk.

This will change further over the next few years. Headline changes likely to be introduced in the EU Data Protection Regulation include mandatory data breach reporting requirements, significantly higher fines and increased obligations relating to the data processing activities of service providers.
Contractual discussions will go beyond the scope of liability for data loss and compliance with data protection laws and will increasingly pervade other areas such as the technical structure (and location) of the service delivery model, responsibilities for breach response, investigation, reporting (to regulators, investors and insurers), remediation and reputation management and, ultimately, termination rights.

Sourcing professionals are already getting to grips with these issues and will be looking to a number of technical and professional colleagues to make the outsourcing arrangements work.

Huw Beverley-Smith is a partner at Faegre Baker Daniels.

0 COMMENTS ^ Go back to Top
WRITE A COMMENT ^ Go back to Top
Your email address will not be published.
Validation Code
Cushman & Wakefield Echinox: StreamWIDE joins the new IT hub created in the Timpuri Noi Square project

StreamWIDE, a company specialized in the software and telecommunications industry, realocates its office in Bucharest in the Timpuri Noi Square project, joining the new IT hub created in the business park devel

 Read Full article »
CBRE: Office deliveries expected to bring new stock of 635.00 sqm, Bucharest to reach 3.9 mln sqm modern office spaces

During 2020–2021 to approx. 635,000 sqm of modern office space are expected to be delivered on market, increasing the Bucharest modern stock at approx. 3.9 million sq m, a step closer to a new a threshold and

 Read Full article »
Uber opens at Bucharest the largest support center to drivers and business partners in CEE

Uber company launched this week in Bucharest the largest center in Central and Eastern Europe that offers assistance to drivers and business partners in Romania, a center where they can contact directly Uber re

 Read Full article »
Samsung and Orange Romania activated the 5G VR Live streaming at Untold Music Festival in Romania

Samsung Electronics and Orange Romania have successfully deployed a 5G New Radio (NR) network to demonstrate a series of 5G use cases at Untold Festival 2019, the largest annual dance music festival in Romania,

 Read Full article »
MVP Lab in Sibiu named as one of Europe's best in the "Ones to Watch" list at European Business Awards

Ropardo MVP Lab has been named as ‘One to Watch' in Europe in a list of business excellence published by the European Business Awards, one of world's largest and longest running business competitions.

 Read Full article »
Endava marks one year since IPO

Endava, one of the most important software companies, present on the local market with 7 delivery centers, reaches an almost double capitalization, 2.07 billion USD, on July 26, 2019, one year after listing. Th

 Read Full article »
Infosys opens cyber defence centre in Bucharest

Infosys, a global leader in next-generation digital services and consulting, announced the launch of its Cyber Defence Centre in Bucharest, Romania. The Defence Centre is an expansion of services delivered thro

 Read Full article »
QuEST Global completes integration of IT Six Global Services

QuEST Global, a global product engineering and lifecycle services company, has successfully completed the integration of IT Six Global Services SRL. QuEST Global acquired IT Six, a software engineering services

 Read Full article »
RE MAX Romania opens three more offices

RE/MAX Romania has expanded its network, adding three new offices – RE/MAX Partners in Cluj, RE/MAX Quality in Sibiu and RE/MAX Prestige in Targu Mures.

 Read Full article »
Microsoft and OpenAI form exclusive computing partnership to build new Azure AI supercomputing technologies

Microsoft Corp. and OpenAI have partnered to further extend Microsoft Azure's capabilities in large-scale AI systems, according to a release of Microsoft.

 Read Full article »
» Mircea-Catalin Roman, Noerr, guest spe...
» Oracle unveils suite of services to si...
» Genpact's COO: Staying ahead of the cu...
» Indian IT & services industry on track...
» Accounts Receivable Processing - Roman...
» CFOs are taking a better look at their...
» EXCLUSIVE: ABSL Timisoara - BPO and SS...
» SAP beats 2015 targets with cloud sale...
» Cluj: International Cambridge High Sch...
Workplace of the Future conference to take place on November 20th at Bucharest

The Diplomat-Bucharest together with Outsourcing Today organize the 3rd Edition of WORKPLACE OF THE FUTURE, on 20th of November 2019, in Bucharest, at Capital Plaza Hotel.

 Read Full article »
Strategic Talent Acquisition at People Empowering Business Forum on October 30 in Bucharest

Latest trends like demographic upheaval, globalization, digital technology, and changing social values and worker expectations, are disrupting business models and radically changing the workplace. These are req

 Read Full article »
Informal IT School and UiPath launch an educational program for RPA development to start in October

Informal IT School announced a partnership with UiPath to launch an RPA development educational program of five months, 100 hours of courses, five days a week. The program will run in Cluj-Napoca.

 Read Full article »
Impact Hub Bucharest joins 3house to manage three coworking spaces in the city

Impact Hub Bucharest, a coworking spaces manager and developer of accelerator programs and events merged with 3house, a new concept of workplace launched in 2018. By this, Impact Hub reaches 3 locations and 6.7

 Read Full article »
JLL: Total office space in Bucharest to reach 3 million sqm

The second quarter of 2019 reconfirmed the increased interest for the office market in Romania. Over 115,000 square meters of office space were leased over this period at the national level, a value similar wit

 Read Full article »
Latest News  
about us | newsletter | contact | members area | GDPR policy
Copyright © 2015 by Diplomat Media Events Design by Diplomat Media Events