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A DPA is a legally binding document signed between the data controller and data processor. The data controller is the person or party that determines how and why the data is processed. The data processor is the party that does the practical work of data processing.
What is an outsourcing agreement? An outsourcing agreement is a legally binding document between you (the client) and the outsourcing company. It details what you expect from the third-party service provider.
Virtually every business relies on third parties to process personal data. Whether it's an email client, a cloud storage service, or website analytics software, you must have a data processing agreement with each of these services to achieve GDPR compliance.
A key benefit of signing a DPA is it outlines business terms with a third-party data processor and guarantees compliance with the relevant data privacy laws. A DPA also helps to create an accountability framework between you and your data processor by establishing contractual obligations.
It regulates the scope and purpose of processing, as well as the relationship between the controller and the processor. The contract is important so that both parties could understand their responsibilities and liabilities.
If you're handling data from others, you need a data processing agreement in place. This legally binding contract establishes the roles and responsibilities of both parties and sets out the terms under which data will be processed.