5  NDA – Non-Disclosure Agreement

NDA – Non-Disclosure Agreement

by | 20. November 2023 | IT-Glossary-EN

Many companies use the services of an external service provider to maintain their IT systems, to develop and install new programs and to adapt the infrastructure to new tasks. It makes sense to agree a non-disclosure agreement (NDA). This article explains what this agreement is and why it is essential when hiring an external service provider.

NDA: useful when commissioning an external IT service provider

Many companies do not think about the security of their data when hiring an IT service provider. However, this can have serious consequences. It is therefore always advisable to sign a non-disclosure agreement. This is a non-disclosure agreement. In it, the contractual partner agrees not to disclose certain information to other persons. This is very important when hiring an external service provider. If the relevant services are performed internally, the employees are subject to trade and business secrecy. This applies automatically – without the need for a special contract. It prohibits the disclosure of information that is considered confidential to the public or competitors. However, external service providers are not covered by this, so it is important to contractually regulate the corresponding provisions.


Why is it important to protect data with NDAs?

A company has a large amount of data that should not be made public. Competitors, for example, would benefit if the IT service provider made public the production techniques used, details of a newly developed product or general business strategies. Companies therefore usually store this information on a specially secured server. If they now commission an external IT service provider to maintain the systems, the latter has full access to all sensitive data. In many cases, the IT specialists even need to view the data for work-related reasons – for example, if their task is to develop a program to evaluate the information. If adequate protection is not agreed, this can have serious consequences for the client. It is therefore important to conclude an NDA before placing an order.


What should the NDA contain?

To ensure that the non-disclosure agreement reliably protects the data, it is important to regulate the rules for handling confidential information in detail. Necessary contract contents include, for example, the duration of the agreement and the specification of the persons affected by it. It is also important to define what exactly confidentiality entails. It makes sense to specify which information is subject to confidentiality. In addition to the pure disclosure of data, the contract can also describe access rights to specially secured areas and the desired behavior. It also makes sense to define exceptions – for example, information that the service provider already has before the contract is concluded or that it obtains legally via third parties. It is also advisable to consider the release of the data after the end of the contract. In this way, the client prevents the information from remaining in the possession of the service provider.

Die New Media Service GmbH bietet diese Dienstleistungen für NDAs an

New Media Service GmbH offers various services relating to non-disclosure agreements. These include training for the company’s data protection officers. They also include legal notification of changes that apply to NDAs with other service providers. In addition, New Media Service GmbH carries out a security check. This shows which data is accessible and requires special protection. Finally, the company creates a generic NDA that customers can use as a template.

If you would like to find out more about the benefits of Hyper Converged Systems, simply contact us for a free, no-obligation consultation. We will be happy to provide you with information on this topic and, if required, take care of implementation and realization for you.