NDA – Non-Disclosure Agreement

NDA: advisable when engaging an external IT service provider

Those responsible in many companies do not give any thought to the security of their data when engaging an IT service provider. However, this can have serious consequences. It is therefore always advisable to sign a Non-Disclosure Agreement. This is a confidentiality agreement under which the contracting party agrees not to disclose certain information to third parties. This is of paramount importance when engaging an external service provider. When the relevant services are carried out internally, employees are subject to professional and trade secrecy. This applies automatically – without a specific contract. It prohibits the disclosure of information considered confidential with respect to the public or competitors. However, external service providers are not covered by this, making it essential to govern the relevant provisions contractually.

Why is it important to protect data using NDAs?

A company possesses a large volume of data that should not be made public. Competitors would benefit, for example, if the IT service provider disclosed the manufacturing 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 engage an external IT service provider to maintain the systems, that provider has full access to all sensitive data. In many cases, IT specialists even need to view the data as part of their work – for instance, if their task is to develop a program to evaluate the information. If adequate protection is not agreed upon here, it can have severe consequences for the client. It is therefore important to conclude an NDA before issuing a contract.

What content should the NDA include?

To ensure that the Non-disclosure Agreement reliably protects the data, it is essential 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 individuals covered by it. Furthermore, it is important to define precisely what confidentiality entails. In doing so, it is advisable to specify which information is subject to confidentiality. In addition to the mere disclosure of data, the contract can also describe access rights to specially secured areas and the required conduct in these areas. It is also sensible to define exceptions – such as information the service provider already possessed prior to entering into the contract or legally obtained via third parties. Moreover, it is recommended to address the surrender of data upon completion of the assignment. In this way, the client prevents the information from remaining in the service provider's possession.

These are the services New Media Service GmbH offers for NDAs

New Media Service GmbH offers various services related to Non-disclosure Agreements. These include training for data protection officers within the company. They also encompass statutory notifications of changes that apply to NDAs with other service providers. Furthermore, New Media Service GmbH performs a security check. This highlights which data is accessible and requires special protection. Finally, the company creates a generic NDA that clients can use as a template.

If you would like to find out more about the benefits of hyper-converged systems, you can simply contact us for a free and non-binding consultation. We would be pleased to inform you about this topic and, if required, take care of the implementation and execution for you.