GDPR compliance and your vendors: the hidden risk in your data ecosystem

Dec 19, 2025

Many organisations have strengthened data protection within their own environment, but overlook a critical area: third-party vendors. Under GDPR, you remain responsible for how personal data is handled by the processors you work with. 

From our data protection and compliance work at GSI Associates, we see several common categories of external data processors: 

  • Cloud accounting and ERP platforms 
  • HR and payroll providers 
  • Managed IT and cyber security services 
  • Translation and interpreting partners handling legal, HR and commercial documents 
  • CRM, marketing and customer service tools 

If a vendor suffers a data breach or handles information improperly, regulators and affected individuals will still look to your organisation for answers. 

Key questions to ask every data-handling vendor 

  1. Where is personal data stored, backed up and processed (including countries and infrastructure)? 
  1. Which security measures, encryption standards and access controls are in place? 
  1. Who inside the vendor’s organisation can access your data, and under what conditions? 
  1. How quickly will they notify you in the event of an incident or breach? 
  1. What happens to the data when the contract ends, is it deleted, anonymised or returned? 

Maintaining an up-to-date register of all processors, with clear data processing agreements and periodic reviews, is essential for genuine GDPR compliance. 

If you need help mapping your data flows, assessing vendor risk or updating contracts, GSI Associates can provide practical GDPR and governance support. 

Interested in our work?

If you would like to learn more about GSI and our work, or you would like to cooperate with us, send us a message anytime.