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External Service Providers
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External Service Providers
What ESP Agreements Include
What ESP Agreements Include
- An External Service Provider (ESP) is a third-party that performs work for an organisation based on an agreement made between the two parties.
- The agreements made are referred to as a service-level agreement (SLA).
- They can provide many different services, such as:
- Cloud Computing
- Hardware Support
- Software Support
The Implications of ESP Agreements
Legal Ownership and Jurisdiction
- When your agreement ends with an ESP, who owns that data or software?
- This would likely be written in the SLA but may not favor the business.
- Jurisdiction may be an issue with the use of cloud storage.
- With cloud storage our data will be saved on the ESPs servers, which may be subject to other laws.
- Could also breach EU data protection law.
Security Protection
- You are reliant on ESPs having adequate security practices.
- Data should be kept private & have appropriate security measures, like encryption and a well defined disaster recovery procedure.
- Failure of the ESP to do so can leave your business liable for any data breaches and loss or damage to data.
Dispute Resolution
- Dispute resolution processes should be defined in the SLA.
- Usually resolved through friendly consultation or mitigation.
- If not the legal process required which is judged on statutory requirements under law.
- Can be complicated if ESP is based in different legal jurisdiction to the business.
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