Lesson 7.6: Vendors and processor contracts

Module 7 · Lesson 7.6 of 8 · About 30 minutes · Vendors and processor contracts

Your vendor is your risk. Contract and check. This DPDPA 2023 course page explains vendors and processor contracts in plain language.

vendors and processor contracts - DPDPA 2023 course lesson banner
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What you will learn about vendors and processor contracts

  • Run vendor due diligence
  • Use a contract checklist
  • Plan offboarding

Two checks (vendors and processor contracts)

Before onboarding: does the vendor meet your safeguards? After onboarding: do they keep to them?

Vendor lifecycle

Select a numbered box to read more.

11 Select22 Contract33 Monitor44 Incident55 Exit
Tap or click a step to see exactly what to do.
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Due diligence questions (vendors and processor contracts)

QuestionWhy
Where is data storedTransfers
Who can accessSecurity
Sub-processorsChain risk
Breach historyRisk
CertificationsAssurance

Worked example

Before signing with a new CRM provider, the firm asks the five questions and gets a written reply.

Activity (5 minutes) (vendors and processor contracts)

Check your top three vendor contracts for the six clauses in Module 2, lesson 4.

Key takeaway: Keep one standard addendum to attach to every vendor contract.

Check your understanding of vendors and processor contracts

Q1. Vendor contract should require:

Q2. At exit, vendor should:

Q3. Review vendors:

Educational material for learning purposes, not legal advice. Check the official text of the DPDP Act, 2023, the DPDP Rules, 2025 and MeitY notifications for the latest position.

Official sources for vendors and processor contracts: Digital Personal Data Protection Rules, 2025 (MeitY, PDF) and DPDP Rules 2025, English text (PDF). Always check the latest official notifications.