How Will GDPR Affect IT Companies?

If you are into an IT business or an IT company owner, you must be aware about the date – 25th May 2018. On this day, the General Data Protection Regulation will be implemented throughout Europe replacing the old Data Protection Act. It is such a law that has been frame worked in Europe but does not exempt IT companies worldwide.

The statement, “does not exempt anyone” might have brought in some skepticism you and left you wondering whether to fear GDPR or consider it as an advantage. Well, whatever it is, it has been agreed upon that it will have an impact on all businesses irrespective of their size, type and country origin. This time, let’s study it as an opportunity for the B2B ecommerce businesses.

Insights About GDPR

In order to analyze GDPR as an opportunity, first we need to get a thorough knowledge of what is GDPR? If we focus on the term E-Business; one can correlate it with words like internet, marketing and massive data. These companies are able to carry about marketing activities on the internet through the use of massive data. And that’s what GDPR is all about.

GDPR deals with protection of the data related to individuals and control over its usage by data users. Here the 3 words- Data, Individuals and Data Users can be bifurcated further. Data includes information like Corporate data, IP addresses, cookies, email Ids and much more which is stored digitally. Individuals include Customers, clients and even visitors on website. Data users mean the website or e-business owners.

The GDPR protects the information of European citizens by making it obligatory for the e-business owners to adopt the customer ‘Opt-In and Opt-Out approach’. So, from 25th may 2018 whenever you send marketing mails to European customers, first ensure that they have subscribed to your business services. Once they opt-in, you can get access to their information. Then on, you need to keep them informing about what did you do with their data, what was the purpose and the like.

Your European customers should get an opt out option too. Wherein you cannot get access to their information if they deny for the same. Your European customers have the power under GDPR rules to order immediate deletion of any data that has been already used or they may even completely deny subscription to your business services. Then on, if you send them marketing mails, you can be sued by them under GDPR for violation and non-compliance to GDPR regulations. Your penalty amount can be fine up to 4% of your annual turnover.

What is the GDPR compliance procedure for IT companies?

It’s a call for the companies who provide IT based products and deal with European citizens by using their data. All these companies are required to go by GDPR data rules.

Erasure of EU citizens data

The companies that deal with European citizens in any manner, the first and foremost GDPR compliance asks for them to erase all the EU data till date before GDPR comes into effect. Otherwise it will be considered to be the breach of data and the companies will be levied with a fine.

Check on Compliance Tools

After the erasure of the unlawful data, the companies need to check if they possess necessary tools that enables them to comply with the GDPR rules. They will need to bring all the records and documentation and see if it contains any information that is illegal according to GDPR regulations.

Know the concept of Opt-In

A new term added in the GDPR dictionary is Customer Opt-in, i.e. Customer consent. So, it's imperative for companies to know the definition of consent according to GDPR guidelines. It won’t be possible to deal with any EU citizens with regard to the business without their prior consent. Before undertaking any marketing activity, the companies need to seek permission from the citizens.

The Opt-Out Option

It is possible to conduct marketing activities and deal with EU citizens only if they have opted in. If they haven't, it means they are not interested in dealing with you and they will opt out. As a part of it, they unsubscribe from your emails and opt out from cold calls, etc. Thereafter, if the company tries to send interruptive emails or try to interact with them in some way, it amounts to theft of their information and may invite penalty.

Compliance by detailing about information

Now onwards whenever Information Technology based companies deal with EU citizens after getting their consent, they need to comply with the GDPR rules by keeping the EU customers informed about every bit of data. The EU citizens must be informed about the purpose for the data collection, the stage where it has reached and how has it been utilized. GDPR even empowers EU citizens to seek immediate deletion of the information that has been utilized by IT companies.

Protection and Monitoring of Data

If once with the permission of the EU citizens, the company gains access to their information, it is important to comply to GDPR. It is important to keep the data under continuous protection and monitoring. One must be careful as to the data which is held is not be hacked or misused. This is because, if an EU citizen denies access to information, it is advisable not to approach them in any manner or they may sue you in a court of law.

Complying with these rules can become much easier if you consult a legal assistant. Apart from this, it seems to be fearsome but lays down peculiar advantages for your business when you got to deal with EU citizens.

The merits of GDPR are pinpointed below:

Protection of Data

GDPR compliance first of all renders protection of EU citizens’ data. It secures the citizens’ privacy as no businesses can gain access to their information without their permission. Without their opt-in, the companies won't be able to interrupt them with their marketing emails or cold callings, etc. If the citizens show interest in the services rendered by e-businesses, they will be able to keep a track over their data flow and its usage.

Well-Defined Portal

Not just beneficial for European citizens, the GDPR is advantageous for Information Technology companies who deal with EU citizens. Companies are enabled to develop a well-defined portal wherein they are clear as to who are their customers and to whom they have to keep updating about their products and services. Customers interested will opt-in and not interested will opt out. So, it thereby saves companies’ time and money as they get real customers.

Implant Safe Data collection and Management

The IT Companies will now be able to collect information they wish to, from their EU customer with their permission. So, they get complete information that is needed. And after the data is utilized, it is to be deleted. So, it provides a safer and better data collection and its management method.

Conclusion

The countdown has already begun. If you are an Information Technology based company and you deal with European citizens you must comply with GDPR. Apart from the stringent GDPR rules, it pinpoints the various advantages GDPR renders for IT companies. It need not be taken as risk factor. Instead it encourages a proactive approach on part of e-businesses across the world thereby spreading awareness among the customers about how their data is collected and used.

We, at Biztech Consultancy, are committed to providing you with quality service along with a safe and secure experience. In support of the upcoming changes to EU data protection law as part of the GDPR, we’re further beefing up our data security protocols and updating our Terms of Service that govern our relationship with you.