Introduction
India's IT and BPO industry is the backbone of the global services economy, with companies ranging from multinational giants to specialised startups processing personal data on behalf of European clients. This processing relationship places Indian IT companies squarely within the scope of the EU's General Data Protection Regulation - they act as data processors under GDPR while simultaneously being data fiduciaries or processors under India's DPDPA for their own employees, customers, and business operations. Managing dual compliance is not optional; it is a business-critical requirement. European clients increasingly require contractual GDPR compliance as a condition of engagement, and failure to comply can result in lost contracts, regulatory penalties in both jurisdictions, and reputational damage that undermines the trust upon which the entire IT services industry depends.
Understanding Your Dual Role
The first step in dual compliance is understanding your organisation's role under each law. When an Indian IT company processes personal data on behalf of a European client, it acts as a 'data processor' under the GDPR and a 'data processor' under the DPDPA. The obligations differ significantly between these roles. Under GDPR, data processors must process data only on documented instructions from the controller, implement appropriate technical and organisational security measures, assist the controller in responding to data subject requests, notify the controller of personal data breaches without undue delay, and delete or return data upon termination of the engagement. Under the DPDPA, the obligations of data processors are less detailed - the Act primarily holds data fiduciaries responsible and requires them to ensure their processors comply through contractual terms. However, Indian IT companies also process personal data as data fiduciaries in their own right - employee data, vendor data, and their own customer data. For this processing, they bear full data fiduciary obligations under the DPDPA.
- As GDPR data processor: obligations derive from Data Processing Agreements with EU controllers
- As DPDPA data processor: obligations derive from contractual terms with data fiduciaries
- As DPDPA data fiduciary: full obligations for own employee, vendor, and business data
- Many Indian IT companies hold all three roles simultaneously, requiring distinct compliance tracks
Data Processing Agreements: The Foundation of Compliance
For Indian IT companies, the Data Processing Agreement (DPA) is the central compliance document governing their GDPR obligations. Every engagement involving the processing of European personal data must be covered by a DPA that meets the requirements of GDPR Article 28. The DPA must specify the subject matter and duration of processing, the nature and purpose of processing, the type of personal data and categories of data subjects, and the obligations and rights of the controller. It must also address sub-processing, security measures, breach notification, data subject rights assistance, audit rights, and data return or deletion upon termination. Many Indian IT companies use template DPAs provided by their European clients, but it is essential to review these carefully to ensure the obligations are achievable and to negotiate terms where necessary. Under the DPDPA, while there is no prescribed DPA format, organisations should ensure that contracts with their own data processors include comparable terms covering scope, security, breach notification, and data handling upon termination.
Cross-Border Data Transfers: Navigating Both Frameworks
Cross-border data transfers are the most operationally complex aspect of dual compliance for Indian IT companies. When European personal data is transferred to India for processing, GDPR requires a valid transfer mechanism. India does not have an EU adequacy decision, so Indian companies must rely on Standard Contractual Clauses (SCCs), Binding Corporate Rules (BCRs) for intra-group transfers, or specific derogations. Following the Schrems II decision, Transfer Impact Assessments (TIAs) are also required to evaluate whether the recipient country's laws provide adequate protection. Indian IT companies should proactively prepare TIA documentation addressing India's legal framework, including the DPDPA's protections, government access provisions, and judicial oversight mechanisms. Under the DPDPA, transfers from India to EU countries are not restricted - the EU is unlikely to appear on the DPDPA's negative list. However, Indian companies must monitor the negative list for any restrictions that could affect transfers to other jurisdictions where they or their clients operate.
- Standard Contractual Clauses (SCCs): the most commonly used mechanism for EU-to-India transfers
- Transfer Impact Assessments: required post-Schrems II to evaluate India's legal protections
- Binding Corporate Rules: suitable for large IT companies with EU subsidiaries
- DPDPA negative list monitoring: ensure outbound transfers from India are not restricted
- Contract review: verify that all client agreements address transfer mechanisms appropriately
Security Requirements: Meeting the Higher Standard
Both the GDPR and DPDPA require organisations to implement appropriate security measures to protect personal data. The GDPR specifies that measures should include pseudonymisation and encryption, the ability to ensure ongoing confidentiality, integrity, availability, and resilience of systems, the ability to restore data availability promptly after an incident, and regular testing and evaluation of security measures. The DPDPA requires 'reasonable security safeguards' without prescribing specific technical measures. For dual compliance, Indian IT companies should implement GDPR-level security measures across their operations, as these will exceed the DPDPA's requirements. Industry certifications like ISO 27001, SOC 2 Type II, and ISO 27701 provide structured frameworks for demonstrating security compliance to both regulators and clients. Many European clients require these certifications as a contractual condition, making them de facto compliance requirements for Indian IT companies.
Breach Notification: Managing Dual Obligations
Data breach notification under dual compliance requires careful coordination. Under the GDPR, data processors must notify their controller 'without undue delay' after becoming aware of a breach. The controller then has 72 hours to notify the relevant Data Protection Authority. Under the DPDPA, data fiduciaries must notify the DPBI within 72 hours and affected Data Principals without undue delay. For Indian IT companies acting as GDPR processors, the priority is immediate notification to the European controller - typically within the timeframe specified in the DPA, often 24-48 hours. The controller then handles regulatory notification. For breaches affecting the company's own DPDPA-covered data (employee data, business data), the company must notify the DPBI directly. The challenge arises when a single breach affects both European and Indian data. In such cases, dual notification tracks must run simultaneously - informing the European controller under GDPR obligations while separately notifying the DPBI under DPDPA obligations. Pre-established breach response playbooks that address both scenarios are essential.
Employee Data: A Dual Compliance Hotspot
Indian IT companies with employees in both India and the EU face dual compliance obligations for employee data processing. EU-based employees' data is subject to GDPR, while Indian employees' data falls under the DPDPA. Processing activities like payroll, performance management, health benefits, and background verification often involve transferring employee data across borders. For EU employees, the company must identify a GDPR-compliant legal basis for each processing activity - typically contractual necessity or legitimate interests for most employment-related processing, with consent reserved for non-essential processing like employee surveys or wellness programmes. For Indian employees, the company must provide DPDPA-compliant notices, obtain consent where 'legitimate uses' exemptions do not apply, and implement rights fulfilment workflows. HR systems must be configured to apply the correct compliance rules based on the employee's jurisdiction, ensuring that EU employees receive GDPR-level protections and Indian employees receive DPDPA-level protections.
- Map employee data processing activities to applicable laws based on employee location
- Implement jurisdiction-aware HR systems that apply correct consent and notice requirements
- Ensure cross-border employee data transfers (e.g., centralised HR systems) have valid transfer mechanisms
- Provide multilingual privacy notices to employees in both jurisdictions
- Build rights request workflows that route to the correct process based on the employee's jurisdiction
Building a Unified Compliance Programme
Rather than maintaining separate GDPR and DPDPA compliance programmes, Indian IT companies should build a unified framework that addresses both laws through a single set of policies, processes, and tools. Start by mapping each DPDPA requirement against its GDPR equivalent to identify overlaps. For overlapping requirements - which represent the majority - implement the higher standard. For divergent requirements, such as the DPDPA's multilingual notice mandate or the GDPR's Data Protection Impact Assessment requirement, implement both as complementary components of the unified programme. Centralise compliance governance under a single team or officer who has expertise in both frameworks. Use a single data inventory that tags each data element with its applicable jurisdictions. Deploy a unified consent management platform that supports both GDPR-style lawful basis documentation and DPDPA-style purpose-specific consent with multilingual notices.
How Kraver.ai Enables Dual Compliance for Indian IT Companies
Kraver.ai was designed with the Indian IT industry's dual compliance challenge in mind. Our platform provides a unified view of your data processing activities mapped against both GDPR and DPDPA requirements, highlighting where you meet both standards and where gaps exist. The consent and notice management module supports the distinct requirements of each law - GDPR lawful basis documentation alongside DPDPA multilingual standalone notices. Cross-border transfer management tracks GDPR transfer mechanisms (SCCs, BCRs) for EU-to-India flows and monitors the DPDPA negative list for India-outbound flows. Breach notification workflows support dual-track reporting to European controllers and the DPBI simultaneously. For Indian IT companies, Kraver.ai is the compliance platform that speaks both languages - GDPR and DPDPA - so you do not have to choose between them.