Procurement Glossary

Data Processing Agreement

Data Processing Agreement means privacy and data handling terms. Learn why it matters when buying, renewing, or replacing business software.

Definition

Data Processing Agreement refers to privacy and data handling terms. In SaaS procurement, this term can affect security approval, total cost, administrator workload, renewal timing, or the ability to switch vendors later.

Questions to ask vendors

  • Is this capability included in the plan being quoted?
  • Does it require an add-on, higher edition, or implementation service?
  • Which team owns configuration and ongoing review?
  • Can the vendor document how this works before contract signature?