GDPR and offshore development: keeping UK and EU data safe with a team in India

If your business is in the UK or the EU and your developers are in India, GDPR does not stop you working together - but it does mean the arrangement has to be set up properly. This guide explains, in plain language, what UK and EU companies need to put in place and what a good development partner should already be doing. It is a practical overview, not legal advice; for your specific situation, speak to your data protection adviser.

Does GDPR apply when developers are outside Europe?

Yes. If your company is established in the EU or UK, or you offer services to people there, GDPR (or UK GDPR) covers the personal data you hold - wherever it is processed. When an overseas developer can access that data, for example to fix a bug on the live server or migrate your customer records, that counts as processing, and often as an international data transfer.

Your role and your partner's role

In a typical software project, your company is the controller: you decide why and how the data is used. The development company is a processor: it only handles the data to build, host or support the system on your instructions. GDPR requires a written data processing agreement (DPA) between the two, covering confidentiality, security, sub-processors, breach notification and deletion at the end of the contract.

Transferring data to India

India does not currently have an EU adequacy decision, so data cannot flow there on the same basis as within the EU. In practice, EU companies usually rely on the European Commission's Standard Contractual Clauses (SCCs) - Module 2 for a controller-to-processor relationship - together with a transfer impact assessment that considers local law and the safeguards in place. UK companies use the UK's International Data Transfer Agreement or the UK Addendum to the EU SCCs.

India's own Digital Personal Data Protection Act 2023 also applies to data processed in India, so a responsible partner should be following both.

The best approach: keep personal data out of development

The simplest way to reduce risk is for developers never to need real personal data at all:

• Host in your region. Keep the production database on UK or EU servers. The code is written in India; the data stays in Europe.
• Use test data. Build and test on realistic dummy or anonymised data rather than copies of live customer records.
• Limit live access. Only named senior engineers get production access, only when needed, and every access is logged.
• Encrypt everything. HTTPS everywhere, encrypted backups, and sensitive fields encrypted in the database.
• Build privacy features in. Consent records, data export, right-to-erasure tools and retention rules belong in the specification from day one.

Questions to ask any offshore development company

1. Will you sign our DPA and the relevant SCCs or UK transfer agreement?
2. Where will our data be hosted, and who can access production?
3. How do you handle test data?
4. Which sub-processors (hosting, email, SMS, analytics) will the system use?
5. How quickly will you tell us about a security incident?
6. What happens to our data and access when the contract ends?

A partner who answers these clearly, without hesitation, has done it before.

How OASIS works with UK and EU clients

We build CRM and lead management systems, EDM data platforms, B2B portals and recruitment portals for clients across the UK and the EU. We can work under your data processing agreement and host your system on servers in your region. If you are planning a project, read our guide to outsourcing software development to India or talk to us about your requirements.