The terms “data sharing agreement” (DSA) and “data contract” often get confused, but they serve distinct purposes in the world of data governance. Both are legal documents, but they address different aspects of data usage and sharing.

1. Data Sharing Agreements (DSAs): Legal Framework for Collaboration
2. Data Contracts: Technical Specifications for Internal Systems
3. Key Differences in a Nutshell
   1. In essence:
4. Choosing the Right Tool for the Job
   1. Case Study
      1. What is Special Personal Information?

Data Sharing Agreements (DSAs): Legal Framework for Collaboration

A DSA outlines the terms and conditions for sharing data between two or more parties. It essentially acts as a roadmap for collaboration, ensuring everyone involved understands:

• Purpose: What data is being shared? Why is it necessary? What are the expected benefits?
• Roles and Responsibilities: Who’s in charge? The agreement clarifies the roles of each party (data controller, processor, etc.) and their corresponding responsibilities for handling data and adhering to regulations (e.g., GDPR).
• Legal Compliance: While not universally mandatory, having a DSA demonstrates accountability and compliance with data protection laws, promoting trust and transparency.
• Data Governance: The DSA establishes rules for managing, accessing, and protecting the data. This ensures all parties adhere to confidentiality agreements and legal obligations.

Data Contracts: Technical Specifications for Internal Systems

A data contract takes a broader perspective, focusing on how data is used and managed within an organization’s systems. Here’s what it typically covers:

• Technical Specifications: Data contracts delve into the technical aspects of data usage. This includes ensuring compatibility between systems, defining service-level agreements (SLAs), and setting quality metrics (e.g., uptime, error rate).
• Data Management Standards: They establish consistent and reliable data handling practices across different departments within the organization. This helps maintain data integrity and facilitates efficient usage.
• Scope of Use: Data contracts specify how data can be used (e.g., development, production). They may also include limitations on how the data can be applied.

Key Differences in a Nutshell

Feature	Data Sharing Agreement (DSA)	Data Contract
Purpose	Governs data sharing between parties	Governs technical usage and management of data
Focus	Roles, responsibilities, compliance	Technical specifications, SLAs
Legal Requirement	Not always mandatory, but recommended	Often part of technical governance
Context	Legal/organizational settings	IT/data management contexts

In essence:

• DSAs focus on the “who,” “what,” “why,” and “how” of data sharing between entities.
• Data contracts deal with the “how” of data usage within technical systems.

Choosing the Right Tool for the Job

Both DSAs and data contracts are crucial elements in data governance. While DSAs focus on the legal and operational aspects of sharing data between entities, data contracts address the technical details of how that data is used within an organization’s systems. By understanding the nuances of each, you can effectively manage data relationships and ensure responsible data usage within and across your organization.

Case Study

One client sought to consolidate client data from multiple business units into a centralized enterprise data warehouse for advanced analytics.

The project, spearheaded by the CIO, involved workshops to outline technical requirements and develop a technical data contract.

However, a significant delay arose when one business unit expressed concerns over sharing special personal information with other units. They were worried about potential misuse of the data and insisted on a data sharing agreement to guarantee that the shared data would remain accessible only to authorized analysts within their team.

What is Special Personal Information?

Special Personal Information, as defined by the Protection of Personal Information Act (POPIA) in South Africa, refers to a specific category of personal information that carries heightened sensitivity. This category includes:

• Religious or philosophical beliefs
• Race or ethnic origin
• Trade union membership
• Political persuasion
• Health or sex life
• Biometric information  
• Criminal behavior related to alleged offenses or proceedings

Due to the sensitive nature of this information, POPIA imposes stricter regulations on its processing. Organizations handling Special Personal Information must implement robust security measures and obtain explicit consent from individuals before collecting, using, or disclosing such data.