This article outlines some key issues companies should consider regarding the processing of personal information in UK outsourcing transactions. In particular it explains: the principles that the DPA contains concerning the processing of personal data (see box, the DPA’s data protection principles);what types of data the DPA covers; the key rights that the DPA gives to data subjects; The consequences for companies of breaching the DPA and the key issues that arise in outsourcing transactions as a result of the DPA’s requirements.