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an organisation which handles data on the instructions of another individual or organisation is a...

An organisation which handles data on the instructions of another individual or organisation is a data processor.

What this means

  • A data processor is any person or organisation that processes personal data on behalf of a data controller, strictly following the controller’s instructions.
  • Typical examples include cloud‑hosting providers, payroll services, marketing agencies, and IT‑support firms that store or analyse customer or employee data for a client.

How it differs from a controller

Role| Who they are| Key responsibility
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Data controller| The individual or organisation that decides why and how data is used. 35| Sets purposes, lawful basis, retention periods, and oversees processors.
Data processor| The organisation that carries out processing on the controller’s instructions. 379| Processes data only as directed (e.g., storage, analysis, mailing) and must keep it secure.

In short, if one organisation is just doing the work with data under someone else’s orders, it is acting as a data processor.