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This chapter provides an in-depth examination of the crucial role of data protection, privacy regulations, and industry-specific regulations in IT sourcing initiatives. It details the steps required for adherence to laws such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA), covering topics from understanding regulatory requirements and implementing internal measures to vendor selection and monitoring. It also highlights the importance of industry-specific regulations, exploring how these govern the handling of sensitive data, security, and operational integrity. The piece serves as a guide on how to integrate regulatory requirements into contracts, vendor evaluation, compliance monitoring, and how to foster a culture of compliance through ongoing training and education. This chapter is a valuable resource for anyone seeking to mitigate risks associated with non-compliance, protect their reputation, and maintain customer trust in their IT sourcing initiatives.