To mitigate the subcontracting risks, it is necessary to specify all the conditions under which ICT third-party service providersan undertaking providing ICT services can use subcontractors for the provision of ICT servicesdigital and data services provided through ICT systems to one or more internal or external users on an ongoing basis, including hardware as a service and hardware services which includes the provision of technical support via software or firmware updates by the hardware provider, excluding traditional analogue telephone services supporting critical or important functionsa function the disruption of which would materially impair the financial performance of a financial entity, or the soundness or continuity of its services and activities, or the discontinued, defective or failed performance of that function would materially impair the continuing compliance of a financial entity with the conditions and obligations of its authorisation, or with its other obligations under applicable financial services law. For this purpose, ICT contractual arrangements between financial entitiesas defined in Article 2, points (a) to (t) and ICT third-party service providersan undertaking providing ICT services should set out such conditions, including the planning of subcontracting arrangements, the risk assessments, the due diligence, and the approval process for new ICT subcontracting arrangements on ICT servicesdigital and data services provided through ICT systems to one or more internal or external users on an ongoing basis, including hardware as a service and hardware services which includes the provision of technical support via software or firmware updates by the hardware provider, excluding traditional analogue telephone services supporting critical or important functionsa function the disruption of which would materially impair the financial performance of a financial entity, or the soundness or continuity of its services and activities, or the discontinued, defective or failed performance of that function would materially impair the continuing compliance of a financial entity with the conditions and obligations of its authorisation, or with its other obligations under applicable financial services law or material parts thereof, or material changes to existing ones made by the ICT third-party service provideran undertaking providing ICT services.