There are various benefits of an outsourced DPO, particularly for tech companies looking to stay up to date on GDPR compliance.
In today’s digital age, data is one of the most valuable assets that a company can possess. However, with the increasing number of data breaches and cyber-attacks, data protection has become a significant concern for tech companies. The General Data Protection Regulation (GDPR) introduced by the European Union in 2018 has made it mandatory for companies to appoint a data protection officer (DPO) to ensure compliance with data protection laws. Said GDPR’s provision applies to any company outside Europe, including in the Americas, Asia, or Africa, that offers services online to persons in the EU, plus continue to be mandatory in the UK as part of the UK GDPR.
Even where one has sufficient resources to appoint an in-house DPO, outsourcing this role can offer numerous benefits, particularly for tech companies. It can provide access to a pool of experienced and qualified professionals, be more cost-effective, provide impartiality and independence, including the avoidance of conflict of interest, offer flexibility, and provide peace of mind. For tech companies that may not have the resources to hire an in-house DPO, outsourcing this role is the most effective way to reassure your users, investors, and partners that you are GDPR compliant.
Outsourcing the role of a Data Protection Officer to a third-party provider can provide tech companies with access to experienced and qualified professionals, cost-effectiveness, impartiality, flexibility, and peace of mind.
An outsourced DPO can allow tech companies to access a pool of experienced and qualified professionals who specialise in data protection. These professionals are well-versed in the latest data protection laws and regulations, and have a deep understanding of the risks associated with data breaches. Outsourcing the role of DPO to a third-party provider can ensure that the company has access to the necessary expertise and knowledge required to ensure compliance with data protection laws.
Outsourcing the role of DPO can be more cost-effective for tech companies than hiring an in-house DPO. While an in-house DPO would likely require a full-time salary, benefits, and additional costs such as training and development, outsourcing the role of DPO can be an affordable option as the company only pays for the services that they require. This can be particularly beneficial for small and medium-sized tech companies that may not have the resources to hire a full-time DPO.
It may be tempting to add the DPO role to one of your existing managers or staff, but this will inevitably backfire. It will most likely result in a conflict of interest that data protection authorities tend to penalise, or simply prevent them from thoroughly studying the field of privacy whilst trying to perform their core duties.
Outsourcing the role of a DPO to a third-party team can provide tech companies with flexibility, impartiality, and independence, ensuring compliance with the latest data protection laws and regulations and offering a range of services as required.
An outsourced DPO can also provide tech companies with a level of peace of mind in the complex and ever-changing landscape of data protection. Companies need to ensure that they are constantly up-to-date with the latest data protection laws and regulations. Outsourcing the role of DPO to a third-party team can ensure that the company is always compliant with the latest data protection laws and regulations, providing a level of reassurance that may not be possible with a single in-house DPO. Keep in mind that an increasing number of countries are passing data protection laws, and many of them read like the GDPR with a twist, making compliance difficult for you but rather straightforward for experienced privacy professionals.
Outsourcing the role of DPO can also provide tech companies with a level of flexibility that may not be possible with an in-house DPO. A third-party provider can offer a range of services such as data protection audits, risk assessments, staff training, and incident response planning. Tech companies can choose to use these services as and when they require them, rather than having to hire an in-house DPO who may not be fully utilised. We believe that an outsourced DPO can also provide tech companies with a level of impartiality and independence that may not be possible with an in-house DPO that might be pressured to please the management or colleagues at the cost of increased privacy risks. Outsourcing the role of DPO to a third-party provider can ensure that the company receives an independent and impartial assessment of their data protection practices that will also satisfy the investors, business partners, and data protection authorities.
Having an outsourced DPO in a tech company can ensure data protection is properly handled. On the one hand, it is important to note that all tech companies process personal data, even where only online identifiers such as IP addresses are collected or otherwise processed, which makes data protection a critical aspect of their operations. The processing of personal data by tech companies will also in most cases involve systematic monitoring of personal data on a large scale, which is very common in an online environment, and it is one of the circumstances where the designation of a DPO is mandatory. On the other hand, the evolving tech landscape implies that many data processing activities in this industry may be innovative, which makes it necessary to have the regular support of a DPO, for example when it comes to the performance of Data Protection Impact Assessments. An outsourced DPO has experience not only with a specific technology, but with many different technologies and several businesses operating in the same industry, which leads to a comprehensive understanding of any challenges a tech company may face with regards to data protection. Accordingly, an outsourced DPO can help a tech company to ensure compliance with data protection regulations, such as GDPR and other regulations relevant to the areas in which the tech company operates. This can prevent data breaches that may result in costly fines and reputational damage. Additionally, an outsourced DPO can provide impartial advice and expert guidance on data protection matters, and this is particularly important in tech companies, where data breaches and cyber-attacks are a constant threat. For example, an outsourced DPO can help a mobile app development company ensure that their app is GDPR-compliant, including any measures that would need to be applied in compliance with the data protection by design and by default principle. Overall, having an outsourced DPO can help tech companies protect their customers’ and employees’ personal information, maintain regulatory compliance, and avoid costly data breaches or complaints.
