Appointing an external data protection officer - what are the costs?

Hiring an external data protection officer offers companies many advantages. One of the most important aspects is the expertise in data protection issues that external DPOs have. They specialize in data protection law and can help companies to act in compliance with the GDPR. In addition, companies can save costs compared to internal data protection officers, as external service providers often work more efficiently. Last but not least, external data protection officers ensure GDPR compliance.

What are the advantages of an external data protection officer?

Expertise in data protection

Data privacy is a very important topic in today's digital world, especially with the increasing use of personal data for various purposes. As data protection experts, we have expertise in the field of data protection laws and regulations, in particular the General Data Protection Regulation (GDPR) in the European Union and other data protection laws worldwide.
Our expertise covers the following areas, among others:

1. advice on the collection, storage and processing of personal data in compliance with the applicable data protection regulations.
2. development and implementation of data protection policies and procedures in companies.
3. conducting data protection audits and reviews to assess a company's data protection practices.
4. training of employees and managers on data protection and data protection regulations.
5. support in reporting data breaches and cooperating with data protection authorities.
With our expertise in data protection, we help companies to keep their data processing practices in line with data protection regulations and to strengthen the trust of their customers and business partners. 

Cost savings compared to internal DPOs

The cost savings compared to an internal data protection officer (DPO) can vary depending on company size, industry and individual requirements.
In general, however, some potential cost savings can be identified when using an external DPO compared to an internal DPO:
1. personnel costs: By using an external DPO, there is no need to employ an in-house DPO, which can lead to savings in terms of salary, benefits, training and education.
2. flexibility and scalability: External DPOs can usually react flexibly to the company's requirements and adapt their range of services as needed. This can mean that companies only pay for the services they actually need instead of keeping a permanent employee on hand.
3. expertise and experience: External DPOs usually have extensive expertise and experience in the field of data protection, as they regularly work with different companies and are up to date with the latest legal requirements and best practices. This can lead to a more efficient and effective fulfillment of DPO duties.
4. resources and technology: External DPOs may have access to specialized resources and technology that may not be available to an internal DPO. Leveraging these resources can improve the efficiency of data protection measures and minimize potential risks.
Overall, the use of an external DPO can therefore lead to significant cost savings, especially for small and medium-sized companies that may not have the resources to employ their own data protection officer.

Ensuring compliance with the GDPR

The following measures should be taken to ensure GDPR compliance:
1) Review and update data protection policies and processes to comply with GDPR requirements
2) Review infrastructure and technologies to ensure that they comply with data protection requirements.
3) Training and sensitization of employees to data protection regulations and compliance with them.
4) Compliance with the principles of data economy and data minimization.
5) Establishment of a data protection officer if this is required by law.
6) Implementation of security measures to protect personal data (e.g. encryption, access controls).
7) Monitoring and documenting data breaches and reporting them to the data protection authority and data subjects.
8) Regular data protection audits and reviews to continuously check and ensure compliance with the GDPR 

What are the costs of hiring an external data protection officer?

Various cost factors arise when hiring an external data protection officer. There are monthly costs that need to be considered in detail. A cost comparison between external and internal data protection officers can be helpful in finding the most economical solution. Companies should keep an eye on the total costs in order to make an informed decision.

Cost factors at a glance

- Fee of the external data protection officer: This may vary depending on the provider and the scope of the service.
- Travel costs: If the data protection officer has to travel to the company for meetings or audits.
- Training costs: Company employees may need to be trained to meet data protection requirements.
- Consultancy costs: If the data protection officer provides additional consultancy services, additional costs may also be incurred here.
- Software or technology costs: The data protection officer may need special tools or software to carry out their work efficiently.
- Legal costs: In the event of legal issues or conflicts, legal costs may also be incurred, which may have to be covered by the external data protection officer. 

Cost comparison: external vs. internal DPO

The appointment of a data protection officer is not only important, but also required by law. Companies that do not comply with this obligation risk high fines. The data protection officer plays a crucial role in data processing and contributes significantly to compliance with data protection regulations. Therefore, the appointment of a DPO should be made carefully in order to avoid legal consequences.

Why is it important to appoint a data protection officer?

Legal requirements for the designation

The appointment of a data protection officer is required by law in Germany and is carried out in accordance with Article 37 of the General Data Protection Regulation (GDPR). According to this provision, a data protection officer must be appointed if the following criteria are met:
1. the processing of personal data takes place in a public body or authority.
2. the processing of personal data involves regular and systematic monitoring of data subjects on a large scale.
3. the processing of special categories of personal data pursuant to Article 9 GDPR or of personal data relating to criminal convictions and offenses pursuant to Article 10 GDPR
In addition, national data protection laws may also impose further requirements for the appointment of a data protection officer. In Germany, the Federal Data Protection Act (BDSG) regulates the specific requirements for the data protection officer.
The data protection officer must be able to act independently and have the necessary expertise in the field of data protection. He or she must be able to monitor compliance with data protection regulations and, if necessary, represent the data protection officer to authorities or the supervisory authority.
The appointment of a data protection officer must be reported to the supervisory authority and registered there. In addition, the data protection officer must be publicly accessible and contactable for those affected.

Fines for non-compliance

The fines for non-compliance with the appointment of a data protection officer are regulated in the General Data Protection Regulation (GDPR). The amount of the fines can vary depending on the type and severity of the breach. Fines of up to €20 million or 4% of a company's global annual turnover can be imposed for breaches of the GDPR. It is therefore important that companies comply with the legal provisions on data protection and, if necessary, appoint a data protection officer in order to avoid fines.

Role of the DPO in data processing

External data protection experts offer a wide range of expertise and ongoing training. They support companies in making operational adjustments to ensure data protection. In addition, companies benefit from protection against dismissal and the expertise of external DPOs, which contributes to a holistic data protection strategy.

What expertise do external data protection experts offer?

Specialist knowledge and further training

External data protection experts offer a variety of specialist knowledge and expertise, including:
1. comprehensive understanding of the relevant data protection laws and regulations, such as the General Data Protection Regulation (GDPR) in the EU or the Data Protection Act in Switzerland.
2. experience in the creation and implementation of data protection policies, procedures and measures.
3. knowledge of data protection technologies and tools for securing sensitive data.
4. skills in dealing with data breaches and creating contingency plans to respond to such incidents.
5. ongoing training and education on current developments in the field of data protection to ensure that they are always up to date.
6. experience in advising companies of different sizes and industries to meet their individual data protection requirements.
7. the ability to answer complex data protection questions and develop practical solutions to data protection problems.
Overall, external data protection experts provide companies with valuable expertise and support to ensure that their data protection practices comply with legal requirements and that their sensitive data is adequately protected.

Operational adjustments by external DPOs

External data protection officers can support companies in making operational adjustments to ensure compliance with data protection regulations. This includes the following measures:
1. analysis and evaluation of the company's data protection practices: External data protection officers can carry out a comprehensive analysis of the company's current data protection practices and identify weaknesses.
2. conducting data protection audits: External data protection officers can conduct regular audits to ensure that the company complies with legal requirements and effectively minimizes data protection risks.
3. employee training: External data protection officers can provide training for employees to raise awareness of data protection issues and promote compliance with data protection regulations.
4. development of privacy policies and procedures: External data protection officers can help the organization develop and implement data protection policies and procedures to ensure that all data protection requirements are met.
5. data protection impact assessment: External data protection officers can support companies in carrying out a data protection impact assessment to identify and evaluate potential risks to personal data.
6. support in the implementation of data protection measures: External data protection officers can help companies implement the necessary technical and organizational measures to ensure the security of personal data.
Overall, external data protection officers can help companies make operational adjustments to ensure compliance with data protection regulations and avoid data breaches.

Dismissal protection and expertise

The protection against dismissal for a data protection officer plays a key role in the decision. In Germany, for example, an internal data protection officer enjoys special protection against dismissal in accordance with Section 4f BDSG, whereas an external data protection officer generally has no special protection against dismissal.
In terms of expertise, both internal and external data protection officers should have in-depth knowledge of data protection. Internal data protection officers usually have a deeper understanding of the company's internal processes and structures, while external data protection officers may have broader experience from different industries and companies.
Ultimately, it is important that both internal and external data protection officers receive regular training to ensure that they have the latest data protection expertise and can perform their duties accordingly.

What are the costs for an external data protection officer?

The costs for an external data protection officer vary depending on the size of the company. Companies can request non-binding cost quotations for external DPOs in order to obtain an overview of the amount and contractual conditions. It is advisable to clarify the costs in advance to ensure transparency and planning security.

Costs depending on company size

The costs for an external data protection officer can vary depending on the size of the company and individual requirements. As a rough estimate, the cost of an external data protection officer for small companies with up to 50 employees is around 250 euros per month. For medium-sized companies with 50 to 250 employees, the costs can be between 250 and 450 euros per month. For larger companies with more than 250 employees, the costs can be up to 1,000 euros or more per month. It is advisable to contact specialized providers such as us directly to obtain specific cost quotes.

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