External data protection officer: benefits and duties
Why many companies choose an external data protection officer.
Data protection is part of everyday business operations—whether when processing customer data, managing human resources, or implementing new software. At the same time, companies often lack the time and expertise internally to reliably address these requirements. An external data protection officer helps companies implement data protection in a structured manner and identify risks early on.
What is an external data protection officer?
An external data protection officer assumes the advisory and monitoring duties required by law on the basis of a service agreement. They contribute expertise and an independent perspective without being employed by the company.
The GDPR allows for this role to be filled by either an internal or external individual. Responsibility for the lawful processing of personal data remains with the company.
What are the responsibilities of an external data protection officer?
Key responsibilities include advising management and employees, as well as monitoring compliance with data protection regulations. These responsibilities also include supporting awareness-raising and training initiatives, providing advice on data protection impact assessments, and collaborating with the relevant supervisory authority.
In practical collaboration, the following topics are often the focus:
- Data protection consulting: Assessing new projects, software solutions, and business processes from a data protection perspective.
- Documentation: Providing advice on privacy notices, data processing agreements, and other data protection documents.
- Protective measures: Reviewing technical and organizational measures and recommending improvements.
- Data subject rights: Assisting with requests for access, rectification, and erasure.
- Data breaches: Providing support in assessing an incident and determining potential reporting obligations.
- Employee training: Raising awareness of data protection and providing practical recommendations for everyday work.
The contract should clearly specify which additional support services are to be provided. This ensures that tasks, responsibilities, and expectations remain transparent.
Expertise Without the Need for Time-Consuming Internal Development
A key advantage of external support is access to specialized knowledge. Companies do not first need to comprehensively train an internal employee and permanently assign them to this additional role.
When selecting a provider, technical understanding and practical experience are just as important as legal knowledge. A data protection officer who is familiar with comparable companies and typical industry processes can better tailor recommendations to the company’s operations.
Relief for Management and Employees
Data protection issues often arise alongside day-to-day business: a customer requests information, a new CRM system is to be implemented, or a service provider needs access to personal data.
Having a dedicated point of contact helps to assess such issues, set priorities, and clarify the next steps. This simplifies decision-making and reduces the need for internal coordination.
Good collaboration is essential. New projects and changes to processes should be communicated early on so that data protection issues can be taken into account during the planning phase.
An Independent View of Existing Processes
An external perspective can help scrutinize established processes and identify risks that have been overlooked. This is particularly useful, for example, when access rights, data sets, or the applications in use have changed over the course of several years.
The necessary independence applies equally to both internal and external data protection officers. Conflicts of interest must also be avoided when outsourcing this role.
Predictable Services and Transparent Costs
External support can simplify budget planning if the scope of services and compensation are clearly agreed upon. Whether it is more cost-effective than an internal solution depends on the actual support needs and available resources.
Before signing a contract, companies should clarify, in particular, whether training, on-site visits, support during data protection incidents, and additional project consulting are included. Equally important are binding agreements regarding availability, coverage, and response times.
When is a Data Protection Officer Required?
In Germany, non-public entities are generally required to appoint a Data Protection Officer if they regularly employ at least 20 people who are permanently engaged in the automated processing of personal data. Thus, the total number of employees is not the sole determining factor.
An obligation to appoint a DPO may also exist independently of this threshold. This applies, for example, to certain large-scale processing operations involving sensitive data or to extensive, regular, and systematic monitoring as a core activity. Processing operations that require a data protection impact assessment may also trigger an obligation to appoint a DPO.
Whether a DPO is required should therefore be assessed based on the company’s specific activities and data processing operations.
How to Ensure Successful Collaboration
Ideally, the process begins with an assessment: What personal data is being processed? Which applications and service providers are involved? What data protection documentation and internal procedures already exist?
Building on this, measures can be prioritized and responsibilities defined. Regular coordination helps address outstanding issues and take new developments into account in a timely manner.
A good external data protection officer explains requirements clearly, openly addresses risks, and takes operational processes into account when making recommendations.
External Data Protection Support for Your Company
Would you like to know whether your company needs a data protection officer or how external support can ease your workload? We can help you assess your needs, review existing processes, and develop appropriate measures.
Contact us—together, we’ll determine what kind of support makes sense for your company.
Sources and Legal Basis
- General Data Protection Regulation (GDPR)—specifically Articles 24 and 37 through 39: Company responsibilities, as well as the appointment, status, and duties of data protection officers. eur-lex.europa.eu
- Section 38 of the Federal Data Protection Act (BDSG): Supplementary German regulations regarding the obligation to appoint a data protection officer for non-public entities. www.gesetze-im-internet.de
- BfDI: “Data Protection Officers in Government Agencies and Businesses”: Explanations regarding the duties and framework conditions of the role.
