Outsourced DPO — When to Entrust the Data Protection Officer Function to an External Expert

Appointing a Data Protection Officer (DPO) — mandatory for many organisations, recommended for all — poses a practical question: hire a DPO as an employee or use an outsourced service? The GDPR expressly permits both models (Article 37(6)), and the choice depends on the size of the organisation, the scope of data processing, the budget, and industry specifics.

In Poland, DPO outsourcing is growing in popularity — particularly among small and medium-sized companies and public entities that lack the resources for a full-time specialist. This article analyses when outsourcing is the optimal solution, what benefits and risks it carries, and what to consider when selecting an external DPO.

Legal Basis — Article 37(6) GDPR

Article 37(6) of the GDPR expressly provides that the DPO may be a staff member of the controller or processor, or fulfil the tasks on the basis of a service contract. The latter means outsourcing — entrusting the DPO function to an external entity (a natural person or a company).

Crucially, an external DPO is subject to exactly the same GDPR provisions as an internal DPO — the guarantee of independence (Article 38(3)), the prohibition on penalties for performing their tasks, direct access to senior management, the duty of confidentiality, and access to resources. The form of engagement does not affect the scope of the DPO’s duties or powers.

When Is DPO Outsourcing the Optimal Solution?

Based on market practice and EDPB guidance, outsourcing is the best choice in the following situations:

Small and medium-sized enterprises (SMEs) — organisations that must appoint a DPO (e.g., because they process special category data or conduct systematic monitoring) but lack the budget for a full-time specialist with the requisite qualifications. The salary of an experienced in-house DPO runs to several thousand euros per month — outsourcing provides the same level of expertise at a fraction of the cost.

Public entities with limited budgets — municipalities, schools, medical clinics, libraries, social welfare centres — are obliged to appoint a DPO (as public bodies) but have constrained budgets for legal and compliance services. A single external DPO can serve several public entities simultaneously, reducing the unit cost.

Organisations at risk of conflict of interest — if the organisation has no one who could serve as DPO without a conflict of interest (e.g., the only candidates are the IT director, HR director, or a lawyer who decides on processing), outsourcing eliminates the problem. An external DPO by definition has no conflict of interest — they are outside the client’s organisational structure.

Companies needing a broad team of competencies — an effective DPO must combine legal knowledge (GDPR, sectoral regulations), technical expertise (IT, cybersecurity), and audit experience. Rarely does a single person possess all these competencies at a high level. Outsourcing to a law firm or consultancy provides access to a team of experts — lawyers, IT specialists, auditors — rather than a single individual.

Organisations beginning their GDPR implementation — companies building their data protection system from scratch need intensive support initially (audit, documentation, training), followed mainly by monitoring and advisory. Outsourcing allows the scope of service to be flexibly adapted to the implementation stage.

International companies with operations in Poland — foreign companies operating in Poland need a DPO familiar with Polish law, UODO practice, and the local regulatory context. An external DPO in Poland provides this knowledge without the need to create a local position.

Benefits of DPO Outsourcing

Full independence — an external DPO is not subject to internal organisational pressure. They are not afraid to issue a negative recommendation because they are not dependent on a supervisor’s assessment. This is a fundamental advantage — DPO independence is one of the most frequently violated GDPR requirements, and the external model eliminates this problem structurally.

Access to current knowledge — an external DPO serves multiple clients across different industries and stays up to date with the latest CJEU case law, UODO decisions, EDPB guidelines, and legislative changes (AI Act, NIS2, Data Act). An internal DPO, focused on a single organisation, may not track developments with the same intensity.

A team rather than one person — a law firm or consultancy serving as DPO provides the support of a specialist team. If the lead DPO is unavailable (holiday, illness), a deputy ensures continuity. If a matter requires specialist technical knowledge, the team includes an IT specialist.

Cost flexibility — instead of a fixed salary (plus social contributions, training, tools, benefits), the organisation pays a fixed monthly fee for the service or on an hourly basis. The scope of service can be adapted to needs — from minimal monitoring to intensive project support.

Audit experience — an external DPO regularly conducts audits across different clients and sees patterns of violations, typical gaps, and market best practices. This experience translates into higher quality recommendations.

No staffing issues — an in-house DPO may leave the company, demand a raise, or go on extended leave. Outsourcing ensures service continuity regardless of personnel turnover.

Risks and Challenges of DPO Outsourcing

Outsourcing is not without challenges:

Less physical presence — an external DPO is not in the office every day. Solution: regular visits (e.g., every 2–4 weeks), permanent remote availability (phone, email, video calls), and a clearly defined response time in the contract.

Onboarding required — the external DPO must get to know the organisation — processes, systems, structure, culture. The initial period requires more intensive collaboration. Solution: a good DPO conducts an initial audit that simultaneously serves as onboarding.

Risk of superficial service — the market includes offers such as “DPO from EUR 50/month” that in practice mean minimal engagement — a formal designation of a person who does not carry out any real activity. Solution: choose a DPO based on competencies and service scope, not price.

Confidentiality — the external DPO has access to sensitive organisational information. Solution: a confidentiality agreement and professional standards (a legal counsel is subject to professional secrecy).

What to Look for When Choosing an External DPO

Not everyone offering DPO outsourcing services is the right choice. Key criteria:

Qualifications and experience — the DPO should have legal knowledge (ideally: a legal counsel or attorney specialising in data protection), practical experience (GDPR implementations, audits, breach handling), and familiarity with the client’s industry. Certifications (CIPP/E, CIPM, ISO 27001 Lead Auditor) are an additional asset, though not legally required.

Scope of service — ask what the service specifically includes. The minimum scope should cover: performing the DPO function in accordance with Article 39 GDPR (informing, advising, monitoring), availability to staff and data subjects, cooperation with the supervisory authority, support with breach handling, periodic reviews and audits, and staff training. Additional services may include: preparation and updating of documentation, conducting DPIAs, support with processing agreements, and project advisory (new systems, new processes).

Availability and response time — how quickly does the DPO respond to enquiries? How quickly do they react to a breach? The contract should specify an SLA (Service Level Agreement) — e.g., breach response time: 4 hours, enquiry response time: 24 hours.

Substitutability — what happens if the DPO is unavailable? Is a deputy with appropriate qualifications designated?

Professional indemnity insurance — does the DPO carry professional liability insurance in case of advisory errors?

References — can the DPO name organisations they serve? What industry experience do they have?

No conflict of interest — does the DPO simultaneously provide services that could conflict with the DPO function (e.g., are they also a supplier of an IT system they audit)?

What DPO Outsourcing Looks Like in Practice

A typical outsourcing model comprises:

Stage 1: Initial audit (month 1) The external DPO conducts a GDPR compliance audit, identifies gaps, and prepares a report with recommendations. This simultaneously serves as onboarding — the DPO gets to know the organisation, processes, and systems.

Stage 2: Implementing recommendations (months 2–3) The DPO supports the organisation in eliminating identified gaps: updating documentation (ROPA, privacy notices, processing agreements), implementing missing procedures (breaches, data subject rights, retention), and training staff.

Stage 3: Ongoing service (continuous) The DPO serves on a permanent basis: monitoring compliance, advising on new projects, handling staff and data subject enquiries, cooperating with the supervisory authority, updating documentation, conducting periodic reviews and training, and supporting breach and data subject request handling.

Communication: Regular status meetings (e.g., monthly or quarterly), permanent remote availability (phone, email), on-site visits (e.g., every 2–4 weeks, depending on needs), and an annual report to the board with a compliance assessment and recommendations.

DPO Outsourcing and UODO Registration

The controller must notify UODO of the DPO designation within 14 days (Article 10 of the Polish Data Protection Act). This also applies to an external DPO.

The notification includes the DPO’s personal details (name, email, phone), not the details of the firm providing the outsourcing service. This means that the individual person is listed as the DPO in the UODO DPO Database — even if the service is provided by a law firm.

If the person serving as DPO changes (e.g., a change of lead consultant at the firm), the controller must update the UODO notification within 14 days.

DPO Outsourcing for a Group of Entities

Article 37(2) of the GDPR permits the designation of a single DPO for a group of undertakings, provided the DPO is easily accessible from each undertaking. This solution is ideal for corporate groups and related organisations.

Similarly, a single external DPO may serve several unrelated organisations simultaneously (e.g., several small companies, several municipalities). The condition: the DPO must have sufficient resources and time to diligently perform their tasks for each client.

The EDPB in Guidelines WP 243 emphasises that designating a single DPO for multiple entities must not lead to a reduction in service quality. The DPO must be able to effectively monitor compliance and be accessible to each client.

DPO Outsourcing Costs — Approximate Ranges

The cost depends on the size of the organisation, the scope of processing, the industry, and the scope of service:

Micro/small company (up to 50 employees) — from several hundred to several thousand PLN per month.

Medium company (50–250 employees) — from several to a dozen thousand PLN per month.

Public entity (municipality, school, clinic) — from several hundred to several thousand PLN per month, depending on scope.

Group of entities — discounts when serving multiple entities simultaneously.

The initial audit and implementation of recommendations are typically a separate (one-off) cost, incurred at the start of the relationship.

For comparison: a full-time DPO with appropriate qualifications costs approximately PLN 10,000–20,000 per month in total employer cost (salary + social contributions + training + tools).

Checklist — DPO Outsourcing

1. Assess whether your organisation is required to appoint a DPO (Article 37 GDPR).
2. If so — decide: in-house or outsourced DPO?
3. Check for conflicts of interest that would prevent an internal appointment.
4. Choose a DPO based on qualifications, experience, and service scope — not price.
5. Define the service scope: minimum is Article 39 GDPR + availability + UODO cooperation.
6. Specify the SLA — breach response time, enquiry response time.
7. Ensure substitutability — who serves as DPO when the lead is unavailable?
8. Sign a DPO service agreement — specifying duties, availability, and confidentiality.
9. Notify UODO within 14 days.
10. Publish DPO contact details — on the website and in privacy notices.
11. Plan an initial audit — at the start of the engagement.
12. Set the frequency of reviews and reporting — at least an annual report to the board.

Need an External DPO?

At the Law Office of Dr Joanna Maniszewska-Ejsmont, we provide outsourced Data Protection Officer services for companies and public institutions. As a legal counsel specialising in personal data protection, I ensure full independence, ongoing legal support, GDPR compliance monitoring, and readiness for UODO audits.

Every engagement begins with an initial audit that allows us to get to know the organisation and immediately identify the most critical gaps. We provide permanent availability, regular reviews, and staff training.