Introduction
As businesses expand their operations across borders, the regulatory landscape they must navigate complex global privacy compliance challenges. Companies are now faced with the challenge of adhering to multiple, often conflicting, international data privacy laws. From the GDPR in Europe to the Digital Personal Data Protection Act (DPDPA) in India and other regional regulations, managing compliance can quickly become overwhelming. One of the critical decisions companies face is whether to maintain one or multiple internal Data Protection Officers (DPOs) to handle this load or to outsource their DPO needs to an external, expert-driven service like Formiti Global Data Privacy Services.
The Complexity of Global Data Protection Laws
Every region brings its own unique set of data privacy laws and requirements. The GDPR, for example, is known for its strict data protection standards and penalties for non-compliance, whereas newer laws such as the DPDPA in India present challenges due to their novelty and evolving nature. The United States, with its patchwork of state-level laws such as the California Consumer Privacy Act (CCPA), adds yet another layer of complexity.
For a company expanding across multiple regions, having the right data protection strategy is crucial. But how should a company manage this complexity? Should they hire internal DPOs for each region, or is there a more efficient way?
The Internal DPO Model: Challenges and Costs
Hiring an internal DPO offers the benefit of in-house expertise, with someone who understands the company’s specific operations and culture. However, this model is fraught with challenges when expanding internationally. Each region requires a DPO to be well-versed in local data protection laws. To remain compliant across regions, companies would often need to hire multiple DPOs or expect a single individual to become an expert in every relevant law—a near-impossible task.
The financial burden of this approach is significant. The salary of a DPO with global expertise can easily surpass six figures, and when factoring in the need for multiple DPOs in different regions, the costs multiply. On top of this, there are ongoing costs related to training and staying up-to-date with the latest legal developments. A company managing compliance in six regions could easily face hundreds of thousands in annual expenses for DPO salaries alone, without considering the costs of missed compliance deadlines, fines, or breaches due to gaps in knowledge.
Formiti Global Data Privacy Services: A Streamlined Solution
In contrast to the internal DPO model, outsourcing data protection responsibilities to a specialised service offers a streamlined, cost-effective approach. Formiti’s Global Data Privacy Services, particularly their Global Outsourced DPO service, provide an innovative alternative.
Formiti offers a one-stop solution, supported by three experienced teams with global expertise. These teams can immediately address the company’s compliance needs across all regions, ensuring there are no gaps in knowledge or application of regional laws. With a comprehensive understanding of regulations like the GDPR, CCPA, DPDPA, and more, Formiti can manage a company’s data protection strategy holistically.
This outsourced model significantly reduces costs. Instead of hiring multiple in-house DPOs, a company can rely on a single service that provides continuous, up-to-date guidance on all relevant data privacy laws. Formiti’s service is not just reactive but proactive—helping companies anticipate and adapt to new regulations as they emerge.
Comparing Costs: Internal vs. Outsourced
When comparing the costs of maintaining an internal DPO setup versus outsourcing, the advantages of outsourcing are clear. Hiring a DPO internally for each region involves not only the high salary costs but also recruitment expenses, onboarding, and the ongoing need for training. Multiply this by the number of regions a company operates in, and the costs quickly spiral.
By contrast, Formiti’s outsourced service offers a more predictable and lower-cost solution. Instead of paying for multiple DPO salaries, companies pay a single service fee, which covers all their data privacy needs across regions ensuring global privacy compliance This can lead to significant savings, especially for companies operating in more than three or four regions. Moreover, outsourcing eliminates the risk of gaps in compliance due to DPOs who may lack expertise in certain laws or who cannot keep pace with rapidly changing regulations.
Outsourcing as a Strategic Advantage
Beyond cost considerations, outsourcing provides a strategic advantage. Companies can focus on their core operations while leaving the complexities of data protection to experts. With Formiti’s global teams, companies have access to a network of specialists who are fully immersed in the nuances of international data privacy laws. These teams are not limited by geographical or jurisdictional constraints, making them ideally suited to support companies with global operations.
Furthermore, Formiti’s outsourced service model provides scalability and flexibility. Whether a company expands into new regions or faces changes in existing regulations, the outsourced DPO can adjust to meet those needs. This adaptability ensures that the company remains compliant without the need to invest in additional internal resources.
Conclusion
For businesses expanding internationally, the choice between maintaining multiple internal DPOs or outsourcing to a global data privacy service is crucial. While an internal DPO setup may seem beneficial for a single region, the complexity and cost of managing compliance across multiple regions can be overwhelming. Formiti’s Global Data Privacy Services offer a cost-effective, expert-backed solution that simplifies compliance management while providing peace of mind.
Choosing the right data protection strategy is not just about compliance—it’s about global privacy compliance ensuring long-term success in a rapidly changing regulatory landscape.