Before May 2018, most organizations assumed they were compliant with data protection laws unless there was tangible evidence to the contrary. However, the introduction of the General Data Protection Regulation (GDPR) marked a turning point in data privacy and compliance obligations across the EU—and globally for businesses handling EU citizens’ data.
Today, under GDPR and other host nation privacy laws, organisations must actively demonstrate compliance. If they fail, the consequences can be financially devastating. Regulatory fines can reach up to €20 million / £17.5 million or 4% of global turnover—whichever is higher (Article 83(5) GDPR).
In this new era of proactive compliance, Article 37 of the GDPR mandates that certain organisations appoint a Data Protection Officer (DPO). While many choose to hire internally, an increasing number are opting for outsourced DPO services—a cost-effective, strategic solution for complex privacy needs.
Let’s explore what an outsourced DPO is, why your organisation may benefit, and what to look for in a trusted partner like Anchor.
What is a Data Protection Officer?
A Data Protection Officer (DPO) is a legally required role under GDPR for companies that handle large-scale data processing. The DPO’s primary responsibility is to ensure that the organisation’s data processing operations are compliant with GDPR and other applicable data protection laws.
The role includes:
- Monitoring internal compliance
- Advising on data protection obligations
- Training staff
- Conducting audits and impact assessments
- Acting as a liaison between the organisation and regulators
It’s important to note that GDPR doesn’t require a DPO based solely on company size, but rather on:
- The scale and nature of processing
- The type and sensitivity of data
- How long the data is retained
- The number and scope of data subjects involved
- The geographical span of operations
What is an Outsourced Data Protection Officer (DPO)?
An outsourced DPO is a third-party service that performs the functions of an internal DPO without being a full-time employee. Businesses outsource DPO duties to expert consultancies or legal professionals like Anchor, who specialise in privacy law, GDPR compliance, and data risk mitigation.
Outsourcing gives organisations the ability to:
- Tap into expert knowledge
- Avoid hiring or training costs
- Stay up to date with evolving privacy laws
- Ensure independence, as required by GDPR
This model is particularly popular with SMEs, startups, and organisations operating across multiple jurisdictions.
The Benefits of Outsourcing Your DPO
Below is a table summarising the key benefits of outsourcing your DPO compared to hiring in-house:
| Benefit | In-House DPO | Outsourced DPO (e.g. Anchor) |
| Cost-Efficiency | High salary, benefits, training costs | Fixed monthly fee, no overhead |
| Expertise | May require ongoing training | Immediate access to seasoned professionals |
| Independence | Risk of conflict of interest | Guaranteed impartiality |
| Risk Management | Limited capacity for multi-region regulations | Global compliance strategy & legal cover |
| Scalability | One person for all tasks | Entire team with specialists |
| Flexibility | Fixed working hours | Available on-demand or 24/7 plans |
| Continuity | Vulnerable to turnover | Stable, contract-based support |
Let’s dig deeper into some of these advantages:
1. Improve Your Cost-Efficiency
Recruiting, training, and retaining a skilled DPO is expensive. Turnover is common, and the recruitment cycle can be lengthy. Anchor’s outsourced DPO services offer predictable, scalable pricing without the HR headaches.
2. Minimise Risk and Liability
GDPR protects internal DPOs from dismissal due to their decisions—which can complicate accountability. An external DPO carries professional liability insurance, giving your organisation additional protection.
3. Maximise Internal Productivity
Instead of burdening an internal employee with dual responsibilities, an external DPO ensures that your team can focus on core operations, while compliance is expertly managed.
4. Access Real-Time Expertise
Anchor and similar outsourced DPO providers employ privacy lawyers, cybersecurity experts, and compliance officers. Their depth of knowledge goes beyond any single employee’s capability.
5. Satisfy GDPR’s Independence Clause
Internal DPOs might face conflicts of interest if they’re involved in decision-making. An external DPO, however, ensures objective auditing and advisory, keeping your business safely within legal boundaries.
Critical Questions to Ask When Choosing an Outsourced DPO Partner
If you’re considering a partner like Anchor to fulfil your DPO obligations, ensure they meet essential criteria. These questions will help you evaluate the capability, transparency, and trustworthiness of any outsourced DPO service:
1. What value will you bring to our organisation?
Look for a clear, results-driven plan. Anchor, for example, provides pre-engagement audits to map existing gaps and demonstrate ROI.
2. How do you remain current on data protection regulations?
GDPR is dynamic. Your DPO partner must track legislative changes in the EU, UK, and other jurisdictions relevant to your operations.
3. Will we have a dedicated contact or account manager?
A dedicated consultant who understands your business is essential. Anchor assigns named DPO consultants to every client.
4. Do you have experience in our industry?
Data risks differ in healthcare, fintech, education, and e-commerce. Anchor tailors compliance strategies to sector-specific needs.
5. Can you provide examples of handling a data breach?
A strong DPO should have incident response experience, from breach notification to mitigation and communication with regulators.
6. What certifications or qualifications do your consultants have?
Look for CIPP/E, CIPM, ISO 27001 certifications and legal credentials.
7. How do your audit and compliance checks work?
Anchor follows a structured audit framework that includes Privacy Impact Assessments (PIAs), Records of Processing Activities (RoPAs), and Technical & Organisational Measures (TOMs).
8. Do you assist in training internal staff?
The best DPOs don’t just advise; they empower your employees with GDPR awareness sessions and ongoing training.
9. How is your liability insurance structured?
Make sure the partner carries professional indemnity insurance for added assurance.
10. Can you scale with us as we grow?
Ensure your partner can grow with you—whether you expand into new markets or handle increased data processing volumes.
11. What’s included in your consultation hours and what incurs extra charges?
Get clarity on what’s included in your retainer or contract to avoid surprise costs.
Why Anchor is the Right Outsourced DPO Partner
Anchor stands out as a top-tier outsourced DPO service in the UK and EU markets. Their data-first, compliance-centric approach combines legal acumen, technical depth, and regulatory fluency.
Here’s what sets Anchor apart:
- Dedicated GDPR specialists with years of experience
- Industry-specific consulting in finance, healthcare, and tech
- 24/7 support for critical compliance issues
- Custom TOMs, RoPAs, and DPIAs
- A clear, affordable monthly retainer model
Outsourced DPO: Take the Next Step for Your Business
In today’s privacy-conscious digital economy, failing to proactively manage your data responsibilities is no longer an option. Whether you’re a small business or a multinational organisation, having an expert to guide your compliance strategy is essential to long-term success.
By choosing an outsourced DPO partner like Anchor, you benefit from world-class expertise, lower overheads, and peace of mind.
If you’re still unsure, download our free GDPR Compliance Checklist or request a consultation with our team.
Key Takeaway
Outsourcing your DPO is not just a trend—it’s a smart business strategy. Make sure you choose a partner who can deliver security, value, and confidence.
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