DPO as a Service: Advantages and Disadvantages after ANPD’s Regulation in Brazil

DPO as a Service: Advantages and Disadvantages after ANPD’s Regulation

The General Data Protection Law (LGPD) requires organizations to appoint a Data Protection Officer (DPO), a role regulated by the National Data Protection Authority (ANPD) through Resolution No. 18 of July 17, 2024, and the guidance guide published on December 18, 2024. The regulation and guide set specific requirements for the appointment, responsibilities, and disclosure of the DPO, including the possibility of contracting through the “DPO as a Service” (DPOaaS) model, which consists of outsourcing this function to specialized firms.

This article explores the advantages and disadvantages of the DPO as a Service model, considering ANPD regulation and market best practices.

Advantages of DPO as a Service

1. Access to Specialized Expertise: Hiring a DPO as a Service ensures that the organization has immediate access to professionals specialized in data protection, with in-depth knowledge of regulations such as the LGPD and GDPR. Moreover, DPOaaS teams are usually multidisciplinary with project management and technical skills, and they are up-to-date with best practices and regulatory changes, especially updates from ANPD and international bodies. This is particularly relevant given the technical autonomy requirements stipulated in the ANPD regulation, in addition to the complexity and specificity of the subject.
2. Compliance for International Organizations The ANPD regulation requires the DPO to be a Portuguese speaker for international organizations operating in Brazil or targeting the Brazilian market. Hiring a local DPO as a Service helps meet this clear and specific requirement while ensuring that language and cultural barriers are addressed effectively, enhancing compliance and communication.
3. Cost Reduction Maintaining an in-house DPO can be costly, considering salaries, labor charges, and ongoing training expenses. The outsourced model allows the company to achieve an excellent cost-benefit ratio when contracting a specialized service provider, whose decision-making accuracy will be exponentially higher, generating financial savings and reducing the need for internal resources dedicated to the subject. It is worth noting that the ANPD regulation does not require the DPO to have specific training or certification, but hiring a highly specialized DPO with proven qualifications can represent a competitive advantage and demonstrate good practices under the LGPD, reducing the risk of penalties.
4. Independence and Impartiality An external DPO acts independently and impartially, minimizing potential conflicts of interest with an internal professional accumulating other organizational functions. The ANPD regulation advises the prevention of conflicts of interest, emphasizing the importance of autonomy in decision-making on data protection.
5. Flexibility and Speed of Implementation Outsourcing allows for rapid service implementation, with teams ready to act from the moment of contracting and the potential scalability of services during peak demand periods. This reduces administrative burdens and ensures that legal requirements are met without delays.
6. Market Practice Knowledge We serve as DPOaaS for various organizations from different sectors, accumulating practical knowledge about common practices and effective strategies. This allows for more assertive advice and informs the company about market trends and approaches.
7. Integration with Internal Liaison The DPO as a Service model can be particularly advantageous when the company already has an internal person acting as a liaison, facilitating communication and understanding of the company’s specific processes. In this context, the external DPO can focus on technical and governance aspects, ensuring legal compliance and implementing best practices. At the same time, the internal liaison maintains alignment with operational and strategic areas.

Disadvantages of DPO as a Service

1. Learning Curve about the Business External professionals may face challenges in fully understanding the culture and internal processes of the organization, which can impact initial efficiency. This may be especially relevant for companies with complex operations requiring specialized sector knowledge. However, experienced professionals who have already managed adaptation and governance processes in other institutions of similar size and industry can easily overcome this point.
2. Dependency on External Providers Hiring an external DPO can create dependency on the service provider.
3. Challenges in Integration with the Internal Team The integration between the external DPO and the other sectors of the organization can be challenging, especially regarding communication flow and alignment of objectives. The regulation stipulates that the DPO must have technical autonomy and participate in strategic decisions, which requires good coordination with internal leadership.

Conclusion

The choice between maintaining an in-house DPO or opting for the DPO as a Service model should consider the organization’s specific needs, the costs involved, the risks of dependency, and the advantages related to specialized expertise. The recent ANPD regulation reinforces the importance of autonomy and transparency in the DPO role, and contracting outsourced services can be an efficient solution for companies seeking to optimize resources and ensure legal compliance.

However, it is essential to ensure that the chosen service provider has proven experience, established best practices, and a proactive approach to meeting legal requirements and the business’s specific demands.

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