Why A DPO Is A Smart Investment For Managing Global Privacy Compliance

For many U.S.-based companies operating in or expanding into Europe, appointing a Data Protection Officer (DPO) is increasingly seen as a smart investment rather than simply a GDPR requirement. Although the role originated under European data privacy law, in today's globalized marketplace companies operating across borders must navigate a myriad of privacy obligations, including U.S. federal and state laws and regulations, Canadian federal and provincial laws, and the GDPR alongside 27 national implementations across EU member states.

For organizations with international customers, users, or employees, the decision is less about checking a regulatory box and more about choosing the most efficient path to managing global privacy compliance through a coordinated, unified approach.

More than 20 U.S. states now enforce GDPR-style privacy laws, and since the GDPR took effect, most countries have enacted or updated privacy legislation modeled on its framework. Canada continues to strengthen its own privacy regime at both the federal and provincial levels, further adding to an increasingly complex, multi-jurisdictional compliance landscape for companies operating internationally.

For growth-stage companies without dedicated in-house privacy teams, this creates a practical challenge: how to meet overlapping U.S. and international requirements without building separate compliance programs for every market.

Appointing a DPO—particularly through an outsourced model—can help address this challenge by enabling a unified privacy strategy built around the GDPR's higher standard, allowing organizations to meet global requirements through a single, coordinated roadmap.

This article provides a practical overview of when a DPO is legally required, when a voluntary appointment makes sense, and why many U.S.-based companies choose to adopt the role even when not strictly mandated.

When Is a DPO Mandatory?

Under Article 37 of the GDPR, an organization must appoint a DPO when its core activity involves processing operations that include the regular and systematic monitoring of individuals on a large scale. It is important to note that the GDPR applies to any company from the moment they collect or are given access to the personal information of an EU resident; the size of the company is not a factor.

For companies subject to GDPR, a DPO is mandatory when all three of the below elements are present.

1. Data Processing Is a Core Activity

Data processing is considered a core activity when it is essential to achieving the organization's primary business objectives.

For example:

• A hospital depends on processing patient data to provide healthcare. Because data processing is integral to its operations, appointing a DPO is required.
• By contrast, a company that processes personal data of EU-resident employees solely for routine HR purposes is generally engaged in secondary processing and may not be required to appoint a DPO.

The key question is whether the organization could realistically carry out its business without processing personal data.

2. Regular and Systematic Monitoring

The GDPR interprets monitoring broadly¹. It includes activities such as:

• Profiling individuals to make decisions about them
• Analyzing or predicting personal preferences, behavior, or attitudes
• Tracking individuals online using cookies, IP addresses, device identifiers, or similar technologies

“Regular” monitoring refers to processing that is ongoing, recurring, or periodically conducted.

“Systematic” monitoring includes processing that is:

• Integrated into a business model or data collection system
• Organized or methodical
• Conducted as part of a defined strategy or program
  Together, these concepts capture many modern digital business models, including advertising technology, analytics platforms, and data-driven services.

3. Processing on a Large Scale

The GDPR does not provide a precise definition of “large-scale” processing². Instead, organizations are left to assess the totality of circumstances, including:

• The number of individuals affected
• The volume and variety of personal data processed
• The duration or permanence of processing
• The geographical scope of processing activities

Activities involving significant data volumes, affecting large populations, or introducing heightened risks to individuals' rights—such as deployment of new or intrusive technologies—are likely to qualify as large-scale processing.

Voluntary DPO Appointments

Even when not legally required, many organizations choose to appoint a DPO voluntarily because the role helps centralize privacy oversight and simplify compliance across jurisdictions.

This is particularly valuable given the EU's regulatory structure, which allows Member States to adopt supplemental national data protection laws in numerous areas. Navigating overlapping EU and national requirements can be challenging—especially for U.S.-based companies without an established European presence.

A designated DPO can serve as:

• A central point of contact for regulators and individuals
• An internal resource for interpreting guidance from EU authorities and national regulators
• A coordinator who translates legal obligations into operational practices

For many organizations, voluntary appointment can improve consistency, accountability, and responsiveness in privacy compliance efforts.

Role of a DPO in Global Compliance

For U.S.-based organizations operating internationally, a DPO can help align compliance efforts across EU, U.S., and Canadian privacy regimes, reducing duplication and supporting a consistent global privacy framework.

Importantly, the GDPR does not require the DPO to be an internal employee nor to be retained on a full-time basis. Depending on organizational size and processing activities, companies may appoint:

• An internal employee
• An external or outsourced DPO engaged on a retainer basis

For growth-stage companies in particular, outsourcing often provides access to experienced privacy leadership without the cost and complexity of hiring full-time in-house counsel.

Why Outsourcing the DPO Role Makes Sense for Growth Companies

Many scaling companies need senior privacy expertise but lack the workload—or budget—to justify a full-time hire. An outsourced DPO model offers:

• Access to multi-jurisdictional expertise across EU, UK, U.S., Canadian and other applicable privacy laws
• Cost-effective compliance support
• Scalable engagement as products and markets expand
• A single point of coordination for privacy governance

By building compliance programs around GDPR's higher standards, companies can often satisfy emerging North American requirements simultaneously, mutualizing compliance efforts rather than managing multiple separate programs.

Conclusion

Appointing a Data Protection Officer—whether legally required or voluntary—is increasingly less about checking a GDPR compliance box and more about building a practical, scalable internationally privacy governance framework.

For many U.S.-based companies expanding internationally, an outsourced DPO represents a practical investment in risk management and operational efficiency, and can help organizations reduce regulatory exposure while supporting compliant, scalable business growth as privacy laws continue to evolve.

Footnotes

1. Recital 24 defines “monitoring” to include the potential, subsequent use of personal data processing techniques, and Recital 30 adds to this definition the use of online identifiers provided by an individuals' devices, applications, tools and protocols.

2. Recital 91 points to operations that process a considerable amount of personal data, could affect a large number of individuals, and are likely to result in high risk to the rights and freedoms of individuals.

GC provides outside general counsel services to companies of all sizes, offering project-based support, subject-matter expertise, and day-to-day GC services through a team of partner-level business attorneys. For more information visit: Outside General Counsel Corporate Legal Services.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.