For companies with clients in the EU, there is a requirement for strict data handling and privacy measures that fundamentally affect how they manage customer information: compliance with the GDPR or General Data Protection Regulation.
The question that will arise is this: "How much will compliance cost my company?"
If you are tired of looking for transparent GDPR compliance prices and want to understand factors that contribute to GDPR compliance, we wrote this blog for you. Of course, the solutions for this compliance could simply be using the tools you have properly deployed at the low end, to having to invest into systems that could be a significant technology investment at the high end.
As a Managed Security Services Provider (MSSP) with experience handling compliance needs across industries, we’ve written this article to guide you on your journey towards GDPR compliance. Sean Harris, ITS Senior VP for Cybersecurity, will answer the following questions about GDPR compliance costs:
- How much does GDPR compliance cost?
- What factors affect the price?
Our commitment is to keep this discussion as simple and high-level as possible. By the end of the article, you will understand the associated costs of GDPR compliance, enabling you to evaluate your resources and decide if you’re ready to become GDPR compliant.
How much does GDPR compliance cost?
GDPR compliance can seem a bit overwhelming to companies, with one of the more daunting aspects of GDPR compliance being the investment required to achieve compliance.
Harris notes that expenses can range dramatically, from $20,000 to $100,000, depending largely on the company's current infrastructure, complexity and operational scale.
Smaller enterprises might face lower costs, but the complexity increases exponentially for larger corporations with more extensive digital footprints.
“For example, one of our client’s websites has specific ways that cookies are saved,” Harris explained. “It's collecting data on people that visit the website. One example of a GDPR requirement is the ‘right to be forgotten’ officially known as the 'right of erasure ’which allows individuals to request the deletion of their personal data under certain circumstances.”
“This can be an easy task or a very complex task depending on how the website and other systems were originally built.”
What factors affect GDPR compliance cost?
Because there’s no one-cost-fits-all price tag for GDPR compliance, here are some of the factors you should look at. These will have a direct impact on your bill.
1. Technical requirements
Where are you right now with your IT, and how far are you from where you need to be? Maybe you’re still using Windows 7, or your equipment runs on legacy code incompatible with modern security measures.
Well, the technical requirements of GDPR, such as the right to be forgotten, will pose a bigger challenge, especially if you have legacy systems. You might even have multiple platforms – which is often the case in company acquisitions.
You’ll need to expect higher costs due to the increased complexity in integrating and managing these systems under GDPR guidelines.
“Data can be stored in various locations, and before the implementation of GDPR and other regulations, storage decisions were often based on convenience or efficiency,” Harris explained. "For instance, a custom database might store data in numerous places. If the original programmer is no longer available, finding an efficient way to erase specific data from that database can be challenging."
“Will you be able to comply given your systems?”
Sometimes it takes a lot of time to retrofit your IT systems, and the more work you need to do, the higher the expenses.
2. Company size and scope
The scale of your business also directly influences the cost. For example, a small two-person shop will face different compliance costs versus a larger organization with multiple locations and international reach.
The complexity and cost escalate with the size of the company and its operations.
“When I'm getting quotes from auditing firms,” Harris said, “how many different people are there or how many machines or computers or devices? How many different types of devices?”
Depending on your answers, your GDPR costs either be lower or higher than you expected.
3. Data management practices
The way a company collects, stores, and manages data impacts the effort and resources needed for GDPR compliance. Requirements such as the right to be forgotten mandate you to have systems that efficiently process data deletion requests.
4. Locations
The number of operational locations, especially in different countries, adds to the compliance costs. More locations often mean more regulations to consider and more systems to harmonize.
"I have a client here in Sacramento with a website that serves customers worldwide," Harris said. "They must ensure that their website and business practices comply with GDPR, CCPA, and other relevant regulations across many different countries and regions."
5. Certifications and legal requirements
Depending on your compliance needs, you may have more regulations and legal requirements than GDPR.
For example, industries handling more sensitive personal data (e.g., healthcare, financial services) will incur higher costs because they need stricter data protection measures with regulations such as HIPAA and CMMC.
Want to find out how much GDPR compliance will cost you?
GDPR compliance remains a complex, potentially expensive, while essential consideration for many businesses in 2024. The journey towards compliance is never-ending, with continuous updates and adjustments necessary to align with evolving legal frameworks and technological advancements.
For businesses, the key to successful compliance lies in understanding the specific requirements of their operations and investing in robust systems that can adapt to these demanding regulatory environments.
As an MSSP specializing in helping companies with compliance, we’ve prepared the following resources to guide you on your compliance journey:
And if you want a more specialized estimate for your possible compliance cost, schedule a meeting with our compliance experts. Get a quote – for free.
