Hello K S ,
It’s not DLP that recommends to be installed in DMZ but its the environment that is in DMZ where we basically function.
This is basically true for the network part of DLP ( Network monitor , E-mail prevent, Web prevent ) and as per the technology this is the end of the network chain where the data is open to the world and hence companies put this portion of the network into DMZ ( Proxy, MTA, or TAP \ SPAN ). Now if the System is in DMZ, DLP has to work within the DMZ only.
Please let me know if that answers your quarry.
Thanks,
Sourav