Introduction
As Cybersecurity Risks & Data Privacy regulations evolve, Organisations must adopt structured frameworks to manage Information Security. Two of the most recognised standards are ISO 27001 & SOC 2. While both offer robust approaches to security, they differ in scope, purpose & suitability depending on Business Objectives.
This article explores the difference between ISO 27001 & SOC 2, helping you determine which Standard best fits your company’s compliance & Client trust requirements.
What is ISO 27001?
ISO/IEC 27001 is an international Standard published by the International organisation for Standardization [ISO]. It provides a comprehensive Framework for implementing an Information Security Management System [ISMS].
Key Features of ISO 27001:
- Global standard: Recognised across industries & geographies.
- ISMS-based approach: Focuses on managing security Risks through people, processes & technology.
- Risk Assessment-driven: Requires formal identification, analysis & treatment of Risks.
- Certification: Conducted by accredited Certification Bodies.
ISO 27001 is ideal for companies that want to build a long-term, scalable & internationally recognised Security Framework.
What is SOC 2?
System & Organisation Controls 2 [SOC2] is an auditing procedure developed by the American Institute of Certified Public Accountants [AICPA]. It evaluates an organisation’s controls over data based on the Trust Services Criteria.
Key Features of SOC 2:
- U.S.-centric standard: Primarily adopted in North America.
- Focus on controls: Assesses security, availability, processing integrity, confidentiality & Privacy.
- Audit-based: Issued as an attestation report by a Licensed CPA Firm.
- Two types:
- Type I: Evaluates design of controls at a point in time.
- Type II: Assesses operational effectiveness over a defined period (typically 3-12 months).
SOC 2 is suitable for service-based Organisations looking to assure clients about internal Security Controls.
Key Difference between ISO 27001 & SOC 2
| Aspect | ISO 27001 | SOC 2 |
| Origin | International [ISO] | U.S. [AICPA] |
| Focus | Information Security Management System | Trust Service Criteria (Security + 4 others) |
| Approach | Risk-based, holistic | Control-based, Audit-driven |
| Output | Certification | Attestation report |
| Audit Body | Accredited ISO certifier | Licensed CPA Firm |
| Applicability | Global businesses across sectors | Mostly U.S.-based service providers |
| Audit Frequency | Every 3 years (with annual surveillance) | Annually (especially Type II) |
Which Framework is Right for your Business?
Choosing between ISO 27001 & SOC 2 depends on your business type, geographic footprint & Customer expectations:
- Choose ISO 27001 if:
- You serve global clients or operate internationally.
- You want to build a mature, Risk-based ISMS.
- You require alignment with other ISO standards (such as ISO 9001, ISO 27701).
- Choose SOC 2 if:
- Your clients are primarily in the U.S.
- You are a SaaS, cloud or technology service provider.
- Your customers request a Third Party attestation of controls.
ISO 27001 vs SOC 2: Industry Adoption
| Industry | Preferred Standard |
| SaaS Providers | SOC 2 (Type II) |
| Healthcare | Both (depending on region) |
| Financial Services | ISO 27001 + SOC 2 (optional) |
| Government Vendors | ISO 27001 |
| E-commerce Platforms | SOC 2 |
| B2B Enterprises | ISO 27001 or SOC 2 |
While SOC 2 is common in tech ecosystems, ISO 27001 is often preferred in regulated or global sectors.
Compliance Costs & Timelines
| Factor | ISO 27001 | SOC 2 |
| Preparation Time | 4-12 months | 3-6 months |
| Audit Duration | 2-4 weeks | Type I: 2-4 weeks; Type II: 3-12 months |
| Certification Cost | $6,000–$15,000+ | $10,000–$30,000+ |
| Maintenance Cost | Moderate (annual surveillance) | High (annual re-Audits) |
The cost & effort vary depending on your Organisation’s size, maturity & existing security posture.
Can You Pursue Both?
Yes. Many Organisations pursue both ISO 27001 & SOC 2 to meet diverse Customer expectations across different markets. In fact, overlapping controls such as access management, Incident Response & Risk Assessments make it possible to map SOC 2 controls to ISO 27001 clauses & streamline efforts.
Some modern compliance tools even allow businesses to maintain dual readiness with shared documentation, control libraries & automated evidence collection.
Conclusion
When it comes to the difference between ISO 27001 & SOC 2, there is no one-size-fits-all. ISO 27001 is ideal for establishing a global, Risk-driven ISMS, while SOC 2 is focused on proving operational control effectiveness-especially for U.S.-based clients.
If your customers are asking for one or both, aligning your compliance roadmap with the right Framework-or both-will not only enhance your trustworthiness but also reduce your Risk exposure.
Takeaways
- ISO 27001 is a global Standard for building an Information Security program.
- SOC 2 is a U.S.-based Audit that demonstrates trust service control effectiveness.
- The difference between ISO 27001 & SOC 2 lies in their scope, output & audience.
- Consider your clients’ location, industry & expectations to choose the right one.
- Pursuing both can enhance credibility & satisfy a wider range of Stakeholders.
FAQ
What is an important key difference between ISO 27001 & SOC 2?
ISO 27001 focuses on building & maintaining an Information Security Management System [ISMS], while SOC 2 evaluates & reports on the effectiveness of internal controls based on trust criteria.
Do I need both ISO 27001 & SOC 2?
Not necessarily. It depends on your Client base & industry. However, having both can increase your appeal to the global & U.S.-based clients simultaneously.
Is ISO 27001 Certification more difficult than SOC 2?
ISO 27001 involves building a comprehensive ISMS & requires continuous management & documentation. SOC 2 is Audit-focused but also demands strong internal processes, especially for Type II.
Who performs ISO 27001 & SOC 2 Audits?
ISO 27001 Audits are conducted by accredited ISO Certification Bodies whereas licensed CPA firms are responsible for performing SOC 2 Audits.
Which Standard is better for a SaaS company?
SOC 2 is typically the go-to for SaaS Providers, especially those serving U.S. clients. However, ISO 27001 is beneficial if you have international customers.
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