Why are Buyers asking for Both ISO 27001 and SOC 2?

Over the last two years, more companies have started asking their suppliers for both ISO 27001 certification and a SOC 2 report instead of accepting just one.

For Indian IT and service-based companies working with customers in the US and Europe, this is becoming a common requirement. Businesses should prepare for it rather than wait until a customer asks.

Why do companies need both?

Although ISO 27001 and SOC 2 cover many similar security practices, they serve different purposes and answer different questions.

- ISO 27001 confirms that an organisation has a properly managed information security system that follows an international standard. It focuses on identifying risks, managing information security and continuously improving security practices. The certification is generally valid for three years, with regular surveillance audits.

- SOC 2 is an audit report that explains how an organisation manages its security controls. For a Type 2 report, the auditor also checks whether these controls are working effectively over a specific period. Unlike ISO 27001, SOC 2 provides an audit report rather than a certificate.

European and Asian customers generally recognise ISO 27001, while US-based customers, especially in the technology sector, often prefer SOC 2 reports.

As a result, companies working with customers across these markets may need both.

How are ISO 27001 and SOC 2 connected?

Both frameworks cover several common information security practices, such as:

- Controlling who can access company information.

- Managing changes to systems and processes.

- Responding to security incidents.

- Managing third-party and vendor risks.

- Protecting information through encryption.

- Monitoring systems and activities.

- Maintaining business continuity.

The main challenge comes when companies implement both separately.

They may end up creating two sets of documents, policies and records for almost the same security practices. This increases costs, creates extra work and makes it difficult for employees to manage everything.

A better approach is to build one strong information security system that supports both requirements. This allows organisations to use the same security controls while preparing different evidence and reports for each framework.

What should businesses do?

If customers are asking for both ISO 27001 and SOC 2, starting with ISO 27001 can be a practical approach.

It helps organisations establish a proper information security management system, identify risks and create the required policies and procedures. Once these controls are in place, preparing for SOC 2 becomes easier because the organisation already has a structured security system.

If a company currently needs only SOC 2 but plans to work with European or Asian customers in the future, it should also consider following the ISO 27001 structure from the beginning.

This can help avoid additional work when ISO 27001 certification becomes necessary later.

One more important point: If the same customer is asking for both ISO 27001 and SOC 2, it is worth discussing whether both are actually required. Sometimes, procurement teams include both in their requirements without checking if both are necessary.

A simple discussion can help businesses avoid unnecessary costs and effort.

Conclusion

ISO 27001 and SOC 2 are not competitors. They complement each other and help organisations demonstrate their commitment to information security to customers across different markets.

Rather than managing them as two separate projects, businesses should plan their security controls together. This can save time, reduce duplication and make it easier to meet customer expectations.