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Who needs SOC 2 compliance?

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Who needs SOC 2 compliance?

1. Service Organizations: Service organizations that provide tech services and systems to third parties are typically required to demonstrate SOC 2 compliance in order to partner with or provide services to other companies. This includes cloud service providers, software as a service (SaaS) providers, managed service providers, and other technology service organizations.

2. Businesses Utilizing Third-Party Services: Businesses that utilize third-party services for their technology systems, such as cloud storage, software, and other services, are increasingly requiring their service providers to demonstrate SOC 2 compliance. This ensures that the service providers are following best practices for data security and privacy.

3. Regulated Industries: Regulated industries, such as healthcare, finance, and government, are often required by law to ensure their service providers are SOC 2 compliant. This is to ensure that sensitive data is handled and stored securely and in accordance with industry regulations.

4. Internal Auditors: Internal auditors may also require SOC 2 compliance for service providers in order to ensure that the service providers are meeting the necessary security and privacy requirements. This is especially important for organizations that handle sensitive customer data.

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