What Is SOC 2 and Why Is It Essential for Tech Companies

There are two different audit types: SOC 2 Type 1 assesses the design of controls at a specific point in time. SOC 2 Type II assesses the effectiveness of those controls over a period. 

The Report is based on one or more of the following: 

• Security – protection of system resources  

• Availability – system accessibility for operation and use 

• Processing Integrity – system processing is accurate and timely. 

• Confidentiality – data is protected  

• Privacy – personal information is collected, retained and disposed of correctly. 

What are the benefits of SOC 2 for Tech Companies? 

1. Build trust with customers and stakeholders 

It assures customers and stakeholders that the organisation is serious about protecting their data. Often in the tech sector, customers will ask for proof of security measures before dealing with a company. 

2. Helps mitigate risk by supporting with data protection practices  

It helps to recognise and put right vulnerabilities in your systems and processes, meaning fewer issues down the line. 

3. Can offer a competitive advantage in industries where data handling is critical  

Ina crowded market; SOC 2 can set a company apart from the rest. It demonstrates that a company really does take data governance seriously. Some customers may require a SOC 2 report before they work with an organisation, which can increase market share as the organisation will have access to larger markets. 

4. Demonstrates compliance with industry standards  

Although it isn’t a legal requirement, SOC 2 does align with data privacy regulations and wider industry expectations.  

5. Strengthens internal processes 

Preparing for a SOC 2 audit encourages organisations to investigate their internal processes such as internal documentation and security awareness. 

To conclude, SOC 2 isn’t just a checkbox, it’s a strategic asset which helps tech companies protect data and build lasting customer confidence. Unfortunately, data breaches can damage a company’s reputation overnight, therefore demonstrating robust controls through SOC 2 compliance not only reduces risks, it also introduces organisations to new customers. We would thoroughly recommend organisations in the tech industry to seek the SOC 2 report.