SOC 2 vs ISO 27001: which framework does your business need?
The short answer is that neither framework is universally better. ISO 27001 is the internationally recognised standard for information security management, while SOC 2 is a US attestation framework commonly requested by American organisations. The right choice depends on your customers, your markets and your commercial objectives.
For many UK organisations, ISO 27001 is generally the best place to start. Businesses selling into the US, particularly in the technology and SaaS sectors, are often asked to provide a SOC 2 report. As organisations grow internationally, many ultimately achieve both.
In this guide, we’ll compare SOC 2 vs ISO 27001, explain where they overlap, and help you decide which framework best fits your business.
The short answer
For most UK organisations, the decision comes down to where your customers are and what they expect. ISO 27001 is an internationally recognised certification that demonstrates your organisation has implemented an effective Information Security Management System (ISMS). SOC 2 is a US attestation report that assesses how you manage security controls against the American Institute of Certified Public Accountants (AICPA) Trust Services Criteria.
If you’re a UK organisation primarily selling into the UK or Europe, ISO 27001 is the best place to start because it’s recognised worldwide and frequently requested during supplier due diligence. In our experience, UK and EU startups that then want to expand into the US market will need to consider adding SOC 2. ISO 27001 may help you win work in the short term, however not having SOC2 will likely become a blocker.
For many growing organisations, the answer isn’t choosing one or the other. ISO 27001 provides a strong international foundation, while SOC 2 helps satisfy the expectations of the US market and larger enterprise clients. As a result, many businesses ultimately achieve both as they expand into new sectors and territories.
What is ISO 27001?
ISO 27001 is the internationally recognised standard for information security management. It provides a structured framework for identifying, managing and continually improving information security risks through the implementation of an Information Security Management System (ISMS).
To achieve ISO 27001 certification, your organisation is assessed by an independent certification body to confirm that your ISMS meets the requirements of the standard. Successful organisations receive a certificate that is valid for three years, subject to annual surveillance audits that confirm the management system continues to operate effectively.
ISO 27001 is well suited to organisations of all sizes that want to demonstrate a recognised commitment to information security. It’s particularly valuable for businesses working across international markets, operating in regulated sectors, or responding to customer and supplier requirements for independently certified security management. It is indispensable for SaaS companies working in the business to business (B2B) space.
What is SOC 2?
SOC 2 is a security attestation framework developed by the American Institute of Certified Public Accountants (AICPA). Rather than certifying your organisation against a management system standard, it assesses whether your controls meet the Trust Services Criteria, which cover areas such as security, availability, processing integrity, confidentiality and privacy.
A SOC 2 report is issued by a licensed Certified Public Accountant (CPA) firm. There are two types of report. SOC 2 Type I assesses whether the relevant controls are suitably designed at a specific point in time, while SOC 2 Type II evaluates how effectively those controls operate over a defined period, typically 1 year, although 3 months is acceptable when first being assessed.
SOC 2 is best suited to organisations that provide technology, cloud or SaaS services, particularly those working with US customers. Many American enterprises expect suppliers to provide a SOC 2 report as part of their procurement or security due diligence process.
SOC 2 vs ISO 27001: the key differences at a glance
Both frameworks help organisations demonstrate strong information security practices, but they do so in different ways. ISO 27001 results in an internationally recognised certification, while SOC 2 provides an independent attestation report against the Trust Services Criteria. The table below summarises the main differences.
While these differences are important, they shouldn’t be viewed as competing frameworks. Both are designed to provide assurance that your organisation manages information security effectively, and many businesses implement both to meet the expectations of customers in different markets.
How much do SOC 2 and ISO 27001 overlap?
Although SOC 2 and ISO 27001 are different frameworks, they have a significant amount in common. Both require organisations to establish effective information security controls, manage risk and demonstrate that security and data protection are embedded within day-to-day operations. This means much of the work completed for one framework can support the other. It is commonly cited that there is approximately a 60% overlap between the requirements.
Areas of overlap include:
- Risk management, identifying, assessing and treating information security risks.
- Access control, ensuring only authorised individuals have access to systems and data.
- Supplier management, assessing and monitoring third-party risks.
- Incident response, establishing clear processes for identifying, reporting and managing security incidents.
- Secure development, ensuring that security is considered at each stage of the development lifecycle.
- Network and infrastructure security, providing sufficient availability and protection of underlying cloud or local environments.
- Staff awareness, providing security training and promoting good information security practices.
- Governance, defining policies, responsibilities and management oversight for information security.
While the evidence required and the assessment process differ, many of the underlying controls are closely aligned. Organisations that have already implemented ISO 27001 often find they have much of the governance, documentation and security framework needed to support SOC 2 certification. Equally, businesses with mature SOC 2 controls are often well placed when implementing an Information Security Management System for ISO 27001.
Working with SaaS clients who have implemented both frameworks, we find SOC 2 places greater focus on the security of the product itself, whereas ISO 27001 requires a wider scope of controls across the organisation’s operations to be considered.
For organisations that expect to need both frameworks, taking a coordinated approach from the outset can reduce duplicated effort, shorten implementation times and create a more consistent approach to information security across the business.
When do you need each framework?
The right framework depends on your customers, your target markets and the requirements of your contracts. In many cases, your clients will determine which framework carries the greatest value. The following guidance provides a useful starting point.
Choose ISO 27001 if…
- You are initially focusing on the UK, EU and EMEA.
- Your customers ask for an internationally recognised information security certification.
- You want to implement a structured Information Security Management System (ISMS).
- You’re responding to supplier due diligence questionnaires across a range of industries.
- You need a recognised certification that demonstrates continual improvement in information security.
- You are selling through UK government and public sector procurement frameworks.
Choose SOC 2 if…
- You sell software, cloud or technology services to US or large multinational organisations with a US presence.
- Prospective customers specifically request a SOC 2 report.
- You’re working with enterprise customers that follow US procurement and security assurance processes.
- Your organisation needs to demonstrate compliance with the AICPA Trust Services Criteria.
- You’re building trust with customers in the North American market.
Consider both if…
- You operate internationally and have customers in both the UK/EMEA and the US.
- You’re expanding into the US.
- Different customers request different security frameworks.
- You want to minimise duplicated effort by aligning both frameworks through a single information security programme.
- Long-term growth means you’ll eventually need to satisfy both international certification and US customer expectations.
Ultimately, there isn’t a one-size-fits-all answer. The best choice depends on where your business is today, where it’s heading, and what your customers expect. If you’re unsure, it’s often worth taking advice before investing in either framework, particularly if there’s a realistic possibility that you’ll need both in the future.
How do the relative costs for SOC 2 and ISO 27001 compare?
Cost is a key question that many organisations want to know when considering the frameworks. The cost of ISO 27001 and SOC 2 do differ. There are three main components to the cost of either framework: the implementation cost, the cost of any security uplifts, and the certification or attestation cost, which covers the external audit itself.
Implementation costs
Implementation costs cover your team’s time, consultancy fees if you use a firm like twoSB, and any software costs, for example a GRC platform. In our experience, implementation costs are broadly comparable between ISO 27001 and SOC 2. They’re driven more by the size and activities of your organisation than by the framework itself.
Security uplift costs
Security uplift costs cover any new tools or controls you introduce to meet the requirements, such as mobile device management (MDM), an enterprise password manager or more advanced code scanning. These don’t need to be significant, as both frameworks are risk-based and aren’t prescriptive about the technology you use. There’s no material difference in security uplift costs between SOC 2 and ISO 27001.
Certification and attestation costs
This is the main driver of any overall cost difference between the two frameworks.
For smaller organisations, broadly up to 50–100 team members, ISO 27001 is typically cheaper over a three-year period. Team size is one factor, as smaller organisations need fewer audit days. The other is that the first and second surveillance audits after certification are shorter, and cheaper, than the initial certification audit.
SOC 2 costs are less dependent on headcount and more on the complexity of your organisation and product, along with the number of Trust Services Criteria you’re assessed against (security is mandatory, with confidentiality, availability, privacy and processing integrity optional). Unlike ISO 27001, the full cost of a SOC 2 report typically repeats each year, with no lighter renewal years.
It’s impossible to give a precise like-for-like figure, since so much depends on factors including which certification body or audit firm you use. As a general guide, though, a smaller organisation could find SOC 2 costs roughly double those of ISO 27001 over three years, with the gap narrowing as organisational size increases. The number of physical locations can also affect the comparison: SOC 2 focuses more on your product than on physical security and as a result attestation bodies often audit remotely; ISO 27001 requires physical sites to be assessed, often in person which can increase the cost if you are a multisite organisation.
How twoSB helps with SOC 2, ISO 27001 or both
Choosing between SOC 2 and ISO 27001 isn’t always straightforward, particularly if your business is expanding into new markets or responding to changing customer requirements. That’s why our advice starts with understanding your organisation, your customers and your commercial objectives, not recommending a particular framework from the outset.
Because twoSB supports organisations with both SOC 2 and ISO 27001, our recommendations aren’t tied to a single framework. For some organisations, that means implementing ISO 27001 first. For others, a SOC 2 report is the immediate priority. Where both frameworks are likely to be needed, we can help you plan a coordinated approach that reduces duplicated effort and makes the most of the overlap between them.
Our support can include:
- Gap analysis to assess your current level of readiness.
- Implementation planning tailored to your organisation.
- Policy and documentation development.
- Practical support throughout implementation.
- Internal audit and audit preparation.
- Ongoing guidance as your information security programme evolves.
- Fractional GRC / compliance manager role.
Whether you’re pursuing one framework or both, our focus is the same: delivering a practical solution that meets customer expectations without creating unnecessary complexity.
Not sure whether your business needs SOC 2, ISO 27001 or both? Book a scoping call and we’ll help you identify the most appropriate route based on your customers, your growth plans and your existing security maturity. If you’ve already made your decision, you can also explore our dedicated SOC 2 and ISO 27001 services to learn more about each approach.
See how we’ve helped organisations strengthen digital trust through our client case studies.
Frequently asked questions
Is SOC 2 the same as ISO 27001?
No. Although both focus on information security, they are different frameworks. ISO 27001 is an internationally recognised certification for an Information Security Management System (ISMS), while SOC 2 is a US attestation report that assesses security controls against the AICPA Trust Services Criteria.
Which is better, SOC 2 or ISO 27001?
Neither is inherently better. The right choice depends on your customers, your target markets and your commercial objectives. ISO 27001 is generally the preferred option for organisations operating in the UK, EU and EMEA, while SOC 2 is often expected by US customers, particularly in the technology and SaaS sectors.
Does ISO 27001 cover SOC 2?
No. ISO 27001 and SOC 2 are not interchangeable, and one does not automatically satisfy the requirements of the other. However, there is significant overlap (around 60%) between the security controls and governance required by both frameworks, which means implementing one can make the other quicker and more straightforward to achieve.
Can an organisation have both?
Yes. Many organisations maintain both ISO 27001 certification and a SOC 2 report. This is particularly common for businesses operating internationally while serving customers in the United States, where different clients may request different forms of assurance.
Which should UK businesses choose?
For many UK organisations, ISO 27001 is the best place to start because it is recognised internationally. However, businesses selling software or technology services to US customers may find that a SOC 2 report is requested during procurement or supplier due diligence. The right choice depends on where your customers are based and what they expect.
Is SOC 2 recognised in the UK?
Yes. Although SOC 2 originated in the United States, many UK organisations obtain a SOC 2 report to meet the requirements of US customers, as well as UK customers who want to place a particular due diligence focus on the controls within a software product.
Which takes longer to achieve?
The timeframe depends on your organisation’s size, existing security controls and level of preparedness. ISO 27001 implementation typically takes 2.5 – 4 months, while a SOC 2 Type II report also requires a reporting period during which controls are assessed in operation. The most appropriate timeline will depend on your business and the type of assurance your customers require.
Which costs more?
There is no universal answer because costs vary according to the size and complexity of your organisation, the scope of the project and the level of external support required. We have found that ISO 27001 can cost less money in the medium term for smaller organisations as the SOC 2 attestation is priced the same each year, whereas ISO 27001 has a more condensed surveillance audits two years out of 3. Organisations planning to achieve both frameworks can often reduce overall costs by taking a coordinated approach that reuses documentation, governance and security controls across both projects.
Not sure whether you need SOC 2 or ISO 27001?
If you’re weighing up SOC 2 vs ISO 27001, the best starting point is understanding what your customers expect and what will best support your business as it grows. We’ll help you assess your requirements, recommend the most appropriate framework and, if needed, plan a route to achieving both.