Why Indian tech companies need SOC 2 compliance

15 January 2024 / Insight posted in Article

In the rapidly evolving digital landscape, data security and privacy have become paramount concerns for businesses worldwide. SOC 2, or Service Organization Control 2, is an American and globally respected framework for managing and securing sensitive data hosted by technology and cloud computing organisations. For Indian technology companies, especially those handling or processing sensitive customer data, adhering to international standards like SOC 2 is becoming increasingly crucial. Here is a comprehensive look at why SOC 2 compliance is essential for Indian tech companies:

Building trust with global clients 

In the global market, SOC 2 compliance plays a crucial role in conducting business, especially with clients in the US, signifying a company’s commitment to maintaining a high level of information security and thereby bolstering its overall credibility. For Indian tech companies competing on a global scale, securing SOC 2 certification becomes a significant differentiator, positioning them as trustworthy and secure partners. 

Data security assurance 

SOC 2 compliance serves as a comprehensive risk mitigation strategy. It requires the implementation of strong security measures. This reduces the risk of data breaches and cyber attacks to safeguard both the company and its clients. The commitment to regular SOC 2 audits ensures continuous monitoring and improvement of security protocols, making the company’s infrastructure more resilient against threats. 

Compliance with regulatory requirements 

Meeting international standards is crucial for Indian tech companies dealing with global clients, where SOC 2 compliance plays an important role. This certification aligns with global standards, ensuring that companies meet the necessary regulatory requirements of different countries. Additionally, as data protection laws worldwide become more stringent, SOC 2 compliance helps companies stay ahead and adapt to these changes proactively. 

Operational excellence 

The process of achieving SOC 2 compliance often leads to streamlining operations and identifying inefficiencies, resulting in more robust and efficient systems. This process helps organisations cultivate a culture of security awareness, as SOC 2 compliance necessitates regular employee training on security practices. 

Market expansion and diversification 

Compliance with internationally recognised standards, such as SOC 2, not only opens doors for Indian tech companies to enter new markets with strict data security requirements but also serves as a strong attraction for a more diverse clientele. The SOC 2 certification positions these companies to appeal to a broader range of clients, particularly from industries where non-negotiable data security, such as finance and healthcare, is paramount. 

Long-term sustainability 

In an era where data breaches can lead to significant financial and reputational damage, SOC 2 compliance helps future-proof the business. Achieving SOC 2 compliance lays the groundwork for meeting other compliance standards, further enhancing the company’s security posture. 


For Indian tech companies, SOC 2 compliance is not just a certification; it is a strategic investment in their future. It signifies a commitment to data security, builds trust with global clients and positions the company for sustainable growth in a competitive global market. As data security continues to be a crucial concern, SOC 2 compliance will likely become an essential criterion for success in the tech industry. 

Our Moore ClearComm team offers a comprehensive data protection advisory service. Feel free to contact our team for further assistance.  

Get in touch

How did you hear about us?