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Published on: December 18, 2025
Since SaaS companies operate in even larger amounts of personal data across the areas, they are now obligated to fulfill privacy expectations as a business necessity. The purpose of ISO 27701 and GDPR is alike, as they are two significant frameworks that assist organizations in enhancing data protection programs, although they are not used in the same way. Those differences allow SaaS platforms to select the correct strategy of developing long-term trust, security, and compliance.
The present blog discusses the difference between the ISO 27701 Certification for SaaS Companies and GDPR Compliance, their differences, and which one is more important to your organization.
The ISO 27701 is a global privacy supplement of the ISO 27001 standard. It gives recommendations on how to implement a Privacy Information Management System (PIMS) in order to safeguard Personally Identifiable Information (PII). The objectives of an ISO 27701 certification for SaaS companies include:
The General Data Protection Regulation (GDPR) is the law that guarantees the rights of persons in the European Union (EU). The SaaS firms that process the data of EU residents are obliged to comply with the provisions of GDPR.
GDPR is not a certification, but a law. Organizations are not certified according to GDPR in the same way as ISO; they can only certifiably show GDPR compliance.
The main duties are:
To make SaaS companies aware of the difference between the two, the simplified comparison is given below:
| Aspect | ISO 27701 Certification for SaaS Companies | GDPR Compliance |
| Type | Voluntary international standard | Mandatory EU legal requirement |
| Purpose | Builds a structured Privacy Information Management System (PIMS) | Protects personal data rights of EU residents |
| Scope | Internal processes, documentation, and PIMS design | Legal obligations, user rights, data processing rules |
| Certification | Yes, organizations can be certified | No formal certification—only compliance |
| Applicability | Global | EU and companies handling EU residents’ data |
| Approach | Risk-based and process-driven | Law-driven and rights-based |
| Audit Requirement | Third-party audit for certification | No certification audit, but legal investigations are possible |
| Focus | Privacy controls, governance, PII processes | Data protection, consent, individual rights |
As much as ISO 27701 cannot supplant GDPR, it offers a logical roadmap that facilitates the process of getting ready for GDPR. In the case of SaaS operations, it develops a step-by-step road map of the privacy governance.
ISO 27701 encourages companies to:
SaaS firms tend to serve as processors of customer information. ISO 27701 clearly outlines:
To ensure SaaS companies have:
Documented data flows
Robust risk assessments
Secure storage controls
Formal privacy procedures
These business controls are the pillars of GDPR compliance.
Although a SaaS company may not be bound by ISO certification, compliance with GDPR is obligatory in case they process EU data.
In ISO 27701, the third-party audit is done to confirm the controls. On the contrary, the GDPR is supervised by data protection authorities that can impose hefty fines.
A SaaS company can use ISO 27701 to:
GDPR instructs the company on what to do, and ISO 27701 explains how.
In the case of companies that have EU clients:
There can be no compromise on GDPR compliance.
In case your SaaS application deals with international data:
The ISO 27701 assists in developing a globally accepted privacy framework that is scalable.
In case you wish to establish customer trust:
An independent validation of your privacy approaches in the data operation is an added advantage to ISO 27701 certification, since it gives you a competitive advantage.
In case you desire maturity in long-term privacy:
These two frameworks are complementary to one another. When SaaS companies apply the ISO 27701, they often notice that it will become much easier and will not take so much time to comply with GDPR.
The ISO 27701 certification for SaaS companies and GDPR have different yet related purposes. GDPR is a legal requirement, and ISO 27701 is a scheme that facilitates a well-organized way to put the requirements into practice. The combination of both strategies is beneficial for SaaS businesses seeking to maintain high global privacy governance standards. Through the integration of the systematic controls of ISO 27701 and the legal requirements of GDPR, an organization will establish a mature and reliable privacy ecosystem. QIC Global can be a valuable partner in ensuring that businesses achieve uniform and systematic compliance with privacy regulations with their hassle-free audit services.
No. ISO 27701 facilitates compliance activities, whereas GDPR is not only a legal mandate but also cannot be fully achieved through certification.
It is optional, yet very useful in bolstering privacy settings, customer confidence and making it easier to comply with regulations.
No. No certification of GDPR. The companies are only able to prove that they adhere to the requirements of GDPR.
No. It applies to any company that deals with PII, such as SaaS providers, data processors, and legacy IT providers.
This needs to be implemented in a structured way through documentation, privacy management, and risk evaluation; however, in situations where SaaS firms already have a well-established security culture, the migration is typically less challenging.