ISO 27001 vs ISO 27701: What Indian IT Firms Should Know

As we step into today’s highly networked business world, database that carries information tops the most valuable asset any organisation possesses, which makes it one of the most vulnerable assets as well. Data breaches, cyberattacks, and privacy violations aren’t some random events you hear about in the news; they are common threats that can damage a company’s reputation, lead to heavy fines, and cause customers to lose trust.

In the Indian market, these risks play a major role and shapes your image to the outside worlds. The moment you allow yourself to become a pawn in a threat actor’s game, you forfeit the trust your clients have placed in you. It is a core business imperative in today’s world to protect sensitive corporate data and personal information that complies with the law. This is because as time evolved, different countries started working together and started sharing information internationally.

Just last year (2023), a Bangalore based IT Firm faced a major phishing attack. This led to their client’s proprietary code to be leaked. Because of which they had a ₹50 lakh penalty and lost US customer. This data breach dealt a double blow: financial losses and damaged trust. Which gives you an idea on how these risks are real and recurring for Indian IT firms.

For this to stay intact within organisations, the ISO 27001 certification establishes a solid and structures method of information protection through Information Security Management System (ISMS). Using ISO 27001 as a foundation, ISO 27701 adds a privacy-oriented aspect by defining a Privacy Information Management System (PIMS). These two certifications work hand in hand to provide an integrated system for the management of general Information security and personal information protection.

What is iso 27001 certification?

ISO 27001 is the global standard for establishing, implementing, maintaining, and continually improving an Information Security Management System (ISMS). In short, ISO 27001 is the international standard for managing information security.

Think of it as a detailed playbook that tells companies exactly how to protect sensitive information of yourself and clients from identifying risks and making sure everything is secure so that there is no data breach.

With ISO 27001 certification they are trained and obligated to,

So with these qualities that has been attested, it is officially easier for organisations to stay on top of the competition. As, any client who looks for a service would mainly focus on their safety especially in a cloud domain.

How to get iso 27001 certification?

Getting ISO 27001 certified is a step-by-step process that ensures your organisation meets international information security standards:

What is iso 27701? - Benefits

If ISO 27001 is the main ledger to secure your information, ISO 27701 is like another ledger on the same shelf.

It’s an extension of ISO 27001 that helps organizations stay in the market with respect to Privacy Information Management System (PIMS).

Why? Because in today’s world, keeping data safe is not the only objective; you also must handle it responsibly.

Now, you must wonder what makes these certifications that useful. Here in Firstwave we provide these certificates keeping into account all the benefits that can be taken into action to help a firm grow in the market.

The Privacy Connection: ISO 27701 aligns with the global privacy laws

• • GDPR (Europe’s General Data Protection Regulation)
• • India’s Digital Personal Data Protection (DPDP) Act

It gives you a structured way to manage personal data which shows trust within an organisation.

For Indian IT firms, ISO 27701 certification shows clients and regulators that privacy risks are addressed actively, which is important mainly for organisations handling customer data in bulk or working with international partners.

Key benefits include

• • Integrates privacy protection into existing ISMS framework
• • Demonstrates compliance with privacy regulations (GDPR, DPDP)
• • Reduces risks of data privacy breaches and penalties
• • Enhances trust with clients, partners, and stakeholders
• • Streamlines privacy governance and operational controls
• • Supports global market access where privacy compliance is mandatory

ISO 27001 and ISO 27701: Key Difference

ISO 27001 and ISO 27701 – are they separate standards or part of the same framework?

So to make it short, imagine ISO 27001 as the master framework. It’s all about building an Information Security Management System (ISMS), a structured way to protect all the required information including financial data, trade secrets, customer contracts, cloud backups.

Its focus is broad: confidentiality, integrity, and availability of information, no matter what form it is in.

Now, let us talk about ISO 27701, which isn’t a standalone standard, but an extension of ISO 27001.

It zooms in on one critical piece of the puzzle: personal data (PII). This is data that identifies people — like names, phone numbers, medical records, or payment info.

ISO 27701 adds specific privacy controls so that your ISMS isn’t just secure… it’s also compliant with privacy laws, including GDPR in Europe, India’s DPDP Act, and other global regulations.

Why ISO 27001 is Crucial for Indian IT Companies

If you’re an Indian IT company, you already know the global stage is crowded, and clients are cautious.

They’re not just asking, “Can you deliver?” but also, “Can you protect our data while you do it?”

That’s where ISO 27001 certification steps in. It’s not just a nice-to-have; in many cases, it’s your ticket to the game of staying in the market.

If your organisation is into international market, many international contracts (especially in Europe and the US) won’t even let you in their door without ISO 27001.

Think of it as your security passport, without it those big-ticket projects may simply not think of you as a client worth investing in.

And about keeping Indian and Global regulations in check. From India’s Digital Personal Data Protection (DPDP) Act to global frameworks like GDPR, compliance is non-negotiable in this certification.

ISO 27001 helps Indian IT firms show they’re not just compliant but structured and proactive about data protection.

Certification isn’t just paperwork but it includes training, awareness programs, and internal audits that get everyone from interns to leadership to walk on the same ground of thoughts about security where it turns data security from an IT problem into a company-wide habit.

In this competitive world, ISO 27001 acts as a seal of trust and signals to the world that,

“We don’t just deliver code and services. We safeguard your data like it’s our own.”

Why ISO 27701 is Becoming a Priority in India

Have you noticed how every app, website, and service you use now pops up with privacy notices and consent checkboxes? That’s not just a trend it’s the new reality in India.

With the Digital Personal Data Protection (DPDP) Act now in force, businesses are legally accountable for how they collect, process, and store personal data. Without any excuses/shortcuts.

So where does ISO 27701 come into the picture?

Think of it as your organization’s privacy GPS. It provides a structured roadmap for building a Privacy Information Management System (PIMS) that not only keeps regulators happy but also wins client trust.

Let’s break down why ISO 27701 is quickly climbing the priority list for Indian businesses:

• • It reassures international clients, especially in Europe and the US, that privacy compliance is in place.
• • It helps comply with India’s DPDP Act and reduces the risk of regulatory penalties.
• • It builds customer trust by showing transparency and responsibility in data handling.
• • It gives IT service providers and BPOs a competitive edge by demonstrating strong privacy practices. 
• • It aligns privacy practices with global laws like GDPR, making international operations smoother. 

At Firstwave Certification, we guide businesses through the entire ISO journey, from the initial gap analysis all the way to successful accreditation. Our goal is

simple:

“To make sure your organization is not just compliant, but also competitive in today’s global marketplace.”