Organizations increasingly outsource non-core business processes to service organizations. A Service Organization Control (SOC) report in compliance with ISAE 3402 provides assurance over outsourcing.
Organizations have been dealing with how they can exploit their competitive advantage since the industrial Revolution to increase markets and their profits in these markets. The most important model in the 19th and 20th century was the large integrated organization.
The general and most common term for reporting on third-party risks by service organizations to user organizations is Systems and Organization Control Report or SOC-report. This term is originated by the American Institute of Certified Public Accountants (AICPA) as a replacement for the SAS70 framework.
ISAE 3402 | SOC1
From full outsourcing of complex functions like IaaS, PaaS services, or component manufacturing to small contracts with local service providers and suppliers, organizations in different industries with different magnitude rely heavily on third-party service organizations.