Identity & SSO compliance: Why it matters and how to get it right

In the world of B2B SaaS, security and compliance are not optional; they’re prerequisites for landing enterprise deals. From SOC 2 audits to GDPR enforcement, companies today face increasing pressure to demonstrate airtight practices around data security and identity management.

In this article, we’ll cover:

• Why compliance matters in B2B.
• The key compliance certifications most B2B products need.
• How SSO and user provisioning help meet those standards.
• And how WorkOS helps you stay compliant from day one without building everything in-house.

Why compliance matters in B2B

When you sell to larger companies, compliance comes up fast. Security, legal, and procurement teams will expect you to meet specific standards and show documentation to prove it.

Let’s look at why compliance is such a big deal for B2B companies.

1. Enterprise security reviews

When a company wants to buy your software — especially a big company — their procurement and security teams will perform a vendor risk assessment. They’ll ask:

• What kind of data do you collect?
• How do you protect it?
• Are you compliant with standards like SOC 2 or ISO 27001?

Without clear answers, you risk delays or losing the deal entirely.

2. Risk & security teams want specific technical controls

Enterprise buyers care how you keep data secure, not just that you say it’s secure. They often have checklists requiring things like:

• SSO (so employees don’t have to manage multiple passwords).
• MFA (multi-factor authentication).
• Automated user deprovisioning (to make sure ex-employees lose access immediately).

These are technical controls. If your product supports them, you reduce their risk, which makes them more likely to approve your product.

3. Compliance builds trust

Certifications like SOC 2 or GDPR compliance show that you take security seriously. That’s a signal buyers look for, especially when you’re handling their internal data or users.

The compliance certifications B2B companies need

If you're building B2B software, these are the certifications you’ll likely need to land enterprise deals:

SOC 2 (System and Organization Controls 2)

SOC 2 is a security and trust audit for SaaS companies. It checks how well your company protects customer data, with a focus on five areas:

• Security: Is your data safe from unauthorized access?
• Availability: Is your service reliable and online when expected?
• Processing Integrity: Does your app work the way it’s supposed to?
• Confidentiality: Is sensitive data protected?
• Privacy: Do you respect user privacy and data rights?

Any SaaS company storing or processing customer data, especially those selling to other businesses, needs this certification.

SOC 2 is the most commonly requested compliance framework in US B2B sales. Enterprise buyers expect you to have it before they sign off.

ISO 27001

ISO 27001 is an international standard for managing information security. It focuses on your internal policies, training, systems, and risk management processes.

Think of it like building an internal “security playbook” that you follow and audit regularly.

Companies working with global customers or operating in regulated industries need this certification.

It’s especially popular in Europe and Asia, and it pairs well with SOC 2 for showing a strong security posture.

GDPR (General Data Protection Regulation)

GDPR is a privacy law from the European Union. It gives individuals more control over their personal data, and it forces companies to:

• Collect only the data they actually need.
• Clearly explain how data is used.
• Delete data on request.
• Protect that data from leaks or misuse.

Anyone handling personal data from EU users, even if your company is based elsewhere, needs GDPR compliance.

Non-compliance can lead to millions in fines. It also affects how you handle identity data, consent, and user rights.

HIPAA (Health Insurance Portability and Accountability Act)

HIPAA is a US law that protects medical and health data. It sets rules for how “protected health information” (PHI) is stored, shared, and secured.

If your company works with hospitals, insurance companies, health apps, or patient data, it needs to be HIPAA compliant.

HIPAA violations can result in lawsuits or criminal charges. If you deal with health data, you must meet strict identity and access controls.

Recap: Who needs what?

How SSO and user provisioning help you stay compliant

Compliance is all about control, specifically, controlling who has access to what. That’s why Single Sign-On (SSO) and automated user provisioning aren’t just convenience features; they’re powerful tools that help you meet compliance requirements like SOC 2, ISO 27001, HIPAA, and GDPR.

Let’s break down how they work and why they matter.

What is SSO?

Single Sign-On (SSO) lets users access all their apps with a single login, managed through a centralized identity provider (like Okta, Azure AD, Google Workspace, etc.).

Instead of setting up separate passwords in every system, users authenticate through one secure portal, making things simpler for them and safer for your company.

What is user provisioning?

Provisioning is the process of automatically creating, updating, and removing user accounts in all your connected systems, based on their role or status in your identity provider.

This ensures:

• New hires get access to what they need immediately
• Departing employees lose access instantly
• Access stays in sync as roles change

The protocol that powers this automation is called SCIM (System for Cross-domain Identity Management).

How SSO and SCIM support compliance

Together, SSO and SCIM solve one of the hardest parts of compliance: access control and auditability.

Here’s how they help you pass audits and reduce risk.

1. Centralized access management

With SSO, all user authentication flows through one place, your identity provider. You can:

• Enforce security policies globally (MFA, device trust, IP restrictions).
• Instantly disable access for offboarded users.
• Control which groups or roles can access which apps.

Provisioning ensures those access changes are reflected across all systems, automatically.

2. Reduced human error

Manual account management is error-prone. Someone always forgets to deactivate a user or update permissions.

Provisioning automates this process, so nothing falls through the cracks, which is exactly what compliance auditors want to see.

3. Audit logs and reporting

SSO systems keep detailed logs:

• Who signed in
• When
• From where
• What apps they accessed

This is gold during audits. You can prove that only the right people accessed sensitive systems, and show what happened if something goes wrong.

4. Least privilege and role alignment

Provisioning tools can enforce role-based access control (RBAC) so users only get the permissions they need, and nothing more. That’s a key part of frameworks like:

• SOC 2: Control logical access to systems
• HIPAA: Restrict access to PHI
• GDPR: Minimize data exposure

How to stay compliant without building everything yourself

Building SSO, provisioning, and identity infrastructure from scratch takes serious time, and even more security expertise. But if you're targeting enterprise customers, you need it to pass their compliance checks.

That’s where WorkOS comes in.

WorkOS gives you everything you need to meet the compliance expectations of modern B2B buyers:

• Fully managed SSO
  
  • Supports SAML, OIDC, Google, Okta, Azure AD, and dozens more
  • Pre-built integrations with minimal setup
  • Auth flows that meet the access control needs of SOC 2, ISO 27001, and HIPAA
• Automated user provisioning with SCIM
  
  • Automate account creation and deactivation
  • Stay in sync with HR systems and identity providers
  • Prevent orphaned accounts and ensure least privilege
• Audit Logs
  
  • Capture detailed records of user activity across your app
  • Monitor authentication, access, and system events
  • Essential for breach forensics and compliance reporting
• RBAC (Role-Based Access Control)
  
  • Define fine-grained roles and permissions within your app
  • Enforce least privilege at scale
  • Central to HIPAA, ISO 27001, and GDPR requirements
• Secure by default
  
  • Encryption at rest and in transit
  • Detailed audit logging and activity tracking
  • Built to support compliance with SOC 2, ISO 27001, HIPAA, and GDPR
• Developer-friendly
  
  • Clean, well-documented APIs
  • Easy-to-use SDKs
  • Drop-in admin portal to manage SSO connections

Whether you're a startup just entering the enterprise market or a growing SaaS company looking to scale securely, WorkOS lets you deliver enterprise-ready identity features — fast.

You stay focused on your product. We handle the compliance infrastructure.

Get started with WorkOS.