What is IT compliance

IT compliance refers to how organizations ensure their IT systems and practices adhere to specific laws, regulations, and industry standards.

This term generally describes data security, privacy, access controls, identity management, and risk assessment requirements that a company must adhere to when processing customers’ data.

IT compliance requirements usually vary based on your location, industry, and the data types you process. For example, the Payment Card Industry Data Security Standard (PCI DSS) is a compliance requirement for financial institutions or companies processing credit card transactions.

Why is IT compliance important?

IT compliance helps your organization’s exposure to fines, penalties, and data breaches. It also ensures your organization safely processes customers' sensitive data while safeguarding it from unauthorized access.

Maintaining IT compliance also helps your company demonstrate accountability and transparency to your stakeholders. When you adhere to IT laws and regulations, customers are more likely to trust you with their data and business.

Maintaining IT compliance also allows organizations operating across multiple jurisdictions to adhere to various regulatory standards.

Common IT compliance standards

Here are some of the IT compliance standards you should know:

General Data Protection Regulations (GDPR)

GDPR is a data privacy law that regulates data collection and regulation in the EU. This personal data protection law dictates how companies collect, process, and protect the data of individuals within the EU and foreign entities engaging with EU residents.

Any business collecting data from EU citizens must comply with GDPR. The regulation applies whether your business is physically present in the EU or operates outside the region. Failure to comply can cost a company up to €20 million or 4% of their worldwide annual revenue (whichever is higher).

Health Insurance Portability & Accountability Act (HIPAA)

HIPAA is a US federal law designed to protect sensitive patient health. This regulatory act sets standards for how healthcare providers handle, transmit, and store patients' health information. It also applies to insurance companies and legal firms handling medical records.

HIPAA prohibits sharing without a patient's consent, except during medical care or when facilitating service payment. Organizations must also install a notification system when there’s a security breach or threat. Noncompliance may cost an organization up to $50,000 per violation.

Payment Card Industry Data Customer’s Credit (PCI DSS)

PCI DSS is an information security standard that mitigates the vulnerability of cardholder data and prevents credit card fraud. It dictates how an organization processes, transmits, and stores cardholder information.

This standard mandates installing firewall configurations and encrypting cardholder data across open, public networks to protect the cardholder's personal information.

Failure to comply with this regulatory standard may attract legal repercussions and fines ranging from $5000 to $50,000. Non-compliance may also result in customers or partners terminating business relationships with you.

Service Organization Control 2 (SOC 2)

SOC 2 is an auditing framework that evaluates an organization’s information security practices. Although the standard is not legally mandatory, many businesses consider it when choosing a service provider.

Whether you are a software as a service (SaaS) vendor or cloud provider, having an SOC 2 certification gives you a competitive edge over other vendors.

To be SOC 2 certified, you must undergo an independent audit and show proof of compliance with appropriate processes to protect your IT system and customers' sensitive data.

International Organization for Standardization 27001 (ISO 27001)

ISO 27001 provides a framework for organizations to manage and protect sensitive information systematically.

This standard was designed to help companies of all sizes protect their information assets, whether they’re sorted locally or on the cloud. It also enables organizations to identify the security risks associated with their IT access and implement measures to mitigate them.

What challenges do businesses face with IT compliance?

Below are some common challenges you may face with IT compliance face, especially as a global company:

Navigating regulatory complexities

Each jurisdiction has its IT compliance requirements, which can be daunting for global companies operating in different countries. Additionally, keeping up with other domestic and international bodies' varying data privacy and industry-specific regulations can be challenging.

It’s common for global companies to struggle to adhere to these various cross-border data privacy regulations, especially if they lack centralized compliance management software to keep track.

Managing technology & resource limitations

As a global company, keeping up with the different requirements of various regulatory bodies can be challenging if you use legacy systems incapable of handling such complexity.

Using tools that don’t address your company’s compliance needs can strain your ability to manage compliance efficiently across different regions and business units. If your technology systems lack real-time monitoring, for instance, doesn’t support real-time monitoring, keeping track of various departments in a global team can be very challenging.

If you have a global remote team, the differences in time zones and working hours can be a real challenge for employees in need and IT professionals trying to offer virtual support. Deel IT provides flexible, round-the-clock help support to workers around the world, regardless of their time zones.

Lack of visibility

Visibility plays a vital role in IT compliance. It helps you accurately inventory your IT assets, including the hardware and applications present within your organization. This is essential for compliance, which mandates you have a detailed record of your IT portfolio.

Not having complete visibility into your IT systems also makes reporting and auditing very difficult, which regulatory bodies require as evidence of compliance.

How can businesses achieve IT compliance?

Compliance with IT regulations helps you spot and manage potential security risks before becoming a threat to your organization. Here are some ways businesses can achieve IT compliance:

Conducting regular audits

Periodic audits can help you identify gaps in your compliance, such as bottlenecks, inefficient processes, and outdated technology. They can also help you reevaluate your IT tools, practices, and policies to ensure your company isn’t violating compliance regulations. Additionally, they provide documentation of your IT practices, which serves as evidence of compliance during external IT assessments.

Developing an efficient IT policy

Developing IT policies allows you to create guidelines clearly outlining what employees are expected to do, reducing non-compliance risks.

Your IT policy should dictate how the technology process should be managed. This is crucial for strengthening your information security system against threats and attacks. Your IT policy should also include the rights and responsibilities of your managerial team and employees.

More importantly, you need to ensure your policies align with the IT compliance standards of the regulatory bodies in your industry or jurisdiction.

Leveraging technology

Whether you’re a founder, HR expert, or financial manager overseeing a global team, navigating the disparities in IT compliance can be overwhelming for you and your IT department.

Using software like Deel streamlines your compliance processes, helping you avoid non-compliance risks. It automates IT tasks such as onboarding, offboarding, and everything in between, which can overwhelm your IT department. For instance, when you have new hires, Deel IT pre-configures the equipment in accordance with IT standards, setting them up for success from day one.

How to evaluate IT compliance in your organization

Assessing the effectiveness of your compliance is a crucial step for any organization that wants to avoid reputational, legal, and financial risks.

Here are some metrics that can help determine how compliant you are with the IT compliance standards and internal policies:

• Average time to address compliance issues: A key metric to monitor is the time it takes to resolve reported compliance cases.
• Data breach incidents: Evaluating data breach incidents in your organization helps you spot vulnerabilities in your security system and determine how best to mitigate them.
• Regulatory change response time: Compliance is bound to change, and adaptability to new IT compliance requirements can help you stay in touch with evolving IT standards.
• Third-party vendor assessments: Adhering to IT compliance is one thing; using vendors that comply with these standards is another. This is why you should assess your vendors’ compliance through certifications, performance reviews, or interviews with top stakeholders.
• Employee training on compliance: It is important to measure the percentage of employees who completed required compliance training. This metric indicates your employees are well-informed about the importance of IT complaints and non-compliance risks.

How Deel IT streamlines compliance for remote and hybrid teams

Deel IT makes IT compliance simple and efficient. Its certified data erasure feature securely overwrites data multiple times, ensuring sensitive information is fully removed and complies with privacy laws like GDPR—perfect for offboarding employees safely.

It also provides a centralized dashboard to automate tracking, reporting, and real-time visibility of global assets, helping companies navigate regional regulations seamlessly. For new hires, Deel IT handles mandatory benefits like health insurance and pensions, ensuring compliance with local laws.

Key benefits of Deel IT include:

• Certified data erasure for secure offboarding and compliance with GDPR.
• Centralized asset tracking, reporting, and real-time visibility.
• Management of mandatory employee benefits like health insurance and pensions.
• Streamlined device lifecycle management, from procurement to disposal.
• Unified compliance policies and comprehensive reporting.

Book a demo today to see how simply and easily you could equip your teams for compliant remote working.