With revenue confidence at an all-time high, the Tech & Telco industries need to balance efficiency with due diligence

Why is confidence so high, even with unprecedented challenges? And what should leaders be doing to ensure their predictions become reality?

Featuring Guillaume Devaux, Partner & Co-Head of Technology, media & telecommunications, Forvis Mazars Group

A thriving Tech industry is our key to the future

Forvis Mazars Partner Guillaume Devaux believes tech leaders’ confidence is well warranted. technology and connectivity are more important now than ever and will be increasingly vital in the coming years. Every company in every industry relies on technology in some way, creating more opportunity than ever.

The door is wide open for new players and scale-ups, too. Incidents like the CrowdStrike/Microsoft outage of July 2024, possibly the ‘worst cyber event in history’ in which an estimated 8.5 million computers were impacted by a single corrupted software update, serve as a warning against monopolistic industry domination and encourage buyers to consider other options.
In order to seize these opportunities in a sustainable way and create an even stronger global framework, there are three areas where companies must be especially diligent:

1. Balance early adoption with thorough integration

No industry is better at adopting new technology than the Tech industry itself. Early adoption of emerging technology (such as AI and IOT) can create huge competitive advantages and help secure a market leader position.

But these technologies arguably create as much risk as they do opportunity. Every new solution introduces potential cybersecurity vulnerabilities and operational complications. No matter how much opportunity they promise, these solutions can do more harm than good if implemented without the necessary due diligence and groundwork.

When clear guidelines and regulations exist, this due diligence and groundwork is more straightforward. However, for emerging technologies like AI, regulation is inevitable but not yet established. Here, leaders should take proactive steps to ensure what they implement now is future-proofed against eventual limitations and guardrails.

“You cannot act as if there won’t be any regulation, because there will be eventually. When GDPR came into effect, companies who weren’t taking data privacy seriously were negatively impacted. If you’re the leading company in your sector, or you want to become one, you should be involved with lobbying and working with lawmakers so you can influence how regulations take shape for the benefit of the ecosystem (#techforgood).” 

Guillaume Devaux, Partner & Co-Head of Technology, Media & Telecommunications, Forvis Mazars Group

According to Devaux, leaders should:

●     Define clear ethical guidelines for implementation within the company

●     Engage with discussions and efforts around regulation to help shape them in a way that benefits company goals

●     Proactively ensure their vendors are doing the same, and that interests are aligned

In essence, leaders should seek to participate in efforts to define key pieces of regulation and guidance. This will ensure long-term stability and growth for the companies involved and serve as a competitive advantage when those measures come to fruition.

2. Embrace compliance as a competitive advantage

According to our 2024 C-suite barometer report, global expansion is a top priority within the Tech industry, but it is no secret that this presents numerous challenges around compliance and regulation. And with complex markets like China and the EU identified as top targets for global growth, expanding companies must have a thorough understanding of how to achieve and maintain compliance.

New players in a market should not expect to become overnight experts. The expertise required for each new market is extensive, covering finance, supply chain, sustainability, and more. This is where a global advisor like Forvis Mazars becomes invaluable.

Devaux indicates that one of the biggest mistakes Tech companies make when expanding globally is to treat compliance like a roadblock instead of the competitive advantage it is. The biggest fish in each new pond will have robust compliance and future-proofing requirements for their suppliers, so companies who truly embrace compliance and build their expansion strategy around it will have an advantage when pursuing these customers. By adhering to regulations meticulously, companies can not only avoid legal pitfalls but also build trust and credibility in new territories.

3. Retain top talent with a strong global culture

Leaders across multiple industries cite challenges finding and retaining top talent, and according to our data, the Tech & Telco industries are tracking with the market average. Employee churn is incredibly expensive to companies, meaning that the revenue confidence reported by leaders could be hugely impacted – for better or for worse – by the stability of the company workforce.

Global reports of a talent shortage, especially in the Tech industry, underscore the fact that retention is more critical than ever. And for companies looking to expand in the coming year, maintaining a strong culture amidst that expansion is crucial.

According to our annual C-suite barometer, leaders within the industry are prioritising opportunities for learning and development, access to cutting-edge technology for their workforces, and overall employee wellbeing.

But before leaders can scratch the surface of these initiatives, they must ensure they have the basics covered. Taxes and employment law, for example, differ from country to country, requiring localised expertise; matters with which a trusted advisor like Forvis Mazars can help.

By focussing on these three strategic areas, Tech & Telco leaders can navigate the future with confidence, turning challenges into opportunities for ambitious and sustainable growth.