Pieris Markou: Accounting firms will continue to play a pivotal role in a digital future

Pieris Markou, CEO of Deloitte Cyprus, discusses how the accounting firms are adapting to the needs of an increasingly digital world, which is transforming processes, service lines and the workforce.

Given the rapidly evolving global business landscape, what role do you expect accounting firms to play in the future and how do you envision their function and influence?

Accounting firms will continue to play a pivotal role in the future, not just as financial advisors but also in leveraging their expertise to navigate complex financial regulations and corporate governance, driving sustainable growth and providing strategic advisory services. Our role has expanded to encompass a wide range of services, including data analytics, AI, cybersecurity, ESG/sustainability reporting, corporate strategy, risk management, compliance and an extensive range of advisory services to meet clients’ needs. At the same time, at Deloitte, we are committed to enhancing our industry expertise in these specific fields by delivering comprehensive advisory services through our multidisciplinary approach. We value our relationships with our clients, serving as trusted advisors, and we intend to maintain this relationship while upholding our ethical standards, transparency, quality, efficiency and adaptability to the dynamic needs of the market.

What are the most significant challenges you currently face as CEO of a prominent professional services firm?

Attracting talent and navigating the increased and continuously changing regulatory environment are the two key challenges that our profession is currently facing. Attracting and retaining top talent is one of the most pressing challenges facing our sector. Our efforts concentrate on showing the younger generations that we are not just “boring accountants” but rather the trusted advisors of our clients, offering them solutions across the whole spectrum of their business. We also focus on upskilling our people, ensuring that they have the necessary skills, while fostering a culture of innovation and collaboration. In terms of the continuously evolving environment, we are well-equipped to face such challenges, having invested – and we continue to invest – in technology, integrating AI, automation and data analytics in our operations. Balancing external and internal challenges, while maintaining operational efficiency and meeting clients’ expectations for integrated and strategic advisory, requires a holistic approach and our structure ensures this.

With revenue streams from professional services evolving significantly, how do you see the future of traditional services like audit/assurance, tax, and advisory/consultancy? Which service lines do you anticipate seeing the most growth over the next five years and are there emerging areas or new opportunities that you are exploring?

Our traditional services are changing, driven by technological advancements and shifting client needs. We see a growing demand for new, value-added advisory services such as M&A, ESG and technology. By tailoring our services to address distinctive challenges from different industries, we deliver greater client value and unlock new revenue streams for us. AI, cybersecurity and data analytics are the areas in which I expect to see the most growth in the next five years, fuelled by increasing demand for guidance on digital technological transformations. Emerging areas such as ESG and sustainability reporting, digital risk management and RegTech will also offer new growth opportunities.

At Deloitte, we aim to offer comprehensive and forward-thinking solutions to clients. We have strategically expanded our sector-specific solutions in high-demand areas such as healthcare, education, banking and financial services, staying ahead of trends and fostering continuous innovation. To further enhance our industry expertise, we are expanding our recruitment to bring in skilled professionals with expertise and deeper sector understanding. Another area in which we see growing demand is cross-border services, leveraging our unique blend of local knowledge and global expertise to support clients operating in Cyprus, as well as clients from Cyprus expanding into other geographical markets.

What major trends, both global and local, do you see reshaping the professional services industry and how is the accountancy profession adapting to these changes?

Digital transformation is reshaping the global landscape and this undoubtedly affects our profession as well. We are increasingly investing in AI, machine learning, data analytics and other technological advances to automate tasks and allow time for improved and added-value service delivery. With the growing emphasis on sustainability and ESG, we have already integrated these reporting requirement services into our assurance services. Economic conditions and local market dynamics compel us to adapt our offerings further to meet industry and sector-specific expertise. Overall, our profession is adapting and evolving by leveraging technology, focusing on client customisation, ensuring regulatory compliance, prioritising sustainability and focusing on talent management.

How do you envision the future of Cyprus as an international business hub and what steps are essential to enhance the country’s global appeal and competitiveness?

I firmly believe that Cyprus will continue on its growth path, further enhancing its position as a prominent business hub. To improve its appeal and competitiveness, the Government needs to invest in its own digital transformation as well as in digital infrastructure and innovation, streamlining processes and enhancing technological capabilities for businesses. Strengthening regulatory compliance and transparency is crucial in cultivating trust, boosting investor confidence and attracting foreign investment. Additionally, developing a skilled and diverse workforce through targeted education and training programmes will address the evolving needs of international businesses. Promoting sustainable practices and aligning with ESG standards will further enhance Cyprus’ reputation as a stable and business-friendly destination. All these will help build the Cyprus brand and improve our image.

As the industry evolves, what new skills or competencies do you consider critical for your workforce to maintain a competitive edge in the professional services sector?

Our workforce must cultivate a blend of technical and people skills in our dynamic business environment. Proficiency in digital technologies, data analytics, cybersecurity, artificial intelligence and digital risk management, as well as strong analytical and problem-solving skills – to name a few – are crucial for improved service delivery and driving innovation. Equally important are skills such as adaptability, emotional intelligence and effective communication, essential for seamless collaboration with clients and colleagues across diverse and dynamic environments. Continuous learning and professional development are crucial in keeping our workforce adaptable and responsive. Here at Deloitte, we leverage the knowledge and experience of our global network and the experiences of our people from regional engagements, which enhance our service delivery and maintain our competitive advantage.

(Original photo by TASPHO)

This interview first appeared in the November edition of GOLD magazine. Click here to view it.