Pieris Markou: M&As in Cyprus’ professional services sector cannot be ruled out

Deloitte Cyprus CEO Pieris Markou has shared his belief that the prospects for the Cyprus’ professional services sector for 2025 are excellent.

Markou noted that, with the appropriate operational framework, it has the potential to strengthen its turnover, noting that despite the difficulties and problems it has faced over the last three years, the sector has proven its flexibility and resilience.

In an interview with InBusinessNews in the context of the IN Business Forecasting 2025, Markou also refers to the challenges and the trends in the sector, which - as he notes - concern the increasing use of technology, the contribution of artificial intelligence and data analysis, as well as the focus on sustainable development.

At the same time, indicating that acquisitions and mergers, although not a new phenomenon, have intensified in recent years, the CEO of Deloitte Cyprus estimates that this trend will continue and does not rule out the possibility of similar developments in the country’s professional services sector.

Referring to Deloitte, Markou identifies investment in innovation and technology as a determining factor for its success.

"At Deloitte, having proven our ability to adapt effectively to the constant changes in the business landscape, our strategy has placed technology, sustainable development, and our people at its core, all with the aim of improving the experience of our clients and people," he emphasises.

Pieris Markou also characterises foreign investments as vital for the country, emphasising that they contribute to the creation of new jobs, while transferring know-how and technology that enhances the innovation and competitiveness of the Cypriot economy.

How do you think the Cypriot economy will perform in the new year? How optimistic are you about its prospects?

Our economy is resilient, as has been demonstrated especially in the last decade. I remain optimistic that in 2025 the main economic indicators will also move in a positive direction, continuing the course of 2024.

Despite the dependence of the Cypriot economy on external factors, the positive course of 2024 in sectors such as tourism, shipping, energy, research and innovation, private healthcare, education and the real estate market gives us positive data for the course of 2025.

With an estimated growth rate of around 3% of GDP and inflation just above 2%, public finances remain strong, and with a budget surplus for 2025, the outlook for the future is favourable.

The government and the EU share the same positive outlook, however, we should not become complacent, neither as a state nor in the private sector.

We are pleased to observe the government's efforts to address the long-standing structural problems affecting the economy, which have entered a trajectory of structural reforms and modernisation, and we hope that we will see substantial developments in the coming year, which will help us face any challenges and take advantage of new opportunities.

Who do you see as the biggest risks to our country's economy? What should be considered in order to ensure its growth trajectory?

The most serious risks to our economy are external, with ongoing geopolitical conflicts in our region creating global economic instability today and uncertainty for the future.

Internal factors, such as bureaucracy, progress towards the digital transformation of the public sector, the need for reforms in public administration, high energy costs, and other issues, amplify the risks.

To effectively address these challenges, and to be able to exploit new opportunities for sustainable development, it is essential to maintain our flexibility and adaptability and remain focused on innovative solutions, on the digitalisation of the public sector, on strengthening the green economy, on upgrading educational excellence and on investing in infrastructure and technologies that support investment, innovation and growth.

The implementation of structural and other reforms in the areas of taxation and justice will improve not only our country's development path, but also its image abroad by attracting investment.

Finally, it is undoubtedly essential that we remain committed to the implementation of our country's development action plan, giving additional impetus to the private sector and opening new prospects for the future.

Foreign investments are vital for our country

What should Cyprus do to become an even more attractive destination for foreign investments? And how important, in your opinion, are they for its economy?

Foreign investments are vital for our country, as they contribute to the creation of new jobs, while transferring know-how and technology that enhances the innovation and competitiveness of the Cypriot economy.

They also reduce our dependence on traditional sectors and enhance growth, thus playing an essential role in the economic growth and stability of Cyprus.

The measures I just mentioned, combined with our clear strategy and vision, have the potential to transform our country into a more attractive investment destination.

Reforms, restructuring of the regulatory framework, tax reform, investments in infrastructure, education and training, as well as the promotion of research and innovation through business innovation centers, are necessary and must be implemented immediately and methodically in order to achieve the desired results.

Without them, we will find it difficult to strengthen the valuable efforts we are all making to attract new foreign investment.

A flexible and resilient professional services sector

Regarding your company's sector of activity, how do you estimate it will develop in 2025? Are there any particular issues that concern you?

Despite the difficulties and problems it has faced over the last three years, the professional services sector has proven its flexibility and resilience, and has the best prospects for 2025 and, with the appropriate operational framework, has the potential to strengthen its turnover.

However, as is the case in every sector, the professional services sector faces new challenges that require immediate response, such as the ever-increasing regulatory framework, the completion and implementation of tax reform, the framework for foreign investment, the enhancement of professionalism, the wider use of modern technology and the exploitation of new opportunities.

Another big issue in our sector is attracting and retaining talent. All companies in our sector are making serious efforts to highlight the role and importance of our profession, in order to change the image of our profession which many see as a boring job dealing only with numbers, while in reality our sector covers a wide range of services to all types of businesses.

We focus on developing our human resources, and while maintaining quality, ethics and integrity, we continuously evaluate and adopt new technologies and sustainable solutions, remaining competitive in the changing business environment.

In this context, Deloitte is ready and has all the resources to continue to grow and provide high-quality services, closely monitoring developments and adapting to new challenges and opportunities.

What are the biggest trends/changes you expect to occur in your sector and what are the most significant challenges?

Key trends in the sector include the increasing use of technology, the contribution of artificial intelligence and data analytics, and the focus on sustainable development.

In addition, we see a focus on the needs of each sector of the economy separately and the need for differentiated services per sector and sector of the economy.

The latter in particular is a challenge, but it is something that at Deloitte we are fully prepared for and our teams are already structured in a way that responds to the particular challenges and opportunities that each sector faces.

With our specialised knowledge and experience, we ensure that the solutions we offer are targeted and efficient, helping our clients achieve their goals and grow their business.

Investing in innovation and technology is a key factor in our success, and this is a great challenge and opportunity for us.

At Deloitte, we adapt quickly and effectively to the constant changes in the business landscape, and for years we have been advancing our digital transformation, and investing in technologies that aim for our sustainable growth.

As technology continues to change the way businesses operate, so too do we at Deloitte. Beyond our internal transformation, we have an experienced team that delivers the same services to our clients, with solutions spanning AI, cybersecurity, data analytics, automation and more.

Finally, we cannot overlook the importance of sustainable development. It is imperative for all companies to integrate green technology into their daily operations and reduce their environmental footprint, achieving a healthy and successful path into the future.

Our commitment to continuous improvement and minimising our negative environmental impact is non-negotiable, and we are planning investments towards this goal.

This is also another major sector in which we have invested in developing expertise, with a dedicated ESG team providing services and expertise supporting clients with regulatory changes, such as the CSRD, and in their compliance with the new standards.

The trend of acquisitions and mergers

A strong trend that seems to be taking hold in Cypriot business is that of acquisitions and mergers. Will we see it as a strong factor in your sector as well?

Acquisitions and mergers, although not a new phenomenon, have intensified in recent years, which is not necessarily a negative, and it seems that this trend will continue.

M&A provides an excellent opportunity for businesses that wish to strengthen their market position and grow rapidly as it allows companies to expand their operations and enter new markets or acquire innovative technologies.

In our sector in Cyprus, but also internationally, acquisitions and mergers have taken place and are still taking place.

Let's not forget that all four major companies in our industry grew not only organically but also through cycles of acquisitions and mergers.

Today we are observing M&A in our sector abroad, mainly between smaller companies, and I cannot rule out the possibility of similar developments in our country.

Investing in innovation and technology

What can we expect in terms of your organisation's plans and development strategy in 2025? What moves do you intend to make in this direction?

Investing in innovation and technology is crucial to our continued growth and success.

At Deloitte, having proven our ability to adapt effectively to the constantly changing business landscape, our strategy has placed technology, sustainable development, and our people at its core, all with the aim of improving the experience of our clients and people.

Our focus remains on our people, and we continuously invest in their development, leveraging the rich multidisciplinary experience of our international network.

With respect for quality, ethics and integrity, we continuously evaluate and adopt new technologies and sustainable solutions, ensuring our competitiveness in an ever-changing business environment.

The development of Corporate Responsibility and Sustainability initiatives by implementing Deloitte's global program, WorldImpact, is also important, which is at the center of our strategy and aims for a better future for all.

We will continue to develop actions that focus on our four central pillars:

Access to education, addressing climate change, respect for equality, diversity and inclusion, and responding to the greatest challenges of local society.

With stability and orientation towards achieving our strategic goals, and always in collaboration with our partners, I am convinced that 2025 will find Deloitte stronger and more upgraded, ready to offer more to its client businesses, its people and society.

(Source: InBusinessNews)