Savvas M. Klitou: In the evolving professional services sector, digital literacy is paramount

According to Savvas M. Klitou, Regional Managing Partner at Baker Tilly, accounting firms are no longer just the custodians of financial data.

Instead, they are becoming strategic partners of their clients in business growth and innovation.

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 be pivotal in ensuring financial transparency and compliance. As businesses globalise, firms will offer integrated services, including international regulations, digital transformation and sustainability advisory. Their role will evolve from traditional accounting to being strategic partners in business growth and innovation, leveraging technology to provide real-time insights and data-driven decisions. This shift will enhance their influence, making them indispensable in navigating complex financial landscapes and driving sustainable business practices.

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

Adapting to rapid technological changes is a major challenge, requiring the integration of new technologies and upskilling our team. Regulatory changes and continuous compliance demands add complexity, as we must stay abreast of evolving laws and standards. Attracting and retaining top talent in a competitive market is critical, as is sparking interest in the profession among younger generations to ensure a steady pipeline of skilled professionals. Additionally, balancing these challenges while maintaining high service standards and client satisfaction is a constant endeavour. These factors collectively shape our strategic priorities and operational focus.

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?

Traditional services will remain foundational but will evolve with technology. Significant growth is expected in ESG advisory, digital transformation and cybersecurity. Emerging areas include data analytics, AI-driven insights and blockchain for enhanced transparency and security. We are exploring opportunities in sectors like fintech, healthcare and renewable energy, where technological advancements and regulatory changes have created new demands for specialised advisory services.

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

The professional services industry is being reshaped by digital transformation, the focus on ESG and globalisation. Firms are investing in AI, blockchain and data analytics to enhance service delivery and provide personalised insights. Locally, regulatory compliance and market demands are driving changes. ESG advisory services are growing as clients integrate sustainability into their strategies. Firms are expanding globally and forming alliances to offer comprehensive services. To adapt, firms are upskilling their workforce and fostering innovation. Embracing these trends ensures that firms remain competitive and relevant in a rapidly evolving landscape.

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?

Cyprus has the potential to strengthen its position as an international business hub by leveraging its strategic location, favourable tax regime and robust legal framework. Enhancing digital infrastructure, promoting innovation and ensuring regulatory compliance are key steps. Additionally, fostering a business-friendly environment and investing in education and skills development will be crucial. These measures will enhance Cyprus' global appeal and competitiveness, attracting more international businesses and investments.

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?

In the evolving professional services sector, digital literacy is paramount. Employees must be proficient in using advanced technologies such as AI, data analytics and cybersecurity tools to enhance service delivery and protect client data. Additionally, soft skills like adaptability, problem-solving and effective communication are essential for navigating the complexities of modern business environments. Continuous learning and professional development are crucial to staying ahead of industry trends and maintaining a competitive edge. Investing in training programmes and fostering a culture of innovation will ensure that our workforce remains capable of meeting future demands.

(Original photo by TASPHO)

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