Savvas Klitou, Regional Managing Partner and Head of Tax Services at Baker Tilly, analyses the weaknesses exposed by recent crises, the strategic challenges beyond 2025, and the new directions required for the Professional Services sector to achieve sustainable growth.
FIVEFOLD RESILIENCE WITH AN EMPHASIS ON STRUCTURAL CHANGE
Climate change is increasingly burdening the global economy, affecting service activities, particularly tourism and trade. At the same time, cybersecurity risks, energy costs, and geopolitical developments are creating new uncertainties in an already fragile environment.
Within this context (Global Digital Report), there is a urgent need to comply with ESG, Cybersecurity, and Digital Transformation regulatory frameworks.
Therefore, the sector is called upon to play a leading role by investing not only in systems, but also in transforming talent and adopting technologies such as data analytics, artificial intelligence, and automation.
THE CHALLENGES THAT WILL SHAPE CYPRUS AFTER 2026
The major challenges relate to collaboration and human capital management. Cyprus must invest in skills related to artificial intelligence, digital tools, and data analytics.
In addition, the transition to digital tax systems and the implementation of global tax reforms are creating new regulatory and operational demands.
The regulatory environment is becoming increasingly complex, with heightened requirements for governance, transparency, and sustainability, forcing organizations to rethink and redesign their business models.
STRATEGIC RESILIENCE AND GROWTH FOR THE SECTOR
Building true resilience requires a three-pillar approach: Technology, Human Capital, and Governance. Leveraging technologies such as artificial intelligence and data analytics enhances decision-making and operational efficiency.
Equally important is targeted investment in ESG and cybersecurity capabilities, which are now critical to long-term competitiveness. Attracting specialised talent and adopting flexible working models further enhance organisational agility and resilience.
SECTORS WITH THE GREATEST POTENTIAL FOR SUSTAINABLE GROWTH
The most promising opportunities lie in clean energy and the green transition, sustainable finance, infrastructure, and innovation.
The development of centres of excellence in digital and financial technology (FinTech) can position Cyprus as a regional hub. Strategic investments in green technologies and export-oriented sectors will help build a resilient, and sustainable economy.
THE MESSAGE FOR THE SECOND HALF OF THE DECADE
“Deep transformation, skills development, and digital transition, these are the key pillars for resilience in an era of constant change.”
