Technology industry issues

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In general, the challenges faced by the Technology industry relate to growth and/or a recovery in sales after several years of harsh cost adjustments due, in some cases, to dramatic reductions in turnover. Industry concentration and consolidation is likely to increase in order to obtain cost saving synergies leading to improved profitability, the main players being corporate investors.

An increase is also expected in the future, particularly in medium-size transactions, since growth in venture capital activities is envisaged that will make the market more dynamic.

The distress status of certain players and/or shareholders may also force them into transactions. The current situation favours the search for and identification of opportunities having attractive values that allow the consolidation of the industry.

Information as an asset

The information held by technology companies is one of their main assets. For this reason, it must be adequately protected from the threats to which the information is exposed. In a crisis and contingency environment such as the current one, companies tend to review their economic items in order to identify and eliminate superfluous costs.

Information security in this environment must not only not be questioned but must be prioritised, because new risks such as internal fraud, information leaks or regulatory infringement are becoming more prevalent and the likelihood of occurrence is rising.

The risk of the information being disclosed without due consent or authorisation increases considerably in the technology industry, where business is based mainly on electronic communications between people through communication networks. Information security is today a process that bolsters and protects an organisation’s assets and services. In these circumstances, particular attention must be paid to and work must continue on information security for these assets and services.