With new technologies and regional growth creating a greater need for professional advisory services, the sector is adapting fast to cover an increasing number of bases. Eric Tong, audit partner and southern region financial services industry audit leader at Deloitte China, gives his insight on industry trends and career opportunities in the sector.

Advisory services are a growing part of Deloitte’s revenue stream. What prompted Deloitte to move into consultancy and how does it complement its core accounting business?

Earlier this year, the International Accounting Bulletin released its World Survey 2016, based on fee income and staff data of accounting networks and associations worldwide. This survey indicates that advisory services have in recent years been the star performer for professional services firms, and this is unlikely to change anytime soon.

That may explain why it has become important for professional services firms to step up their focus on advisory services. Advisory is now one of Deloitte’s key business areas. Today, business is moving at a fast pace and clients need value-added, industry-focused insights and advice. Digital strategy, big data and cybersecurity, as well as risk advisory and corporate governance, are areas of increased focus.

What are the main factors driving the advisory services sector in Hong Kong?

There are increasing needs in the advisory services market. A significant number of multinational companies have chosen Hong Kong as their regional hub, so their needs are not just for Hong Kong but for Asia-Pacific. We need to be well positioned to advise them on their Hong Kong and regional operations.

The rise of advisory services is also driven by the rapid development of new technologies, such as AI applications and cognitive technology, which have significantly changed the conventional audit practice. To give you an example, cognitive-enabled processes can allow auditors to read between the lines of financial statements and offer insights to clients related to risk management and financial operations.

Where are you seeing the greatest demand for advisory services? Have you noticed any regional or professional variations?

There is demand ranging from digital strategy, cybersecurity and strategy and operations, performance optimisation to benchmarking, risk advisory, risk strategy and corporate governance.

Since the financial crisis, everybody is talking about how we can make the financial world more secure. There is a higher degree of public scrutiny along with new rules and regulations. We can expect ongoing demand for advisory services related to regulatory compliance. In addition to the emergence of new technologies such as blockchain, cloud computing and big data, we are also seeing a growing demand for IT and cybersecurity advisory services.

We have also witnessed a rapid increase in China-outbound investment – both M&A and FDI – over the past five years, and this momentum is likely to continue in the medium to long term.

What are the major challenges facing the advisory services sector in the coming years in terms of recruitment?

Making sure we have the best talent to provide world-class professional services is always one of the top priorities in our daily operations. I believe it is important for professional bodies, universities and firms like Deloitte to help equip our professionals and students with the broad skill sets needed for the changing landscape in the advisory services sector. We also need our people to be able to “think outside the box” and be acute to a global business environment. Good analytical skills and presentation skills are necessary.

To attract and retain top talent, our firm offers a structured career path, coupled with development and global opportunities, as well as a caring culture which caters to the needs of the new generation. It is more than just providing a competitive remuneration package, but we need to see how to engage with our people and raise their sense of belonging.

What skills are required for working in the field? Are some professional backgrounds more useful than others or can individuals from diverse fields thrive in it?

Talent diversity is the cornerstone for providing multidisciplinary professional services spanning audit, financial advisory, business and IT consulting, tax, and risk advisory. The general perception is that Deloitte is an accounting firm and we do look for talent with a business and finance background. But we also look for people from different academic or professional backgrounds, in particular science, technology, engineering and mathematics (STEM) graduates. We live in a world of new technology and this is also reflected in changes in our recruitment criteria, where we now focus on acquiring tech-savvy people with innovative and creative mindsets.

Is there a typical career progression?

There is a well-established career structure within professional services firms that starts from associate and goes up to partner. However, the audit practice is currently undergoing a major transformation. Typically in the past, auditors usually focused on financial statements and records, and their main contacts in a company might be CFOs or financial controllers. However, as the business world has become more complex, I have witnessed the immense changes in the role of auditors, where we have increasingly become a business advisor to our clients.

What does Deloitte look for in a potential hire for its advisory services division?

Advisory is playing a major part in the transformation of the audit industry. We want our people to be equipped with the skills and knowledge to provide a comprehensive professional service to our clients. With the increasing application of new technology in various industries, such as financial services, healthcare and manufacturing, it is inevitable for us to develop our capabilities in technology and engineering. We highly encourage talent from tech and engineering backgrounds to join the professional services industry and contribute their skills and knowledge.

What qualities separate a great advisory services professional from a merely good one?

As clients face a super-complicated business ecosystem, a great advisory services professional is someone who really understands the client and is able to offer tailor-made solutions and a comprehensive suite of advisory services. These should not only resolve a client’s problems, but help them achieve sustainable growth. Generic advice will not be well received by the client.

What have you found to be the greatest challenge working in the advisory services sector?

Every client requires a different solution, and that’s why every engagement is a challenge. At the same time, engagement challenges are also the genesis of our job satisfaction. It is also important that we keep abreast of what’s happening in the marketplace, so that we can understand the problems and issues faced by our clients. Therefore, we should never stop learning and always be creative and curious. A major difference between an excellent advisor and a mediocre is that an excellent advisor has the vision to provide practical solutions, and always think ahead of the needs of clients.