It’s the 9th year in a row the firm has witnessed such growth. The 6% growth in FY2019 was driven in part by its tax line, which saw a growth of 10%, although its audit and advisory & consulting lines also fared positively (7% and 3%, respectively). Managing partner John Psaila attributes the strong year in part to the fact that “we continuously seek to enhance our existing services and explore and develop fresh offerings in response to new market needs.” He used Brexit and the ongoing US-China trade wars as examples of how it can be difficult to speculate about the future, while still maintaining a positive outlook, stating: “Uncertainty brings economic opportunities.”
“Urgent need for guidance”
The tax line seems to exemplify what the firm is seeing across the board--that the sophistication of rules, and the rapidity at which they are developing, require what tax leader Raymond Krawczykowski called an “urgent need for guidance” in navigating the regulatory environment or synthesising complex, often “vague” documentation. He highlighted that over the last five years, for example, there had been no fewer than six directives focused on information exchange, including cross-border arrangements, anti-money laundering legislation and country-by-country reporting, to name a few.
While the audit line saw a 7% growth--fueled in large part by alternative funds in private equity and real estate, according to audit leader Christiane Chadoeuf--the 3% growth in advisory & consulting is more modest, when compared to its 20% growth the previous two years, or the 12-15% average prior to that. Advisory & consulting leader Joël Vanoverschelde, said, “The advisory agenda has shifted from regulatory matters to more operational matters.”
Investing in talent, technology
As Psaila explained, there is a drive on the part of the firm to invest in its people (around 2,300 strong in Luxembourg, with an average age of 32) and digitalisation. In terms of talent, jobs are changing so “we cannot afford to be late,” Psaila said. “We are in a country whose economic success is beyond its size: the demand for talent exceeds the supply, which requires us to expand our profile search area.”
Among the initiatives recently undertaken to put human stories at the centre is the creation of the first impact report, the aim of which is to “create positive change and empower our people to make it happen”, according to Psaila.
Deloitte Luxembourg’s FY2019 results were presented at its “Greenhouse” space in its new D.Square building, inaugurated in June of this year. As operations leader Sophie Mitchell pointed out, they’d been “a bit the victim of our own success” in the space, with the auditorium being used nearly daily by its network. Moreover, staff formerly spread across three different buildings are now housed in the same location, with a smaller group based in Esch. Mitchell said the new site had also caused them to “reflect on how we were working”, and the new site had significantly changed how people interact, visible through the use of breakout areas for increased interaction, or the allowance of more flexible working arrangements.