2025 CFO Tech Outlook Survey: Are tech companies ready to re-enter growth mode?

Earlier this year, BDO USA conducted a comprehensive survey of 100 technology company Chief Financial Officers (CFOs), with revenues ranging from under $50 million to over $3 billion. This survey, conducted in February 2025, explores the perspectives of CFOs on their priorities, the challenges they’ve faced over the last few years, and their outlook for 2025.

This article examines how financial leaders are navigating the Australian and international industry challenges, offering insight into the key areas of focus for tech CFOs.

Protecting consumer data a top priority for CFOs

Data privacy and security are paramount for tech CFOs in 2025, with 89 per cent of respondents prioritising the protection of consumer data. This heightened focus is driven by the increasing regulation around AI and the need for companies to act as responsible data stewards. To enhance security, 41 per cent of tech CFOs plan to bolster cybersecurity measures to improve overall business resilience. Additionally, 56 per cent stated that they are deploying privacy technologies, and 54 per cent are implementing local data storage strategies. These measures aim to safeguard personal and financial data, ensuring transparency and compliance with evolving regulations. Furthermore, 81 per cent of tech CFOs express concern about cyber and data privacy risks, underscoring the critical importance of robust data protection practices.

Similar concerns are emerging in Australia, where recent events have brought data security into sharper focus. In Australia, the focus on cybersecurity and data privacy has intensified following several high-profile breaches in the tech and logistics sectors. Local CFOs are increasingly expected to take a proactive role in cyber resilience, with many embedding cybersecurity into broader financial and operational strategies. The regulatory environment is also evolving, with heightened scrutiny around data governance and AI usage. As a result, Australian tech CFOs are prioritising investments in identity management, threat detection, and recovery planning to ensure compliance and protect stakeholder interests whilst maintaining trust.

Investing in the tax function

Investing in the tax function is a significant concern for tech CFOs, with 83 per cent expressing concerns around tax risks. Only 22 per cent of tech companies reported no issues meeting compliance deadlines, highlighting the need for better resourcing and strategic planning. To mitigate tax risks, 52 per cent of CFOs believe their tax function is adequately resourced, while 48 per cent have a defined plan to manage operational tax risk. Many companies are exploring tax credits and incentives, with 48 per cent pursuing R&D tax credits and 57 per cent planning to increase investment in tax reporting software. However, inefficiencies in the tax function can lead to manual errors and employee burnout, prompting CFOs to evaluate their current tax function with a view to further outsource routine compliance services.

Tax compliance and risk management are also top of mind for Australian CFOs, who face a unique set of local and global challenges. Australian tech CFOs are also grappling with the complexity of tax compliance amid shifting regulatory expectations and global reporting standards. With inflationary pressures and resource constraints, many are reassessing the efficiency of their tax functions. There is a growing trend toward automation and outsourcing to reduce manual errors and improve accuracy. Additionally, CFOs are exploring R&D tax incentives and digital tax reporting tools to better manage risk and unlock value. Strategic investment in the tax function is seen as essential to maintaining compliance and supporting long-term growth.

Maximising profitability

Maximising profitability remains a key focus for tech CFOs, who are optimistic about the 2025 year ahead despite recent volatility. In 2024, only 54 per cent of tech companies reported increases in profitability, down from 80 per cent in 2023. To address profitability challenges, 52 per cent of CFOs plan to rationalise or expand their product or service offerings, while 48 per cent are adjusting their pricing strategies. Additionally, 51 per cent are considering restructuring or initiatives to drive sustainable growth. Tech CFOs are also exploring various funding avenues, with 57 per cent planning to utilise working capital and 54 per cent seeking private funding. These strategies aim to position tech companies for significant opportunities in 2025, leveraging cost optimisation and product pivots to enhance profitability.

In line with their US counterparts, Australian CFOs are focused on profitability, though their strategies reflect local economic conditions and market dynamics. Notwithstanding this, profitability remains a top concern for Australian tech CFOs, particularly in a climate of economic uncertainty and rising operational costs. Many are pursuing cost optimisation through automation, workforce restructuring, and supply chain efficiencies. At the same time, there is a strong emphasis on digital transformation to drive productivity and unlock new revenue streams. CFOs are also playing a more active role in strategic planning, using advanced forecasting tools to navigate volatility and identify growth opportunities. These efforts reflect a broader shift toward sustainable, innovation-led profitability in the Australian tech sector.

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