The biggest risks IT companies face in 2019

Technology companies play a major role in today's interconnected world, but they face their fair share of challenges.

The IT sector is a major contributor to economies all over the world. According to Statista, global market spending on computer and mobile equipment, telecom services, hardware maintenance, tech consulting and other services is well over $3 trillion.

As technology continues to advance, there's no doubt that this lucrative industry will continue to expand. In fact, research from CompTIA shows that the adoption of cloud, edge and 5G products and services could see the sector grow by 4% to $5 trillion over the next few months.

But there is a caveat with CompTIA's statistics, with the industry body claiming that growth of 6% or more is attainable if "customer-buying patterns for core tech products and services maintain" and "spending on emerging tech accelerates". It believes that economic slowdown and trade issues could hamper further growth.

However, according to experts, there are other issues that could affect the growth of the global technology market. Natasha Good, partner at law firm Freshfields, takes the view that technology companies face a number of critical risks today. "From what we are seeing from our global clients, societal pressures, investment risks and liabilities around data analytics are some of the greatest causes for concern," she tells IDG Connect.

A challenging market

She says high-growth businesses, particularly those with innovative, disruptive business models, face pressure to expand market share aggressively and to keep innovating. "This pressure can give rise to misconduct risk, such as employee misconduct, market disclosure issues and accounting fraud. 

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