How evolving talent strategy is reshaping software business models

In this episode, we discuss how research and development (R&D), team operating models, geographical distribution, and compensation have all been altered in the software industry and how that affects M&A.

Join us as we talk about how the software economy and the businesses that power it have evolved, the disruption that the pandemic and macroeconomic environment are causing in the industry, and how decision-makers can proactively manage and leverage this disruption to move their long-term growth strategy forward.

For the software industry, flexibility is one of the key watchwords, especially as workers demand more flexibility in when and where they work. Companies need to consider how that flexibility affects not just the way they develop products, but their entire operating model. Leaders also need to think very intentionally about how they impart the organization’s culture to new joiners in the workforce. If you don’t get the culture right, you won’t be able to do anything else right.

The elements of flexibility and culture are also essential when considering potential mergers and acquisitions. How the target company is adapting to a new operating environment is a key indicator of how well it might fit in and help advance an organization’s long-term strategy.

Hear insights from:

  • Allie Earle O’Rourke, EY-Parthenon Principal,  Software Strategy Group
  • Keith MacKay, EY-Parthenon Managing Director, Software Strategy Group

Along with our EY Tech Connect moderators: 

  • Andrew Young, EY Global TMT Analyst 
  • Christina Winquist, EY Global TMT Go-to-Market Strategy Leader 

Key takeaways: 

  • Companies should maintain pandemic lessons on how to pivot and adapt.
  • They need to choose the right operating model for their organization to adapt to macroeconomic headwinds.
  • Flexibility is essential, but strategies are needed for maintaining the organization’s culture. Parameters can be set around remote work to provide flexibility along with accountability.
  • There are different R&D strategies and collaboration tools that companies can adopt. Examining strategies and tools chosen by a target should be part of due diligence.

For your convenience, full text transcript of this podcast is also available.

Allie O'Rourke

EY-Parthenon Principal, Software Strategy Group, Ernst & Young LLP

Keith Mackay

EY-Parthenon Managing Director, Software Strategy Group, Ernst & Young LLP


Episode 10


20m 16s