INSIGHT

Technology Industry Outlook 2026 

David Aiello • November 24, 2025

Industries: Technology

---

The technology sector continues to evolve at breakneck speed, with artificial intelligence now embedded in every layer of your business operations. As you plan for 2026, understanding the key trends shaping your industry—and preparing strategic responses—will determine whether your organization thrives or merely survives in this transformative period. 

From AI governance to global expansion, from talent acquisition to regulatory compliance, the challenges you face are complex and interconnected. Here’s what you need to know about the forces reshaping the tech landscape and how to position your company for success. 

6 Trends to Prepare for in 2026 

1. AI Governance Becomes Mission-Critical 

Building Trust in Intelligent Systems 

AI has moved from experimental technology to operational necessity. Your customers interact with chatbots, your developers rely on code assistants, and your business decisions increasingly depend on predictive analytics. But with this integration comes responsibility. 

In 2026, establishing formal AI governance frameworks isn’t optional—it’s fundamental to your business continuity. Leading organizations are implementing: 

• Up-to-date acceptable use policies that evolve with your expanding AI toolkit 
• Centers of excellence uniting business and technical teams around AI strategy and ethics 
• Human-in-the-loop models to verify and validate AI-generated outputs 

The companies that build robust governance foundations will earn stakeholder trust and maintain competitive advantage as global AI regulations continue to mature. 

2. Global Expansion Accelerates Amid Rising Complexity 

Navigating International Growth in a Connected World 

Digital transformation has erased many geographical boundaries, opening new markets for your products and services. But while Big Tech companies leverage their established global infrastructure, middle-market players face unique challenges in international expansion. 

Your expansion strategy must account for: 

• Fragmented regulatory environments across regions 
• Local data privacy laws that vary significantly by jurisdiction 
• Complex tax structures that differ from country to country 

Success in 2026 requires more than ambition—it demands rigorous market analysis, deep understanding of local regulations, and alignment of your compliance frameworks across borders. The competition for market share is global, but victory belongs to those who expand with precision and long-term vision. 

3. The Talent Shortage Intensifies 

Scaling Your Workforce in a Competitive Market 

Finding qualified technology professionals remains one of your biggest operational challenges. Skills in AI engineering, cybersecurity, cloud architecture, and data analytics are particularly scarce—and every company wants the same talent you’re pursuing. 

Forward-thinking organizations are adapting by: 

• Expanding global hiring infrastructure, often partnering with Professional Employer Organizations (PEOs) for streamlined international onboarding 
• Reassessing workforce models to optimize remote, hybrid, and in-person collaboration 
• Investing in upskilling programs to develop existing team members for emerging roles 

Your ability to attract, develop, and retain talent will directly impact your capacity for innovation and growth in 2026. 

4. Data Security Evolves From Priority to Imperative 

Building Trust Through Comprehensive Data Protection 

Your data represents both your greatest asset and your most significant vulnerability. Customers demand transparency about how you handle their information, while regulators enforce increasingly strict compliance standards. 

In 2026, data governance must be embedded throughout your operations: 

• SOC reporting frameworks strengthen your security posture and demonstrate commitment to protection 
• GDPR compliance remains mandatory for any data processing involving EU citizens 
• Similar privacy frameworks are emerging globally, requiring proactive adaptation 

Leading organizations treat data governance not as a compliance burden but as a strategic differentiator in building customer trust and competitive advantage. 

5. M&A Activity Reshapes the Competitive Landscape 

Strategic Consolidation Drives Innovation and Scale 

Despite market volatility, mergers and acquisitions remain central to growth strategies across the tech sector. Whether you’re considering acquiring complementary technologies or positioning your company for sale, the M&A environment demands sophisticated preparation. 

Key considerations for successful transactions include: 

• Comprehensive due diligence to identify risks and maximize value 
• Alignment of financial, tax, and IP structures with buyer expectations 
• Proof-of-concept pilots in new markets to validate scalability 

Cross-border transactions add layers of complexity, with regulatory, financial, and tax implications varying significantly by jurisdiction. In 2026, M&A success rewards those who combine strategic foresight with disciplined execution. 

6. Tax Compliance Grows More Complex 

Adapting to Evolving Policy Landscapes 

Your tax strategy directly impacts profitability, especially as you expand globally and navigate shifting policy environments. From international tax frameworks to domestic incentives, staying compliant requires proactive planning and continuous adaptation. 

Critical focus areas include: 

• Permanent establishment risks from distributed and remote workforces  
• R&D and innovation tax credits that fund technological advancement  
• Transfer pricing compliance for complex intellectual property portfolios
• Clean energy incentives that reduce costs while supporting sustainability goals 

Strategic Imperatives for Technology Leaders: Turning Trends Into Competitive Advantage 

As you navigate these trends, certain actions will position your organization for sustainable growth: 

• Prioritize governance and compliance. Build robust frameworks for AI governance, data protection, and regulatory compliance before they become urgent necessities. Proactive investment today prevents costly remediation tomorrow. 
• Think globally, act strategically. International expansion offers tremendous opportunity, but success requires careful planning. Assess markets thoroughly, understand local regulations, and build scalable operational frameworks that support long-term growth. 
• Invest in your people. The talent shortage won’t resolve quickly. Develop comprehensive strategies for attracting, developing, and retaining skilled professionals. Consider non-traditional talent pools and invest in continuous learning programs. 
• Prepare for transformation. Whether through organic growth or M&A activity, your organization will likely undergo significant change. Build financial, operational, and cultural foundations that support agility and adaptation. 
• Optimize your tax position. Work with advisors who understand both domestic and international tax implications of your business decisions. Strategic tax planning can fund innovation while maintaining compliance across jurisdictions. 

The technology landscape in 2026 presents both unprecedented opportunities and complex challenges. Your success depends on understanding these trends, preparing strategic responses, and executing with discipline and vision. 

Ready to navigate the complexities of 2026’s technology landscape? BPM’s technology industry professionals can help you develop strategies for growth, compliance, and operational excellence. Contact us today to discuss how we can support your organization’s success.