Overcoming tax compliance challenges with ONESOURCE created greater expansion and competitive edge for the tech giants
The technology sector is renowned for innovation, but when it comes to indirect tax, many tech giants are held back by legacy systems, mounting technology debt, and the relentless pace of regulatory change.
As companies expand globally, and digital business models multiply, the complexity and risk of indirect tax compliance can overwhelm even the most sophisticated organizations.
Two industry leaders, Adobe and Cisco, offer compelling lessons in how embracing Thomson Reuters ONESOURCE solutions can break this cycle, reduce technology debt, and empower both tax and IT teams to focus on strategic growth.
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The indirect tax data dilemma: Why tech is at risk
Adobe’s transformation: From fragmented processes to global control
Cisco’s rapid growth: Scaling compliance for a global enterprise
How ONESOURCE alleviates IT resources and reduces technology debt
Why digital transformation is essential for competitive advantage
The path forward: Lessons for the tech industry
The indirect tax data dilemma: Why tech is at risk
Tech companies operate in a world where indirect tax data is scattered across multiple platforms, countries, and business units. The result? Siloed information, manual reconciliations, and a high risk of errors. According to the State of the Corporate Tax Department Survey 2024, 88% of tech companies have automated less than half of their tax processes, leaving them vulnerable to inefficiency and compliance failures. As tax authorities worldwide increase scrutiny and accelerate digital mandates, the cost of inaction is steep: 72% of under-resourced tax departments face audits, and 50% are penalized, with most penalties ranging from $10,000 to $50,000. (Data points from the Survey were used in the 2025 Corporate Tax Technology Report.)
Adobe’s transformation: From fragmented processes to global control
Adobe’s story is a textbook case of how technology debt can stifle operational efficiency. With millions of transactions spanning multiple countries, Adobe’s tax team was mired in spreadsheets and three separate tax systems for U.S., international, and e-commerce operations. Completing sales tax returns took up to two weeks and adapting to new regulations, such as the EU’s VAT reforms, was nearly impossible with their decentralized approach.
Recognizing the need for a radical change, Adobe’s Director of Global Indirect Tax led the move to ONESOURCE Determination, consolidating all indirect tax processes onto a single, global platform. The results were transformative:
- Drastic reduction in IT burden: The IT director’s original goal was to remove 40% of SAP customizations related to tax. With ONESOURCE, Adobe achieved a 95% reduction, freeing IT from endless support tickets and custom coding.
- Major time savings: Sales tax return preparation dropped from two weeks to just 30 minutes, allowing tax professionals to focus on strategy and analysis.
- Total compliance and confidence: Adobe was able to comply with new EU regulations on day one, and the tax team could present accurate, country-specific tax metrics to senior leadership with confidence.
- Elevated tax department value: Freed from manual tasks, tax professionals evolved into strategic advisors, supporting business growth and innovation.
Cisco’s rapid growth: Scaling compliance for a global enterprise
Cisco’s journey reflects the challenges faced by fast-growing tech companies entering new markets. As Cisco expanded its global footprint and diversified its distribution channels, its tax operations became increasingly decentralized. This fragmentation created a patchwork of systems, inconsistent compliance, and limited visibility-making it difficult to respond quickly to regulatory changes or support business expansion.
Cisco turned to ONESOURCE Indirect Tax to centralize and automate its global tax processes. The benefits were immediate and far-reaching:
- Centralized, real-time tax data: ONESOURCE provided Cisco with a unified view of transaction tax exposures across more than 100 countries, streamlining compliance and audit readiness.
- Reduced IT and operational costs: By eliminating highly customized, region-specific tax systems, Cisco freed IT resources and reduced system maintenance expenses.
- Agility in regulatory response: With ONESOURCE, Cisco could rapidly implement tax changes to support new business models, market entries, and evolving global mandates.
- Strategic resource allocation: Automation reduced the time required for returns processing, enabling the tax team to focus on planning, analytics, and supporting business growth.
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How ONESOURCE alleviates IT resources and reduces technology debt
Both Adobe and Cisco’s experiences highlight a critical truth: legacy tax systems and manual processes create a drain on IT resources, increase the risk of compliance failures, and stifle innovation. ONESOURCE addresses these challenges by providing:
- Seamless integration: ONESOURCE connects easily with leading ERP and financial systems, reducing the need for custom development and ongoing IT support.
- Automated, end-to-end tax lifecycle management: From real-time tax determination to automated compliance, reporting, and audit trails, ONESOURCE covers every stage of the tax process-minimizing manual intervention and error risk.
- Cloud-based scalability: As companies grow and enter new markets, ONESOURCE scales effortlessly, supporting new jurisdictions and regulatory requirements without proportional increases in IT workload.
- Proactive compliance updates: Thomson Reuters’ global team of experts ensures the platform is continuously updated for the latest tax rules, reducing the burden on internal IT and tax teams to monitor and implement changes.
Why digital transformation is essential for competitive advantage
The stories of Adobe and Cisco demonstrate that digital transformation in indirect tax is not just about compliance-it’s about unlocking operational efficiency, reducing costs, and enabling strategic growth. In today’s rapidly changing world, technology companies that cling to manual processes and fragmented systems will fall behind. By embracing ONESOURCE, organizations can:
- Eliminate technology debt and manual inefficiencies
- Free IT and tax professionals to focus on high-value, strategic work
- Ensure global compliance and reduce the risk of costly audits and penalties
- Gain real-time visibility and control over tax data across all markets
The path forward: Lessons for the tech industry
As the pace of global business accelerates and tax regulations grow more complex, the need for a unified, automated tax solution has never been greater. Adobe and Cisco’s success with ONESOURCE is a powerful testament to the benefits of digital transformation: reduced technology debt, alleviated IT burden, and a future-proof tax function that supports business innovation.
For technology companies seeking to compete-and win-in today’s environment, the message is clear: it’s time to break free from legacy systems and manual chaos. ONESOURCE is the full tax lifecycle solution that empowers tax and IT teams to drive efficiency, ensure compliance, and fuel the next wave of growth.
