How severe will the Brexit impact on tech companies be? Companies worldwide need to reformulate their strategies and progress action plans in preparation for Brexit.
The rejection by Members of Parliament (MPs) of British prime minister Theresa May’s Brexit deal has left the technology industry staring at a ‘No Deal’ scenario. This could have severe impacts on the ability of tech companies to service contracts with customers and worries over falling investment and failing competitiveness because of the ongoing political and economic uncertainty.
Brexit impact on tech companies: The biggest loser will be UK Plc
GlobalData’s report Brexit’s Impact on Global Tech – Thematic Research highlights five key areas as challenges that must be overcome to mitigate the impact of Brexit on the tech sector. These include: securing the continued free flow of data; ensuring continued access to talent; enabling the frictionless movement of tech products and services across borders; providing alignment on rules covering digital services; and retaining access to EU funding streams.
Key features of the report include:
- Evaluation of a range of possible outcomes to Brexit, all of them largely dependent on political twists and turns
- Identification of the winners and losers from Brexit from across the global tech sector
- It includes analysis of how Brexit will impact six tech sectors and assess the impact on people, politics, economics and business of likely Brexit scenarios
- It lists out the major milestones in the journey towards Brexit
- Provides an easy-to-follow parliamentary roadmap showing how the Brexit issue is likely to develop over the coming months
The biggest losers will be UK tech start-ups and scale-ups in search of funding. The UK has typically been the default stop for US tech investment. But any Silicon Valley CEO looking at the UK’s likely post-Brexit hangover (and current political turmoil) will do one of two things. Either put off a decision indefinitely or opt for an alternative base that is both tech-friendly and offers strong English-language skills.