Brexit and the IT Sector
Brexit, as you must have heard by now, is due to make a considerable impact on the British way of life when the UK leaves the EU on 29th March 2019. Without that connection to the EU, the rules are going to change and this will be felt most keenly in business.
And the impact this is going to have on the IT sector will be particularly noticeable and has the potential to cause a number of headaches for those involved with technology as they adjust. Understanding these upcoming obstacles, therefore, is the key to tackling them effectively.
Reduction in Talents and Skills
Like most industries in Britain, technology thrives upon foreign workers bringing unique perspectives and skills to the table. It’s this varying makeup which makes Britain a world leader, but one of the main selling points of Brexit is that it will reduce immigration into Britain. Naturally, obtaining a visa will become more difficult for those outside of Britain and this could have a huge impact on the resources available. Whilst this is troubling news for the industry, the good news is that the technical skills associated with IT mean that obtaining a visa may make things that little bit easier.
Brexit technology impact
Brexit has created a real sense of uncertainty not just in the UK and Europe, but around the entire world. Accordingly, there’s a fear that foreign investment into the UK tech sector is going to be hit significantly. In particular, startups are likely to bear the brunt of this financial downturn as, without investment, they’re unlikely to even reach the startup stage. Therefore, it’s crucial that organisations in the technology sector can firmly underline their credentials in order to demonstrate that they’re worthy of investment.
Change in Trade Rules
Under existing EU rules, trade between member countries is encouraged thanks to preferential rates and procedures. However, once Britain has left the EU, these rules will no longer apply and the British tech sector is likely to discover that trading with their neighbours is not as beneficial in terms of finances as it once was. And the real worry is that this could lead to price increases back home which will hit not just the technology sector’s profit margin, but also the consumer’s finances. This is why preparing for new financial outlooks is going to be essential for businesses in the IT sector.
Threat to Data Flow
Britain and the rest of the EU are still going to be working very closely together despite Brexit, but for technology companies this is going to be dependent on data protection regulations. UK data protection will no longer have to match existing EU regulations, so this could seriously impact the free flow of data between the two.
Without the freedom to share information easily or legally, firms in the IT sector are going to find that communication and business with their most local export markets could be seriously hampered. Understanding, therefore, the best way to deal with personal data from the EU is highly important.