Brexit’s Impact on Global Tech: Biggest Loser from a ‘No Deal’ Brexit will be UK Plc, Including Tech Start-Ups and Scale-Ups in Search of Funding - ResearchAndMarkets.com
DUBLIN--(BUSINESS WIRE)--Feb 8, 2019--The “Brexit’s Impact on Global Tech - Thematic Research” report has been added to ResearchAndMarkets.com’s offering.
The risks to the UK tech sector from a disorderly ‘No Deal’ Brexit include a hit on funding for innovative start-ups and an inability to service IT contracts and build viable future ones. Technology 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, with potentially 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.
Five key areas where challenges must be overcome to mitigate the impact of Brexit on the tech sector are: 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 to avoid barriers to market access, and retaining access to EU funding streams such as Horizon 2020 and the European Investment Fund.
With no clear picture yet emerging as to what Brexit will ultimately look like, tech executives could be forgiven for adopting a ‘wait and see’ approach before deciding what to do. The big global tech players have the capacity to withstand Brexit uncertainty. Smaller players facing a skills shortage are more likely to lose out, as will telecom operators, which need skills to tackle full-fiber rollout.
The biggest loser from a ‘No Deal’ Brexit will be UK Plc, including 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 either put off a decision indefinitely or opt for an alternative base that is both tech-friendly and offers strong English-language skills.
For example, Ireland saw over 55 Brexit-related investments in 2018 with over 4,500 associated jobs. In Germany, foreign direct investment figures for 2017 from the country’s economic development agency Germany Trade & Invest (GTAI) showed the number of UK investment projects jumping by 21%, with the UK being the largest source of merger, acquisition and shareholding investment. The volume of enquiries to the GTAI from the UK also rose sharply.
The latest report “Brexit’s Impact on Global Tech - Thematic Research”, states that global tech titans with a European base should survive the Brexit turmoil, but smaller companies lack the resources and bandwidth to cope with the expected fallout from ‘No Deal’, including diverging regulations, more red tape and talent acquisition challenges.
The report lists out the major milestones in the journey towards Brexit, and provides an easy-to-follow parliamentary roadmap showing how the Brexit issue is likely to develop over the coming months.
ScopeThis report summarizes five Brexit scenarios and the corresponding outlook for six tech sectors: hardware, software, internet, TV, telecoms operators and space. It is based on interviews with specialists on key issues in each sector.
Key Topics Covered:
1 WINNERS AND LOSERSThe big global tech players have the footprint to weather the storm The biggest loser will be UK Plc
2 BREXIT TIMELINE
3 PARLIAMENTARY ROADMAP
4 BREXIT OUTCOME ANALYSISMay’s Deal No Deal Customs Union Renegotiated Deal
5 SECTOR PREDICTIONS FOR BREXIT’ SCENARIOSHardware Software and services Internet TV broadcasters Telecoms Operators Space companies
6 BREXIT IMPACT ANALYSISCurrent State: Macroeconomic concerns Current State: Regulatory concerns
‘Hard Brexit’ situation: Macroeconomic concerns
7 FURTHER READING
9 APPENDIX: OUR THEMATIC RESEARCH METHODOLOGY
Companies MentionedAmazon Facebook IBM Oracle
For more information about this report visit https://www.researchandmarkets.com/research/4vccz5/brexits_impact?w=4
View source version on businesswire.com:https://www.businesswire.com/news/home/20190208005224/en/
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SOURCE: Research and Markets
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PUB: 02/08/2019 07:44 AM/DISC: 02/08/2019 07:44 AM