As the UK continues in the transition period and still obeys the EU rules, what does this mean for the tech sector? What does the UK look like post-Brexit? How will Brexit impact businesses? These questions have been looming over for a while now. Despite the continued uncertainties, the tech sector has been doing better than most amidst Brexit.
But, as a technology leader, the UK has been facing some serious issues. So, if you are a part of the tech sector in the Brexit era, here is what you need to know.
First, the VC funding for startups has become harder due to increased risks and lack of clarity. According to a survey by Global Tech Advocates, 68% of respondents cited Brexit as a number one obstacle for UK tech companies. The report shows, a quarter of respondents do not wish to invest in a British tech company for the next twelve months due to Brexit, and 55% would not want to expand their business to the UK.
Attracting and keeping talent is another huge obstacle that the UK tech companies are facing currently. According to a study by TopCV, 16% of UK tech employees said they were planning to leave their current job and the UK, with an aim to advance their career due to Brexit. Stating the consequences of this, Amanda Augustine, careers expert at TopCV said, “Hiring and retaining the right staff can be tough even in the steadiest of times. Employers will have to incentivise their employees and find creative ways to retain them. Also, because of new vacancy openings, Brexit can be an opportunity to advance their career for those wanting to break into the industry.”
The biggest threat of all is the UK’s risk of losing the place as a world leader in Artificial Intelligence. Until now, the UK has aggressively positioned itself as a pioneer in AI and it had well positioned itself to take full advantage of the opportunity. In fact, the UK ranks third in the world for its AI talent, research, and expertise, after the US and China and is certainly the European hub for AI excellence. While this could have been a jewel in the UK’s crown post-Brexit, the AI sector has been highlighted as at most risk. There is a threat that Brexit could impact the talent pool and investments in AI so severely that the UK loses its position as a world leader.
Cybersecurity skills gap could widen in the UK once the transition period is over. The tech sector will hire fewer employees from outside the country due to stricter border regulations. This means UK businesses will have to outsource their security management to third-party vendors due to skills shortage. As cyber-attacks continue to evolve, companies need skills in diverse areas of security, to stay ahead of the hackers. The only way for the UK to bridge this skills gap is to encourage the next generation to consider a career in cybersecurity.
As the transition period is already underway, tech businesses and startups need to understand that Brexit is going to be a long-term challenge that is not going to go away soon. Startups in the UK need to monitor the changes that come along with it and take necessary actions to keep up with the uncertainties. If you a technology partner to help you sail through this period of uncertainty, get in touch with us. Check out our digital solutions at the gatewaydigital.com or write to us at firstname.lastname@example.org.