Brexit is here – what does it mean for the UK tech industry?

The day has finally arrived. For some, Brexit day heralds new-found certainty, while for others it will raise apprehensions about the coming months and years. Either way, we’ve reached the point of no return.

But what next? This will be the question on the minds of many business leaders, particularly those in the tech sector. As an industry with a heavy international focus, the tech sector has been extremely vocal in its opposition to Brexit. However, as of 31 January 2020, we are no longer members of the EU. While we are now in the transitioning stage, it is abundantly clear that tech companies must adapt in order to survive in post-Brexit Britain.

The task may sound daunting, but it is important not to panic. There are, in fact, various plans of action that can offer partial peace of mind and help tech businesses future-proof their strategies.

It’s not all doom and gloom

Despite widespread fears of a downturn in the sector, many tech business leaders remain cautiously optimistic – hopeful, even. Let’s not forget that the UK tech sector is robust: this has been demonstrated time and time again. We must only look to record-breaking levels of VC investment being poured into the industry to realise its promise. In 2019, at the height of political uncertainty, the sector attracted a record £10.1bn of investment.

New opportunities are also coming to light; for one, the government has indicated that there will be a reduction of red tape as the UK parts from the EU, which will put the former in a position to set a new gold standard for innovation. It is hoped that the reduction of red tape will open up new research and development capabilities.

What challenges do we face?

That said, tech leaders have not regained full confidence just yet, with concerns about the future still rife. For instance, according to Studio Graphene, 69% of tech start-ups fear that Brexit will hinder their ability to hire the staff they need to help their business grow.

To overcome this particular obstacle, opening a new office abroad or upskilling existing employees are viable options which can help businesses retain and attract the talent they need. At Studio Graphene, we decided that an international presence was going to dovetail most closely with our business plan, and our newly opened office in Lisbon ensures that we can continue to meet our clients’ needs and make the most of European tech talent.

Of course, international expansion will not be for everyone, but there are many other avenues to explore. Looking inward and enhancing the skills of your current workforce is an incredibly powerful defence mechanism against any future hurdles. Not only will employees benefit from investment in their continued development, but businesses can continue to build on existing relationships and nurture the talent they already have access to.

Beyond this, it is worth modelling all of the possible outcomes of Brexit and how they could impact your costs and bottom line. Exploring how future tariffs and export rates might affect output and production costs, for instance, will give firms an indication of how much money they should be putting aside into their ‘rainy day’ buffer fund.

The murky waters of Brexit are, admittedly, difficult to navigate – and will be for the foreseeable future. With this in mind, tech firms should consider seeking professional advice on how to manage various aspects of the Brexit process, from financial planning to HR strategies. While there will be a cost, Brexit and business strategy consultancies could offer an invaluable tool to help organisations plan for, and protect themselves against, any potential Brexit fallout.

Discussions over the UK/EU relationship are still ongoing, and the next few years certainly won’t be plain sailing. Businesses should take heed of any, and all, advice on offer to ensure they remain competitive and adaptable. However, given the tried-and-tested resilience of UK tech, I have every confidence that the future looks bright.

Ritam Gandhi worked as a consultant for a decade for the likes of Accenture and Bank of America Merrill Lynch before, in 2014, going on to found Studio Graphene – a firm that specialises in developing amazing blank canvas tech products. Working with many start-ups alongside innovation teams in more established companies, the London-based agency plans, designs and builds astounding tech products for its clients. Gandhi and the team also use their experience and expertise to help leaders grow their business from ideation to launch and beyond.