After Brexit, there will be some kind of impact felt across all industries and sectors in the UK. Some industries will benefit, some will be hit hard, and a lot will fall somewhere in the middle.
If you’re in the tech industry you’re right to be concerned. There are several options and different paths the UK can take post-Brexit that will affect how tech companies operate.
Here’s a look at some of the implications Brexit will have over tech. Taking a look at how businesses might be affected from the ground up.
6 Implications Brexit Will Have Over Tech
1# Investment in Tech Set to Continue
Even with the ongoing negotiations leaving the tech sector uncertain about what the future holds after Brexit, overseas investing has not dropped for the tech industry.
This is largely due to the foothold London has on global tech, and the confidence and backing the industry gets from the UK government. EIS investments in SME’s from companies like IW Capital is set to continue, as are larger investments from some of the biggest tech investors in Silicon Valley.
2# Artificial Intelligence and Innovation
London is home to the third-largest technology hub, behind Silicon Valley and New York City. The UK is heavily invested in AI development and digital innovations, and Brexit shouldn’t impact this is a negative way.
The main issue will be some additional hurdles from an employee and legislation level. Such as utilising workers from the EU, and the expected changes in many of the EU laws UK businesses currently adhere to.
3# E-Commerce and Overseas Trading
The UK has a strong online trading presence, making a higher percentage of online sales than both the EU and the US. Brexit presents a number of issues to e-commerce businesses. Most notably there will be new regulations to follow, and increased taxes and shipping costs.
All products being exported will have to pass customs and meet new standards and regulations. It looks set to be an administrative headache, especially for the smaller e-commerce businesses.
It’s a hurdle e-commerce businesses will have to jump as and when it happens, and more importantly when the exact implications are known.
4# Higher Workforce Investment
One of the main benefits within the tech industry after Brexit is expected to be seen at an employee level. Tech companies are already struggling to deal with the demand for highly-skilled workers in the tech industry.
Brexit will do nothing to help this, so expect to see tech companies investing heavily in their workforce post-Brexit. This means higher wages, improved working conditions and benefits, and an increase in training and investment in the workforce. All benefits for anyone seeking employment or more opportunities within the tech industry.
5# Opportunities for the Tech Industry Post-Brexit
Even with all the uncertainty surrounding Brexit, it’s largely believed that there will be more opportunities and benefits for the tech industry post-Brexit.
The UK will still attract billions in overseas funding and highly-skilled workers from around the globe. As will UK companies continue to innovate and produce the kind of cutting-edge tech that impacts all of us on a daily basis.
With Brexit pending you’re right to be concerned. There’s a lot of planning and preparation needed, but the bottom line is that the future looks bright for the tech industry.
6# Data Protection Implications
One of the most obvious disruptions is going to be how tech companies handle data and the laws surrounding data protection after Brexit.
The free flow of data is what drives innovation, and the UK tech sector relies heavily on being able to receive and share information across borders and around the globe. Brexit will shake-up the current regulations, and there is a good deal of uncertainty about what this means for tech companies.
The government has already published guidelines outlining some of the technical amendments to the data protection legislation. The way tech companies handle personal data isn’t set to change, but how they handle EU data is going to change.
The UK will become a “third country” when it exits the EU. EU organizations will have to ensure the data being transferred in and out of the UK meets new lawful requirements.
The bottom line is that more red tape is being wrapped around the flow of data and information. This is going to affect all industries that have dealings with the EU, with the tech sector being one sector that could do without the expected delays and increased administrative trail.
Author: Eskander Khalid