How The Brexit Result Impacted the Technology Sector

Written by EO Executives on Aug 17, 2016

Since Britain voted to leave the EU there has been an overcast of uncertainty throughout the technology sector. Particularly since many working in this space were greatly in favour of remaining within the EU, as it provides the opportunities to sell, hire and invest within Europe. 

Following the referendum, the team at Executives Online set to survey over 1,000 industry leaders and gain an insight into what impact the result has had on businesses, whilst identifying where the impact has been most prevalent.  

The survey data showed the technology sector was largely unconfident with many respondents stating they have already seen a negative impact. Respondents also specified they anticipate several challenges around receiving investments to start new projects and without funding are less likely to continue with business initiatives. 

The boards and executive managers working with technology offer an opposing stance and are more positive. So Executives Online offer confidence that the tech sector remains optimistic about the potential opportunities Brexit could bring. 

What could Brexit mean for technology?

Despite the less optimistic outlook from the tech sector respondents also outlined potential opportunities, including:

  • Lower value of sterling will improve value abroad
  • Expansion in the market area
  • More opportunity to trade with worldwide markets
  • Change management

Some of the risks to mitigate against listed by this group as a result of the UK’s decision to leave the EU include:

  • Economic instability
  • UK Trade barriers
  • Unstable environment
  • Difficulties trading with Europe due to tariffs 
  • UK Residency 
  • Reduction in client spending profile

How will hiring be impacted?

Permanent hiring is most likely to be impacted following Britain's decision to leave the EU as 45% foresee a decrease over the next 3-6 months. However, interim hiring is less at risk with only 29% of respondents predicting a decrease.

Overall the tech sector has been more risk adverse and less optimistic than other industries around hiring over the coming months. Nevertheless, our team encourages that the optimism from the boards and executive managers will help reinforce the opportunities to continue with business initiatives. 

We would love to hear if your organisation has seen any changes or improvements since Britain’s decision to leave the EU, so feel free to get in touch by commenting below.

Hows your hiring?

If you are thinking of bringing in additional resources to help navigate the changing business environment as a result of Brexit, then download our free talent hiring checklist and make sure you've covered all the bases before you go to market.

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