Brexit Could Be Good News for Domestic Developers
The uncertainty surrounding Brexit is prompting plenty of concern across all industries. But there could be a positive aspect for established UK companies.
A recent survey among IT executives across the UK has shown widespread concern that the industry might face a talent shortage after Brexit. This in itself is nothing unusual and reflects the uncertainty across all industries across the UK, and indeed the EU, as the “deal or no deal” debate continues to rage.
However, for established businesses that offer bespoke software development services, this could represent an opportunity. The study found that two thirds of businesses are worried that they will lose vital talent in the field of software development, while more than three quarters have plans to recruit developers from overseas and are concerned that Brexit will make this difficult.
Plugging the talent gap
It doesn’t take a business genius to see that the first place these employers will look in seeking to fill this talent gap is to domestic talent. The inevitable shortfall in imported workforce will force UK business owners to place a greater focus on up-skilling their existing staff, and, where possible, filling talent gaps with skilled UK-based workers.
Typically, staff have a greater inclination to really commit to a company when it is willing to invest in them and it gives them the encouragement and opportunity to grow and develop. Ultimately, investing in the existing workforce in this way doesn’t just plug the skills gap, it also reduces staff attrition rates and leads to a more engaged, motivated and productive workforce.
Good news for SMEs in the tech arena
Of course, that sounds great in theory, but is not something that will be achieved overnight, or indeed in six months. The interesting point to note about the above survey is that it was carried out among “large UK organisations.” While upskilling from within might be a long term gain, the immediate solution is far simpler, and that is outsourcing.
SMEs have long been the lifeblood of the UK economy, and they make up more than 99 percent of businesses in the private sector. Established UK developers with a good reputation and track record will be in greater demand than ever.
Greater scope for investment
Raising capital is always a challenge for small businesses. However, the almost inevitable depreciation of the pound post-Brexit will make UK SMEs a far more attractive proposition for private equity firms. For the UK’s burgeoning software development sector, this could signal the start of a boom. The increased demand for services from those large companies that are struggling to meet their software development needs will mean they are ripe for investment and growth.
There is also a greater opportunity for software developers looking to go it alone. The UK economy will inevitably go into a period of instability post-Brexit, and it is at times like these that entrepreneurs and freelancers typically thrive.
Weighing the positives and the negatives
While nobody is disputing the fact that Brexit is going to bring plenty of challenges in terms of trade, tariffs and the like, there are positive aspects to most things. For the UK tech sector, it might not all be bad news after all.