Will IT outsourcing boost the UK GBP? Brexit Impact On UK IT Industry
Britain predicted the forecasts of its economy inflation but will the software development companies be able to withstand the cacophony?Brexit, the exit of Great Britain from the Europe Union, confirmed by the referendum voting system in June 2016, stirred the global economy market. Pessimists from all around the world warned the UK about the doomsday that will follow because of the Brexit. The after-effects are already biting the UK economy slowly, the painful problems are occurring visibly in the country’s currency devaluation.
- UK dropped one place down (from fifth to sixth) in global GDP
- The pound value plummeted
- All kinds of the talent pool became deserted
- Import costs became very expensive
All these chaotic noises resulted in the economy’s inflation. The UK is stumbling and stuttering at its feet to take up all the disincentives.
IT sector – Post Brexit referendumAfter June 2016, altogether the tremor wave caused the UK to shake on all sectors. But the IT sector remained with promising growth irrespective of the shock wave. The tech sector showed a two-fold growth over the overall national economy.
But the fundamental issue of IT skill gap remains at a deficit because of the disruptive technologies such as robotics, IoT and big data analytics. The capital hub needs to supply human resources to fill the bridge. London needs to send in 1M entrants annually for the next 7 years with strong IT and tech skills to remain in demand and competition in the global IT market.
Business Challenges for companies
The Declining PoundDevaluation of the nation’s currency continues as the Brexit continues to become more realistic after every political EU-Brexit update. The drop in the pound value points to the risks— an increase in the costs of domestic products, imported goods, and overheads of labor resources. It is challenging for companies to hire people and run operations at affordable rates. There is a steep fall of price in the exporting services, for the lower values of the pound against several global currencies. It is hurting the UK economy by lowering its position in the global GDP. This is turning into a fraught case of liabilities exceeding assets, presenting the UK’s case of declining economic prowess.
Summoning the StartupsLike any other nation, UK believed in the quick fix to the failing economy was by providing the funding to start-ups and generating employment opportunities. The government is pushing up in generating lucrative jobs by promising skillful tasks over the low maintenance jobs.
But the start-up rally will not sustain if the UK doesn’t bring in tech specialists with a marginal increase every year. The funds will go into a sinkhole if smart options like outsourcing are not considered.
Delays in ProjectsScarcity of human resources, mitigation in migration due to the drop in the economy and huge costs overheads results in delayed software developments. UK business is missing a lot of opportunities and the growth is at a snail’s speed. Brexit may not be the only reason for major catastrophes that happened, but it closed the time frame window quickly.
Key takeaways in outsourcingBusinesses have had their share of experiencing bad outsourced project outputs. While outsourcing the project it is important to hire a company that mitigates the risks and drives business values through innovative outsourcing.
Related: Drive Business Values through Outsourcing
- Hire well defined IT teams who resonate with your business values and ethics. A company that doesn’t understand your core values cannot exhibit the outcome you hoped for
- Prefer a global delivery model system. It is a proven model with low-cost efficiencies and real values on investments. An IT outsource provider who has the team distributed across global, onshore and offshore, can offer cost savings, faster project completion and achieve larger benefits.
- Alternatively, you can also prefer the companies who have remote teams and in-house team functioning under different time zones, aimed to keep the client center always functioning around the clock.
- Decide a strict payment schedule and communication channel. Review each progress step and provide genuine feedbacks in time.
- Be respectful and operate your outsource partner as part of your business team.
Your Next Stop for IT outsourcing: Stutzen TechnologiesStutzen has successfully delivered hundreds of outsourcing engagements across the globe with an aim to streamline operations and deliver sustained business value. We offer end-to-end, result-oriented outsourcing solutions, which are geared towards revolutionizing task chains and breathing agility into workflows for leveraged growth. Our outsourcing services portfolio has been applauded for:
- Delivering 100% customer satisfaction to the businesses in the United Kingdom, USA and KSA
- Integrating seamless outsource project delivery models with enriched customer support
- Ensuring agility of a small company with the stability of a large public-listed organization
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