Brexit and the UK Technology sector

15 November 2019

We have indeed tried to stir away from politics in our Blog and have taken quite a “neutral” stance in the upcoming (..or not) Brexit for the United Kingdom. This does not mean we do not have an opinion but the core purpiose of our blog is to educate and share knowledge on mobility, tech and the relevant industries rather than takesides on political and other “flammable issues of our time.

Nonetheless, we cannot deny that it is often a discussion we have with our peers at events and networking activities we participate in as the uncertainty of Brexit still looms over us like a mysterious shadow of uncertainty. Many UK based small and medium-sized tech businesses have not yet made any preparations for the UK leaving the EU and most believe the government is simply not listening to the concerns they have ahead of the upcoming Brexit “fallout”.

We often hear that “Brexit means Brexit” and “Deal or No Deal” iks the only plan (As we have already taken a strong stance to leave the EU no matter the result of the protracted negotiations) but the realities of the UK’s departure from the EU are still unclear with whatever they may involve. Tech companies, marketing agencies, ebentrepreneurs investors and CEOs, the lack of clarity means that we are all still asking ourselves: what will it be like to conduct business post Brexit, and what will it mean for the UK’s tech sector?

So let’s have a look at some of the potential issues for the UK tech industry post brexit in no particular sequence as we see all of them of almost equal importance.


Recruiting the best possible talent in Tech is a tough challenge on any given Monday let alone post-Brexit and with the undoubted fact the UK will be considered a less appealing place to work for EU nationals, which has already led to additional competition to recruit homegrown workers. One of the biggest recruitment concerns in the industry is developers. Hiring a developer of a high calibre is already a major and daunting task in current climate in London and often requires overseas recruitment efforts to find the right person. With Brexit, this process could be made even more difficult once EU nationals are harder to employ.


UK has always been at the forefront of Tech and Innovation – especially when it comes to autonomous vehicles and mobility – and it remains to be seen how the forthcoming breakaway from the EU affects our productivity and how easy it will be for UK companies to stay current and modern whilst also competitive and up to date with the latest technologies.


Tech entrepreneurs, freelancers and other workers are a “mobile bunch”. They tend to work from anywhere for anyone, everywhere with many of them working across the UK borders in the EU. It is estimated n early half of exports from the UK’s digital sector go to the EU, how the government finally resolves the Brexit challenge is vitally important to our workforce.


The UK’s decision to leave the EU does not only affect freedom of movement but also has a huge impact on data. The UK tech industry will still want to maintain the integrity of data flows to and from the EU after Brexit which is expected to put pressure upon cloud providers and for pretty much every tech company, all of which may have to, for example, in the UK as they will have to not only change many processes, contract agreements and pricing (due to pound devaluation and other factors) but also update legal data sharing contracts, service agreements, data processing records, controller to processor addendums etc. to guarantee data transfers from EU to the UK remain unaffected.


In the unfortunate scenario of a no-deal Brexit the UK’s position as the centre of European tech investment could be catastrophic and potentially mean that twe are able to attract less investment from other areas in the world.

In order to overcome this, the UK government needs to urgently work towards a Deal whilst businesses need to work harder to prove themselves to Investors and solidify their product proposition and strengths.

The government has continued to create documents and other resources all business can use to prepare for Brexit. The essential resources that all tech businesses should be using include:

  • Government’s Get ready Tool
    No matter which sector your company operates within, this comprehensive tool gives an overview of the steps your enterprise should be taking now.
  • The No-Deal Readiness Report
    This document sets out in one place what will change if we leave without a deal and outlines what the government is doing to get ready for Brexit on 31 October.
  • ICO International data transfers
    You are a UK-based business or organisation, and the GDPR currently applies to your processing of personal data, and you send personal data outside the UK, or you receive personal data from the EEA, or you receive personal data from countries or territories which are covered by an adequacy decision.
  • GDPR (General Data Protection Regulation)
    The national supervisory authorities of EU and EEA states and the European Data Protection Board, the independent body established by the EU GDPR to ensure consistency within the EU as regards interpreting the law and taking regulatory action.
  • Personnel and tech skills
    Information for UK businesses on service provision if there’s a no-deal Brexit. Also, information about EU citizens moving to the UK after Brexit should be read in association with the advice regarding the provision of services.

Despite the many questions looming over the industry, reports still indicate that the tech sector remains strong with wages in the UK remaining at a high level whilst job growth is still outperforming other sectors of the economy. What is more, another encouraging sign is that investment into UK tech companies still outweighs the rest of Europe which offers hope and confidence to the sector.

Can you think of any other effects Brexit may have on our Tech industry, prices or companies? Are you perhaps a customer that has already noticed an increase in prices or decrease in availability? Or perhaps you are a business working in the Tech industry and have had to prepare for Brexit one way or another o noticed a hesitation in your clients?

Let us know all about it to ensure we update our blog accordingly and share your view of the current situation through your eyes.

What are your thoughts on the above? Any comments or suggestions of something we should add to our Blog?

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