Research released from Pivotal Software, Inc., has found business leaders in the UK (73% of CIOs) believe the country will lose its position as a global business leader following Brexit.
In a recent study of 101 UK CIOs, 101 UK IT decision-makers and 2,000 UK employees, diminishing access to talent (59%) and investment in technology (46%) were deemed the top factors that may hinder business success.
To combat the impending threat, companies have recognised both continuous development and innovation will better prepare them for market uncertainty.
Alan Coad, vice president and managing director at Pivotal said: “The results of our study demonstrate a clear a lack of confidence amongst business leaders that Brexit will allow organisations to prosper on a global stage. In order to survive, companies must adapt their mindset to one that embraces agility, staying relevant through a focus on continuous innovation. This must be the case for their software practices too, ensuring they are best positioned to contend through the current Brexit negotiations and beyond.”
Pivotal’s study found software was considered key to helping companies adapt, with 93% of CIOs and 84% of ITDMs citing the ability to develop their own software as essential for equipping their organisation to respond.
Following the UK’s decision to leave the EU, the study reveals 44% of CIOs have invested more in software to help optimise their business for innovation, and 17% have frozen all new investments to see the true impact Brexit will have first.
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Georgina O’Toole from leading UK tech analyst firm, TechMarketView, states, “While the results of the Pivotal survey make for depressing reading, they are in line with our own research among technology suppliers in the UK. Companies fear they will struggle to plug the gaps if they no longer have access to skilled EU workers and there could be barriers when selling into the EU. Investment in software will be crucial to meet the needs of a post-Brexit world – particularly in light of the UK’s Industrial Strategy – and this will certainly create opportunities for technology suppliers, particularly as we move beyond March 2019 and enter a period of increased certainty.”
Positively, a majority of respondents stated they are approaching Brexit as a trigger for change, with 72% of CIOs explaining the UK’s decision to leave has forced them to look at opportunities to expand business overseas and into new markets.
James Governor, Analyst at RedMonk said: “Brexit will be the biggest systemic shock to British business in the more than 70 years. The scale of change will require an unprecedented investment in IT, with in-house application development becoming more important than ever to deal with complexity.”