Effects of Brexit on the Global Tech Industry

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Last week U.K. voted an out of the European Union. This decision taken by the U.K. citizens is in the wake of migration crises, tethering laws and a rising threat from Terrorism. Not only is Europe affected by the Brexit adversely, but the ripples of the same were felt throughout all the major economies and various industries. Share markets across the global economies went for a toss, trade was hampered and the Brexit continues to be a Harbinger of loses. The complete exit of the United Kingdoms will commence over the matter of next two years in accordance with the article 50. This transition phase would prove to be a period where we can expect a great catapult in Britain’s economy or we can expect a recession.While Indian markets were gravely affected by Brexit, the losses faced by sterling were far worst. Its impact on millions of organizations in the Technology sector of U.K. led to a recoil. Many of the Tech brands have their European headquarters situated in U.K. for the ease of business and trade in Europe. But post Brexit, there are a number of limitations and tariffs that will be forced on Britain as forced on other countries that are not a part of the European Union. This will lead to an increase in cost for the services that were provided earlier by the Tech industry in U.K. at a much subsidised rates.Comprehending the situation, Tech leaders across the globe were in opposition of Brexit. Consequences of Brexit would majorly affect the ease of doing business in Europe through U.K. Big players like Amazon have invested a huge chunk of money in Britain to establish it as their distribution centre for Europe. Things are going to be extremely difficult for many more players that have their Headquarters located in U.K.According to reports Indian Tech Giant Tata Consultancy Services which has the most exposure to the U.K. markets was heavily affected by the collateral damage done to the Tata Group of Companies. Besides TCS and Tech Giants facing heavy loses, what further worries the multinationals is the ease of acquiring talent in U.K. post Brexit. Prior to Brexit the talent in Britain and Europe had the freedom to move around in all parts and transfer knowledge as easily as possible. But once the restrictions are implemented it will create a stagnant lake of talent that limits to perform within the borders only.London which was regarded as the “Silicon Roundabout”, will be left crippled. Reports suggest that Startups and Unicorns from the west have already started the shifting process from London to Paris and Berlin. London will no longer be the Tech hub or the Silicon Valley of Europe. With other major capitals still a part of the European Union, they will have an advantage over London when it comes to capturing business and techie projects.The issue lies with the confusion created by Brexit. Although within the last week it has only displayed its negative side, but what stops U.K. from resurging into an independent giant like the United States. There are enough opportunities and risks in Britain, the gamble is for those that can prophesize. Currently all the major Tech players are carefully observing the U.K. market, fingers crossed and hoping for it to get back on its feet.

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