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Impact of Brexit on outsourcing in the UK

Brexit is a very important topic in the UK and its impact on businesses has been widely discussed, but there's still scope for discussion about its impact on the outsourcing industry. This article will explain what Brexit means for outsourcing companies in the UK, why it matters and how it has affected UK based industries and businesses.

Impact of Brexit on outsourcing in the UK

The importance of Brexit for outsourcing in the UK cannot be underestimated. It has had an enormous impact on how business is done and what services are provided by companies in this area.

There are a few ways that the initial withdrawal of the UK from the EU impacted businesses:

  1. Talent troubles Finding the right talent is already an immensely difficult task, but with the impacts of Brexit which increased restrictions across the nation and also increased labour costs, this became a task of herculean proportions. The true heart of the outsourcing industry is trust and talent. Brexit initially made both of these harder to come across.

  2. Plummeting pound The cost of exporting services from the UK became much cheaper right after Brexit, and this resulted in a lot of organizations setting up shop with foreign outsourcing agents, specifically to India. Simultaneously, the devaluation of the pound impacted the UK economy and made it harder to hire new talent or face all the costs of a growing business in a growing outsourcing industry.

  3. Project delays Layoffs and changes in organizational systems along with the general rerouting of many business practices through the EU (Quite a few UK based businesses previously working with businesses situated in the EU had to renegotiate terms and processes), there were often major delays in project delivery, especially in the IT and software development sector. This resulted in loss in businesses opportunities as well as hampered growth for both UK based domestic businesses and the thriving UK outsourcing industry.

  4. Network Impact Tech and software based start-ups in the UK took a major hit as the previous hub for IT expertise, London, experienced a shift in business climate. Start-ups in London now have to go a longer way to find the right manpower, market and funding. This is because Brexit led to a lot of businesses packing up and relocating or generally added more boundaries and barriers in access to information, market scope and expertise, which was previously the cause for London being so famous in the tech and IT outsourcing community.

Impact of Brexit on UK Businesses

The impact of Brexit on UK businesses is a very important issue. The UK's economy has been affected by the decision to leave the EU, and this will affect all sectors of society.

The UK's outsourcing industry was in dire straits as a result of Brexit, but here's some ways the most efficient businesses were able to help themselves get through this difficult time:

  • Hire employees who are already familiar with working overseas or have experience with international companies;

  • Use language interpreters if necessary;

  • Find out what kind of support services are available for your company;

  • Consider adding more staff members so that you don't have to rely entirely on contractors for support services

  • Increase international wings of operations and partner with offshore organizations.

Regardless of the negative impacts that Brexit may have had, businesses still continue to survive whereas some continue to grow and thrive. We've helped a lot of companies during these tough times by being their financial and accounting partners and saving them the additional costs of hiring in-house or setting up a team. We would love to help your business grow and thrive just the same! Feel free to get in touch with us to learn more about our services and how we can help you!

Contact Us Today!

If you're looking for an accounting outsourcing service in the UK that could help your business thrive and grow, contact us today. We'll provide you with a free consultation so you can learn more about our services.


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