There has been an unequalled vote down of Prime Minister Theresa May’s Brexit judgment which can lead to a lengthy ambiguity among the UK and EU clients spending budgets and decisions. How much business is drawn from the EU and the UK market and what could be the budget for IT companies is the question.
Now, is the time of crisis, while the Brexit is allegedly going to happen on March 29, 2019 and there are still only 4 options with them? One of them is a deal option, which is going to be gradually tougher given the 230 vote which PM Theresa May, secured in assembly yesterday; there are other options such as no-deal, no-confidence vote, and referendum. Probably, the government is expected to develop a strategy B by 21st January, but it is not actually easy to influence the parliament to approve that. So, it is somewhat worrisome in terms of where Brexit is moving.
In terms of business, the UK region is the second major market for the IT industries. It is near about 17% to 18% of the share in terms of export revenue. Likewise, Rest of Europe is around 11% of the revenue. Currently, the IT companies are quite well aware with how the dealings in UK are conducted. The business decision making has become slow. Prudently following up on the concern of passports and corresponding standards, which may develop as economic services and is very significant as a market for the participant companies. Because of number of regulatory standards, few compromises may require to be reached in passports and further corresponding standards wherever some regulatory outline is common.
Financial services and fintech will still play a significant role in growth story in United Kingdom and therefore it is very important for the IT companies. Presently the business models of Indian industries are provided to EU and the UK in isolated ways. As the decision making gets extended and as we all recognize the businesses want continuity and stability.
London is one of the leading financial hub and important market. There is a lot of estimation regarding how the financial segment would be successful and some of the major regulars would be from that region. How are Indian businesses organizing themselves for the instability that lies ahead? Currently, it is business as usual and industries are coming up to see how the procedures are going to be employed. As we are aware, businesses need steadiness and so there is anxiety regarding all the options being existing.