As many people know, the UK has voted to leave the European Union effective of Friday, 29 March 2019, with a 21-month transition period. There has been a provisional agreement over three issues, most notably budget commitments and EU citizens’ rights, and talks have now moved to agreeing on the future relationship between the UK and EU.
Outsourcers fear the coming Robot Revolution. Specifically, they are concerned that robots and artificial intelligence (AI) will wipe out traditional outsourcing. The reality is that the technologies behind the Robot Revolution will create the greatest outsourcing opportunity of all time…cloud services.
Outsourcing agreements come to an end, just as do some political treaties.
What can those steering the perils of partition learn from each other? There are few experiences as visceral as the turmoil of politics. As a British citizen, I have taken my part and cast my vote on 23rd June, 2016. The comparison of events since with recently managed outsourcing exits is the source of inspiration for this article.
Know The Rules
In its campaign against the UK's continued membership of the European Union, 'Vote Leave' claimed that EU procurement rules, which govern the purchase of goods and services by public sector bodies, cost UK taxpayers £1.6bn a year. It also claimed that 1.9 million days a year are lost to red tape delays.
Is it likely or possible that the UK can save this money and time cost by changing the public procurement rules after Brexit?
Many US companies have turned to outsourcing their software development to get quality software that supports innovation, generates revenue, and grows their business while benefitting the US economy. However, current US political discussions raise concerns about offshored jobs.
As Brexit slowly begins to become a reality, there are worrying signs that British businesses are cancelling vital data protection reforms - in the mistaken hope that rules will change once the UK has left Europe.
During the election, Donald Trump said that he would stop work from leaving America, and would tax offshored products at 35%. Weeks before Trump is sworn in as President of the United States, he is hard at work wheeling and dealing with American corporations. Will these deals tell us about the “Trump Plan” for outsourcing? Let's dive right in and see!
Recently I attended the Brexit & Global Expansion Summit in London, an event that brought together politicians, businesses and investors for discussions on the investment implications of Britain’s tectonic decision to leave the EU.
One of the sectors we discussed in depth was offshoring and outsourcing. No one has a crystal ball, but what is clear is that Brexit has challenged so many fundamental economic assumptions about the value proposition for a British business operating a customer service centre in the UK.
The world is growing increasingly complex. As such, agile capabilities and the ability to quickly adapt to changes in global environments are becoming more and more important. Events like the rise of extremist terror organisations and the dissemination of technology across the world have significantly changed the way in which enterprises interact. Businesses are quickly waking up to the rising demands placed upon them by this new international marketplace. However, too often changes caused by worldwide events catch organisations off guard.
I visited Cape Town and Durban recently as a guest of BPESA (Business Process Enabling South Africa) and attended the South Africa BPM Summit 2016. The summit featured local business leaders, industry influencers, and politicians eager to create jobs in South Africa by riding the wave of business process outsourcing (BPO).
One of the key arguments that really defined the Brexit referendum in the UK was migration. British voters supported an exit from the European Union largely because they wanted more control over their borders. Those arguing for Brexit say that they are not trying to end migration entirely, just they want to ensure that the people who enter the UK have the right skills. Nobody should be able to enter just because they were also born in Europe.
For as long as I can remember, arguments about outsourcing have played a part in the US election cycle. In the final stages of the presidential election the two candidates will make promises they can’t keep and declarations about how bad outsourcing is for the American economy.
With the United Kingdom set to leave the European Union, the impact on the Polish outsourcing market looks likely to be both positive and negative. The full extent on outsourcing is yet to be determined, but some predictions can be made based on various scenarios.
If Polish talent leaves the UK
Europe is in turmoil after Great Britain’s vote to leave the European Union. Those who now claim to know what will happen now – in outsourcing or in other areas – will make two big mistakes: First, they will show that they don’t understand what Brexit is. Brexit is, to use the words of author Nassim Nicholas Taleb, a “black swan”: an unexpected event with largely unforeseeable consequences, just like 9/11 or the Lehman Brothers bankruptcy filing. Second, they will simply be wrong.
The result of the EU referendum will undoubtedly have a profound and long-lasting impact on the entire UK population and is likely to be something that is truly generational. Whether we voted for Remain or for Leave, however, Brits now have to assess where we are and how we maintain our position in the global economy.