How Brexit will influence the IT industry??
The decision of the UK to leave the European Union is the most disputed issue today. Brexit is a abbreviation that refers to Britain’s decision to quit the EU (British Exit).
Technology in the UK will be affected both in the current year and the next year, due to political instability. Big companies believe that recruitment market will be more difficult because recruiters will not have access so easily to young programmers, leading to a decrease in labor market development software.
IT industry is a hard industry accessible. Brexit will create many problems for IT industry in the UK as attracting professionals in this domain will be more difficult. Among the issues raised by this decision many companies will go to European countries.
Great Britain is aware that European students are very responsible so they will try as much as possible to attract further in their country.
As we all know, many Romanian IT industry professionals are established in the UK because of the advantages and opportunities that they have.
In recent years, about 30,000 specialists have emigrated to the UK in the IT sector. Romania is one of the most popular countries in this regard, because young graduates are well trained in this field and salary expectations are not as high as those of the British.
How Brexit will influence the IT industry of Romania?
The specialists estimate that Brexit will have a positive effect on the IT industry in Romania since many professionals currently are working in the UK, will return home if they do not have other possibilities.
Romanian specialists consider that the Brexit is as an opportunity in terms of developing the IT sector in Romania.
Returning specialists in our country should be seen as an opportunity for development of the IT industry, to focus on the development of this industry by offering competitive advantages stimulating IT professionals to stay in the country.
Given the continuous development of IT industry in Romania, if there are professionals who want to return home, they will be able to find a job more easily compared to other areas.
Large recruitment companies in Romania took the first steps in developing campaigns to motivate young programmers on the return. They have started a campaign to try to motivate programmers to engage in Bucharest and Cluj, where the IT market is in constant development, showing the benefits of returning to our country.
The IT industry will not be adversely affected by Brexit, Romania should benefit from this phenomenon creating opportunities for young professionals as compared to UK standard of living is much cheaper in Romania and salaries have increased in recent years.
Brexit effects on Romania.
After many discussion regarding the UK decision, experts have concluded that the Brexit impact on Romania in the short term is limited because transactions between Romania and the UK are not on high level considering that exports to the United Kingdom during 2015 represented 4.4% of total exports, representing 1.5% of GDP.
However, any company that is engaged in partnerships or business relationships with British companies will be affected by leaving the UK in the EU, being forced to change their strategy in terms of operational, legal and strategic.
Also, both customs duties and VAT will change as the import and export of products in the UK will become more expensive, the Romanians will be forced to reduce the flow of trade relations. Exchange rate, labor mobility and Romanian agriculture will be affected by Brexit because Great Britain is the country that contributes most to the EU budget.
In conclusion, although Romania is currently not directly affected by Brexit on long term, it will bear the consequences of those decisions economically and beyond.