Gartner Research

How Buyers of IT Services Can Plan for Brexit Uncertainty

Published: 29 March 2017

ID: G00327037

Analyst(s): David Groombridge, Neil Barton

Summary

The U.K. formally initiated its departure from the EU on 29 March 2017, creating uncertainty in global IT services until at least 2019. Sourcing and vendor management leaders must prepare for both best- and worst-case scenarios in the U.K. as well as in other countries.

Table Of Contents
  • Impacts

Analysis

Impacts and Recommendations

  • Exiting the EU could change how products and services are imported into and exported out of the U.K., making it more difficult for sourcing and vendor management leaders to use global delivery for IT services
  • The unpredictability of the U.K.'s post-Brexit regulatory environment will require sourcing and vendor management leaders to manage increased risks when signing new multiyear IT service contracts
  • Existing multiyear contracts will restrict the ability of sourcing and vendor management leaders to manage the risk that Brexit might cause labor shortages and rising costs

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