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Channel can't pitch business as usual post-Brexit

Now might be the time for customer's to change strategy and do something different, according to KPMG

The results of the EU referendum have had a few weeks to become apparent and those customers that have opted to sit on their hands and pause investment decisions have been warned they might be making a mistake.

Although it might be a human reaction to delay spending given the drop in the value of Sterling and the movement in interest rates KPMG has offered some advice to CIOs to be proactive and exploit the current situation.

One of the dangers of pausing investments is the competitive edge might slip to rivals but there are also other moves that firms could be making that will shore up their business and could have implications for the channel.

Adam Woodhouse, director in KPMG's CIO advisory practice, said that there could be significant opportunities for some firms to change their strategy.

"For those who can lift their heads from contingency planning and take a more strategic view, it can also present opportunities. In particular, the Brexit vote could offer the investment or acquisition of niche and start-up technology innovators – as their traditional sources of funding may become more cautious," he said.

Resellers should be aware that some users will be reviewing their options and just pitching things as business as usual might not be a good approach.

"Brexit is a catalyst for change as it will force CIOs to look at their systems, governance and tackle the ‘this is the way we’ve always done things’ mentality. What better time to drive out complexity, simplify IT architecture and improve services?" asked Woodhouse.

"Although most in the business community did not want the referendum to go the way it did, Brexit could be the thing that delivers their proudest legacy," he added.

Another area where KPMG thought those with a positive mindset could benefit is in the hiring of IT professionals as the country would still remain a hub attracting talent.

There are real worries about skills shortages and plenty are happy to give some advice with Annodata pointing out that using the cloud and turning to managed service providers could be the answer.

“Issues affecting talent need to remain at the forefront of CIOs’ minds to ensure that they are best prepared for the challenges ahead. Cloud in itself isn’t going to solve the skills shortage but it can free up time, energy and resources to focus on what really matters – running the business," said Rod Tonna-Barthet, CEO of Annodata.

“CIOs should be focusing their efforts on skilled members of staff who can support their core business objectives, and outsourcing more mundane operational tasks, like infrastructure management, to trusted third parties," he added.

The KPMG advice comes just a day after the Bank of England cut interest rates and at a time when a fair few of the economy indicators are pointing to the UK suffering a mini-recession.

 

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