Brexit hit us 10 days ago. Every day the media runs rife with concerns about everything– from the pound, the current account deficit and inflation to long queues for British travellers at EU airports to name a few!
It is certain that the impact of Brexit on the market will not be a trivial one. No EU state has ever before applied to withdraw from the union and clearly a lot of disappointment and anger hangs over the continent.
However, amidst all the market panic and noise, being focused is key!
It is a time of political and economic uncertainty. Article 50 has not been triggered yet, and the estimated timeline of September – October is just a possibility at the moment. Then it will take 2 years or so to legally exit the EU.
New trade negotiations need to be made and David Cameron has made it clear that it is a job for the next prime minister. The impact of Brexit will depend on how good a deal Britain strikes with the EU in terms of trade arrangements and business negotiations.
‘ Surely, I can’t wait until then, I need to amend my business strategy!!?’ – we hear you think. Yes, because of Brexit, UK businesses will face risks and also are given opportunities!
We expect private sector outsourcing to be “standstill” as the private businesses closely watch market conditions before they make big decisions.
UK public outsourcing will continue to use EU procurement principles for the next 2 years (until we legally exit) so it will be business as usual for public bodies.
Whether UK will draft its own public procurement processes and will it be vastly different to current EU laws is a guess work! Let’s leave it to the experts, the influencers and the lobbyists!
After all, amidst all the nervousness and excitement, it is crucial to make decisions that will serve you in the long term.
At Baachu, we have been advising our clients to sit tight and hold their horses. There is no precedent to Brexit, which can provide the market data to forecast, make sensible and valid risk evaluations. Past data as they say is no guarantee for future results!
Yes, we foresee restructuring of many service providers in the coming months!
We are busy helping our clients to strengthen their market position – by reviewing their strategic account planning, pipeline opportunities, efficiency projects, pricing and revenue strategy.
Yes we are facing uncertainity! Our advice to both providers and buyers – Use this as opportunity to become Lean, Agile and more connected with your clients, partners, suppliers and your team.
Lets work together to improve successful procurements and relationships.
And as ever, if you would like to discuss this more, we would love to hear from you. Please do send feedback or comments to us at firstname.lastname@example.org