IT chiefs should consider delaying or cancelling large funding approvals in the wake of Brexit, especially as the value of the pound falls, according to an advisory from KPMG.
The advice comes a day after the Bank of England cut interest rates from 0.5 per cent to 0.25 per cent in a bid to stimulate the economy amid signs of a downturn following the recent vote to leave the EU.
Adam Woodhouse, director of KPMG's CIO advisory panel, explained that CIOs should look at options to "delay or cancel large funding approvals, and the pound's fall may require them to recalculate planned projects, especially where they are buying software, services, hardware or using foreign-based teams".
Woodhouse suggested that the short-, medium- and long-term risks from Brexit need addressing.
"Staff from the EU may feel uneasy about their future. Firms which heavily depend on foreign expertise may be worried about losing those staff or attracting talent from EU countries," he said.
However, Woodhouse was also keen to illustrate that Brexit may not be all bad.
"For many it will pose a significant operational challenge. But for those who can lift their heads from contingency planning and take a more strategic view, it can also present opportunities," he said.
Specifically, Woodhouse believes that Brexit could "offer the investment or acquisition of niche and startup technology innovators" as their "traditional sources of funding may become more cautious".
"Many funds are sitting on the fence until things settle down, allowing bold CIOs to get the jump on the competition and pick up the best of the bunch," he said.
Woodhouse also believes that the UK could be on the verge of becoming a destination for corporates to "near-shore technology skills and digital work" owing to a UK population that has as many highly skilled digital professionals, including scientists and cyber security specialists, as anywhere in Europe.
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