Brexit fallout ‘will test CIOs and their crumbling legacy systems’

KPMG: Vote to leave EU is also an opportunity for CIOs to clean house

CIOs must be prepared for the board to delay or cancel big strategic projects in light of Brexit.

This is according to KPMG's CIO Advisory group, whose Brexit Playbook recommends IT leaders rethink and re-budget projects in light of the UK's vote to leave the EU.

Adam Woodhouse, director of the group, said: "The organisation may delay or even cancel strategic decisions and large funding approvals, so be prepared for this and the implications this could have on technology spend.

"The movement in sterling will also have an effect if you are not hedged against foreign exchange movements, so you will need to re-calculate and possibly re-budget planned projects and business cases, the buying of software, services and hardware and what foreign-based teams might be costing."

Advertisement - Article continues below

However, Woodhouse added that it is crucial the board "fully appreciate the fundamental importance of technology in their overall Brexit response".

It is important that CIOs present the immediate, medium-term and long-term risks of Brexit, he added, with EU staff concerned about their futures and firms reliant on foreign talent unsure of how they will attract them in future.

Meanwhile, the UK will have to adopt similar data protection rules to the EU's incoming GDPR legislation to transfer data into and out of the EU.

It comes after Bank of England governor Mark Carney yesterday warned that unemployment would claim another 250,000 jobs in the next two years, and cut interest rates to 0.25 per cent in response to Brexit.

However, Woodhouse believes there is an opportunity for CIOs to acquire talent and technology on the cheap, as investors cool off as they wait to see how Brexit affects start-ups' access to talent.

"Many funds are sitting on the sidelines while things settle down," said Woodhouse. "Bold CIOs will use this to get a jump on the competition. In particular, foreign investors have a real opportunity with the pound dropping around 10 per cent against both the euro and dollar." 

While he concluded that Brexit creates big challenges for CIOs, Woodhouse said this is an opportunity for them as well.

"The fallout from Brexit will test CIOs and their operations no question," he said. "It will put a strain crumbling systems, expose confused governance and raise questions about the way we have always done things'. That leads me to a blindingly simple conclusion: has there ever been a better time for CIOs to drive out complexity, simplify IT architecture and improve services?" 

Featured Resources

The essential guide to cloud-based backup and disaster recovery

Support business continuity by building a holistic emergency plan

Download now

Trends in modern data protection

A comprehensive view of the data protection landscape

Download now

How do vulnerabilities get into software?

90% of security incidents result from exploits against defects in software

Download now

Delivering the future of work - now

The CIO’s guide to building the unified digital workspace for today’s hybrid and multi-cloud strategies.

Download now



Google confirms Android cameras can be hijacked to spy on you

20 Nov 2019
cyber security

The EU calls for cyber security pact with post-Brexit UK

6 Nov 2019
Careers & training

IT manager job description: What does an IT manager do?

28 Oct 2019
Business strategy

CIO job description: What does a CIO do?

1 Oct 2019

Most Popular

digital transformation

Boston Dynamics dog-like robots sniff out bombs for Massachusetts police

26 Nov 2019
mergers and acquisitions

Xerox to pursue hostile HP takeover after $30bn gambit fails

28 Nov 2018
Google Android

Samsung Galaxy A90 5G review: Simply the best value 5G phone

22 Nov 2019
data breaches

T-Mobile data breach affects more than a million users

25 Nov 2019