The position of the current UK government led by Boris Johnson is known, and one can predict that the economy will face challenges to recover from a down cycle provoked by Brexit. The technological impact on the long-run GDP will not support the output in the short-term, due to the policies to be introduced. Technology in advanced economies is essential to improve the output, when countries get richer the source of the economic growth shifts from capital accumulated to TFP improvements. The UK economy will potentially reach a steady-state in the short term if a no-deal is the exit path of the EU. The economy depends on labour, capital stock and TFP, where policies that do not retain the right talent will not allow the necessary technological progress on the long-run. The labour that may enable to redefine the steady-state along the time will be expelled of the UK in the current scenario. The importance of human capital in economies can be observed through the continued investment in educational institutions, helping to achieve long-term growth. But the UK needs additional labour to respond to the already existing demands of high qualified labour.
History plays an important role to understand how alliances can play a role in modern history. The established Anglo-Portuguese alliance in the XIV century is one of the oldest in the world. This English alliance will undoubtedly play an essential role in Brexit and support the TFP and the required technological advancements.
Portugal will play an important role in the short-term, currently offers the best in class engineering institutions, and has become a European technological reference hosting since 2016 Web Summit. All the young population speaks English, and the optimism in the country is contagious cross sectors, mainly in the technological one. Portugal Nearshore IT services will become a piece in solving the economic puzzle of the UK by answering with the highly qualified expats that the UK will require.
Nearshore IT Services will be a tool to leverage in supporting IT requirements through dedicated software teams, that deliver IT solutions remotely with affordable and efficient solutions. This solution will certainly be appealing since Portugal offers access to the best, experienced talent with language & cultural similarities.