LONDON–(BUSINESS WIRE)–Many UK technology firms are planning forays into overseas markets with
the intention of hiring the best international talent, according to
research* from Velocity
Global, the leading provider of global business expansion solutions.
The findings show that 42% of British tech businesses say their
expansion plans are being driven by a desire to recruit the best global
tech talent, with Europe (37%) and Asia (36%) seen as the most promising
destinations to bring in new skills.
Just 11% view North America as a strong potential market for the right
recruits, with 6% pointing to the Middle East, according to the research.
China, Japan, Hong Kong, India, Germany, France and Spain were among
those named as markets considered the most promising to capitalise on
pools of talented workers outside of the UK.
Just over half (52%) of the businesses surveyed are planning to expand
overseas to grow their customer base, with 43% saying their moves into
new markets are being driven by the economic uncertainty surrounding
Velocity Global surveyed senior decision-makers from 500 UK tech
companies of varying sizes for The
State of Global Expansion 2019 report, revealing a sector of
ambitious businesses looking to uncover growth in foreign markets.
Some 90% of UK tech firms are looking to expand their operations into
new countries, with many planning to do so in the near future. Just
under half (43%) of the companies surveyed operate in the UK only, but
this is expected to fall to just 13% by the end of 2019.
Ben Wright, CEO of Velocity Global, said: “The survey reveals an
ambitious UK tech sector which has the confidence to pursue growth
internationally, with all the benefits that brings.
“Many of them are expanding overseas not just to expand their customer
bases or to address the issue of the UK leaving the EU, but also because
they want to ensure they have a presence in fast-growing markets with
the best people.
“We know that the UK is among the best places in the world to set up a
tech business but there is no escaping the issue of skills shortages. It
appears businesses are thinking creatively, seeking to combine growth in
new markets with the opportunity to hire their brightest talent.”
Although the research revealed confidence and ambition among UK tech
businesses, it also uncovered a cautious outlook among some firms in the
When asked about global expansion, 39% cited managing employee
immigration as a major challenge, ahead of recruitment (36%), managing
unfamiliar payroll processes (26%), communicating with clients over long
distances (23%) and a lack of government support (21%).
Meanwhile, of the 10% of tech businesses that said they were not
planning to expand, more than half (52%) said seeking to expand globally
is too risky.
Ben Wright added: “It’s understandable that some businesses continue to
have reservations about taking those first steps into unfamiliar
overseas markets. Yet more often than not, the myriad opportunities
outweigh the risks. And with the right advice and an expert partner on
hand to simplify processes, it can be hugely rewarding and the route to
To read The State of Global Expansion 2019 report in its entirety,
please visit VelocityGlobal.com.
*Censuswide surveyed 500 US tech businesses (IT, software, hardware and
SaaS) on behalf of Velocity Global in March 2019.
About Velocity Global:
Velocity Global is the leading provider of global employment solutions
that has reinvented the way companies expand overseas. With unrivalled
expertise in over 185 countries, Velocity Global delivers end-to-end
services and best-in-class support to help companies confidently
navigate the entire lifecycle of international business. To ensure a
compliant, efficient, and flexible international expansion, Velocity
Global provides a comprehensive suite of global services that includes
International PEO, Entity Setup and Support, Global Talent Acquisition,
Immigration, and Consulting.