Brexit poses a significant IT challenge for private companies and the UK government. With all challenges, however, come opportunities and Hiberus have started to operate delivery models to help alleviate the IT talent-related problems of UK leaving the EU. There is widespread belief that due to already existing talent shortages, the cost of acquiring and maintaining a skilled technology team will increase, and for this reason, the Hiberus UK arm will focus on a business model based on nearshore service delivery whereby skilled professionals in Spain will work remotely for UK clients.
Sergio López, CEO of Hiberus states, "In recent years we have managed to adapt to the complicated state of the Spanish market through a flexible service model based on the generation of value, which has allowed us to differentiate ourselves from our competitors. Thus, we have managed to serve clients both inside and outside Spain. The challenge of internationalization is a key and necessary strategic step to continue our level of growth,".
In the UK, while Brexit poses challenges, it also offers enormous opportunities for the government to learn new models of how to accelerate and scale-up the digital transformation within numerous departments.
In 2017, Hiberus Technology's UK subsidiary was created. In the same year, the Henneo Group, of which Hiberus is a member, was formed. The UK arm was established and is currently run by Cecil Adjalo, a technology consultant with wide experience in the market who previously worked for two of the Big Four consultancies. Setting up the business in a lean and efficient way has allowed Hiberus to pass cost savings directly to clients.
Hiberus believe that Brexit will be accompanied by a leakage of talent from the UK to mainly the rest of Europe hence reducing supply and as a result causing a UK wage increase. In the year ending September 2017, 130,000 people left the UK – the highest level since 2008, according to the ONS.The number of EU nationals coming to the UK for work has also fallen, dropping to 220,000 in the year ending September 2017. This spells a worsening situation for tech talent.
A large degree of the problem affecting the IT industry today lies in the severe lack of talent and qualified professionals in niche and modern technologies. At Hiberus, we have managed to overcome this problem by creating our own attraction, training and education centre to equip our people with the tools they need to perform excellent work for our clients now and in the future.
During the next two years, Hiberus will establish itself as a recognised software and technology services provider in the UK. One important step in doing this has been to become an approved provider of the UK government. Hiberus have successfully applied to provide 13 different services to UK public institutions via the G-Cloud 10 Framework. G-Cloud provides a safe platform for cloud services-based IT providers to work with the government. Hiberus are accustomed to running large projects in the public sector through numerous projects with the Government of Aragon, the Government of Navarra and the Community of Madrid. Serving the public sector is a massive strength for Hiberus and the extensive experience developed will be applied in the UK. Our operations will mainly be carried out from Zaragoza (Spain), where our headquarters are located. For many, Zaragoza is a city where the high standard of living and low costs give people an opportunity to enjoy the quality of life they desire strongly. Zaragoza’s strategic location between the two most important cities in Spain, Madrid and Barcelona enables business to be carried out easily.
Hiberus has pledged to offer a variety of service offerings to cover the needs of multiple different government institutions. The application window for G-Cloud 10 was opened on the 18th April 2018 with the deadline of 23rd May 2018. The results of the application process were announced on the 18th June 2018, with the go-live date beginning on the 2nd July 2018.
Hiberus has focused on offering a core set of foundation services on G-Cloud as well as some specific solutions. The offering includes software factory, business intelligence, data & analytics, and application management services. Technology based services focus on digital eCommerce solutions and content management systems (such as Hybris, Magento, Oracle ATG, WordPress, Drupal) as well as CRM and intranet solutions like SharePoint, CRM Dynamics and Liferay. Specialised solutions are an integrated ticketing & access control solution (IACPOS) and an integrated management system for reverse logistics (GISIR). Finally, one of Hiberus' main business areas, development and outsourcing, a tailor-made management model adapted to client needs, has also been included.
On G-cloud 10, there are 3,505 suppliers listed on the framework, most of which are SMEs. Last year, 48% of total sales through the framework were allocated to small IT providers. According to figures published jointly by the Government's Digital Service in early February 2018, more than £2.8 billion of cloud services have been purchased through the framework since its launch.
Hiberus Tecnología is an IT consulting company that provides business and technology services
Hiberus drives progress through the right solutions, helping all businesses adapt to new technologies and best practice. It is one of the leading European technology consulting companies with offices in Spain, UK, North and South America. Hiberus has a wide range of business solutions and 17 specialised technology areas. It is considered one of the most successful companies in the Ebro Valley (Spain), due to its rapid growth, numerous awards, and track record for innovation. The specialities covered include Business consulting, Solution Implementation, AMS, Software Factory, BPO (Business Process Outsourcing), Managed Services and System Integration. Hiberus is a part of the Henneo Group, which employs over 1,000 people and generates €100M yearly turnover.
London, Thursday 11th November 2017
Formed in 2012, Hiberus Tecnología is established in Spain as a leading company in the technology consulting sector. The UK Director for Hiberus, a former consultant for Accenture, EY, and Slalom, Cecil Adjalo, has expressed that there is a shortage of great technology talent in the UK. He states, "The tech sector has an incessant barrage of new software and hardware that is cheaper, faster and easier to use. Companies and institutions are not training people fast enough to use these new technologies and we are increasingly relying on imported talent to accomplish our aspirations". One in six new hires between 2009 and 2015 in the tech sector were EU citizens, according to techUK. Although it is not yet understand the full implications that Brexit will have, there is widespread belief that the technology talent coming from Europe will be negatively affected.
Hiberus UK will enable clients in the UK to use the swelling talent in Spain to completely change their models of project delivery whilst promoting innovation, maintaining quality and slashing costs
Sergio López, the CEO at Hiberus Tecnología is similarly optimistic about the UK market. Post-Brexit may see increased cost of technology talent and this is why Hiberus UK presents a great opportunity to improve a company's ability to evolve despite the challenges.
We are able to see opportunities where others see problems, in fact our rapid growth has taken place during the Spanish recession, therefore Brexit should not be a problem but a challenge for British businesses to grow in a more competitive market
“In recent years we have managed to adapt to the complicated states of markets through a service model based on a value chain and a flexible structure, which has allowed us to differentiate ourselves from our competitors. We managed to bring products and services both inside and outside of Spain.The challenge of internationalization is a key strategic step and necessary to continue with our level of growth”, says Sergio López. "Our motto, “As fast as a start-up and as reliable as a multinational”, communicates our core essence that differentiates us from the big consulting corporations. Hiberus is tremendously flexible and accomplishes the most challenging and tedious projects."
The Deloitte 2016 Global Sourcing Survey found that "Companies are broadening their approach to outsourcing as they begin to view it as more than a simple cost-cutting play". Companies are looking to gain advantages in innovation with their technology suppliers. A 2015 survey by techUK found 94% of techUK members were positive about the sector’s potential for growth over the next two years. The biggest driver for optimism was a customer base across the public and private sector focused on innovation (89%) which drives the market for their products and services". This continues to be the case as we head into the unknowns of 2018 and companies like Hiberus will offer a bolstering advantage to their UK clients.