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Open your eyes when you think of England Why local knowledge means success for US companies in Britain By Heather Baker, Director of PR, TopLine Communications
A recent survey conducted at an IT trade show in Birmingham, England, revealed that American
IT vendors looking to break into the UK market should make local partnerships, if their
international expansion strategies are to be successful. 64% of the resellers and end users
surveyed said that vendors should be focussing on local market knowledge and partnerships.
The research, carried out by TopLine Communications, leading British PR supplier to IT,
finance, HR and education companies, highlighted the importance of local knowledge, tailoring
key messages to suit the new market, and ensuring that the business is seen as committed to
Britain.
“The last year has seen a noticeable increase in the number of US IT companies targeting the
UK market,” commented Andy Williams, an international trade adviser with the US Commercial
Service at the American Embassy in London. “This is partly because they are trying to broaden
their horizons as things look tough on the ground and investors are pushing for global growth.
But now is also a good time to be launching in the UK, where the market is open to finding out
about innovative IT products and services.”
In fact, technology companies not looking to go British are missing out - on this side of the
Atlantic, there is genuine interest in the innovations of world-leading US software firms.
However, the British business or consumer is initially hesitant to be the first to adopt. Rather,
they are keen to see how a foreign product fares in the market before signing up themselves.
This is where the value of regional partnerships becomes particularly evident. At a basic level,
introductory meetings set up by trusted members of a local network have far more productive
outcomes than cold calls. And more subtly, British buyers need to be reassured that the
company is here to stay - a friendly face in their own area is crucial to this. In addition, a local
partner will be able to advise on processes that need to be put in place for a successful
business launch. These include setting up helplines on +44 numbers (so clients aren't paying
the earth to contact your support team), that are in operation during UK working hours, or
ensuring that the software is configured to manage pounds rather than dollars.
A further issue that needs to be addressed is data protection - a grey area that frequently
results in unexpected barriers for software firms that have made the leap. British laws governing
international transfer of data require adequate safeguards to exist in the host country. An
American firm needs to comply with Safe Harbour laws (under the Safe Harbour agreement
between the US and the European Commission) and follow the principles.
According to Alan Whitford, Founding Partner at Recruitment Community Europe, who has
written a white paper on data protection, “There's a common misconception in the British
Business Community that data needs to be stored on home soil, or at least within Europe.
However, this is simply not true. When it comes to Software as a Service, the data is owned by
the client, who is ultimately responsible for allowing access. However, the vendor has to ensure
that it is housed in a secure database and backed up regularly. This is an essential message for
US software firms to communicate to prospects here.”
The UK market is a potential goldmine for US IT firms.. But in order to exploit opportunities and
turn them into profitable business relationships, good local contacts with knowledge of how to
communicate with, and reach out to English customers effectively, is key.
