Articles
Open your eyes when you think of England - Heather Baker, TopLine
INSIGHT ARTICLE
Why local knowledge means success for US companies in Britain
Heather Baker is Director of PR at 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.

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