Partner up on overseas opportunities

Guy Armstrong says export and other opportunities abroad should not be ignored

Armstrong: Companies are available that can hold your hand abroad

Cuts in public spending will affect the private sector, so I believe that recovery needs to be export led.

It is true that many traditional European markets have some economic instability to deal with as a result of the recession. The US’s IT sector is yet to recover, and in my opinion the track record of British companies there has not been good.

UK business has not been taking full advantage of the opportunities offered by overseas growth markets, whether for export sales or offshoring operations. Small and mid-size independent service vendors (ISVs) often lack local market knowledge and have issues with lead times, resource availability, credit and payment.

In addition, we are seeing ISVs that already have overseas sales channels wanting to reduce their channel operating costs and make their coverage more flexible. Meanwhile, managed services providers are, I believe, looking at offshore operations in new and innovative ways.

In practical terms, this has meant a focus on opportunities in Brazil, Russia, India and China (BRIC) - but also smaller markets such as Panama and Oman.

Some have been looking at how to integrate a broader range of services and software development by expanding acquired operations.

You must find partners, develop a business plan, train and then continually manage your partners, or you can partner a company that will do that for you. Then going abroad and developing an overseas market might not seem so daunting.

Guy Armstrong is managing director at Delta Channel Services