Software firms urged to look overseas

SMALL software companies are being urged to do more business overseas and end their reliance on local markets.

ScotlandIS, which represents companies involved in information and communication technologies (ICT), has set up the Export Forum Group to support members that want to expand outside Scotland but do not have the knowledge and expertise.

Polly Purvis, executive director of ScotlandIS, said about 40 per cent of respondents get more than 80 per cent of their business from Scotland alone, according to its most recent survey.

It also revealed that ICT companies are suffering from a reduced demand for their services from the financial services sector in the UK, which has been hit hard by the recession.

Purvis said: "The survey flagged that Scottish ICT companies are too reliant on the UK for business. To survive and grow, businesses need to break into new markets. Even though we are in the midst of a global recession, it's a great time to expand overseas. The weak pound means that our services are more competitive, and many of the barriers to trading internationally have been removed."

To support businesses that want to do more international business, the Export Forum Group will bring together Scottish software companies that have conquered overseas markets to share their knowledge and expertise with firms hoping to break into those countries.

Purvis said that newer international markets, such as the Middle East, China and India, are expected to recover faster than others from the global downturn. Together with traditional export markets, such as the US and Europe, she said emerging economies offer real potential for growth-minded Scottish companies. She added that increasing international sales will equip businesses to better weather any economic storm in the future.