10 tips for finding buyers on the European outsourcing market

This document provides information about how and where to find European buyers for your IT or business process outsourcing (ITO/BPO) services. Important elements are knowing what you can offer and whom to offer it to, having a good online presence and making personal contact.

Note that following these tips does not guarantee you will find buyers. Many other factors can influence your success, such as the number of other suppliers on the market and how competitive your services are in comparison.

1. Anticipate and prepare to conquer the market

The digital transformation has been accelerated by COVID-19. Remote working blurred the distinction between in-house, nearshore, and offshore teams, which opens doors for IT or IT enables outsourcing providers from developing countries.

The threshold for outsourcing has lowered, the digital transformation is moving at full speed, and therefore demand has increased. But how can you find new buyers?

You have to choose a sector to focus on. Think about this sector in light of the pandemic and other current affairs (like the war in Ukraine) and the forecasted impact that has on the sector.

In general, COVID-19 has shown that the chances of finding new buyers are significantly lower during a worldwide pandemic. Outsourcing is a trust-based business and in-person meetings are very important. However, growing demand combined with limited travel options made European buyers more open to online meetings.

2. Define your company and your offer before reaching out to find buyers

Before you can start looking for new buyers, you need to do some serious homework. Clearly define what you offer and formulate the main market research questions. The better your research is, the better your sales and marketing results will be. Research your market using social media channels such as LinkedIn and Instagram. You can also use Google Alerts, which is an automated internet search service that can help you keep track of developments and trends relevant to your business. Results can be sent to you daily by email.

You need to collect, organise and update the sources of information you use for market research. A simple Excel sheet will do. You can, for example, use Evernote to save interesting information for later reading. Also write down a summary of your research findings so you can refer to it later or refine your research for better results.

3. Identify which buyers to target

It is important to segment and identify your target market before initiating contact to avoid wasting time and money on random, ineffective activities. Identifying your target market will help you decide later on how to advertise and make the most of your marketing resources.

The first step is to create your ideal client profile. Refer to online resources offering guides or templates on how to do this.

The next step is to gain a complete picture of what your potential buyer wants and what drives them. Buyers want to know their potential outsourcing provider has their best interests in mind. Therefore, you have to understand their motivations for outsourcing. For example, many European companies are interested in standardising processes to improve process flows for maximum efficiency. Your product or service can contribute to that. Focus on that end goal.

The COVID-19 pandemic left many European companies looking for solutions or alternatives for remote working and automation. If your company can offer such solutions, you need to step up now. Identify how your offer can help companies that are struggling right now. Search for such opportunities on LinkedIn and other social media platforms.

4. Work with a sales agent or other intermediary to find a strategic partner

Experts in the European IT and Business Process outsourcing sector agree that working with a sales representative or a matchmaker is one of the most efficient ways to enter the European market. Because they include personal contacts and one-to-one selling, which have proven to be the most effective.

Many companies from developing countries that are doing business in Europe work with a strategic partner (usually an IT company or consultancy in Europe with an existing client base). Matchmakers and sales representatives can help IT companies in developing countries find a strategic partner. Working with intermediaries has become more important in the COVID-19 crisis, as meeting potential partners in person became very difficult during the pandemic, due to travel restrictions.

The intermediary’s expertise should fit your solutions or vertical market. If you offer search engine optimisation services for the tourism industry, you should look for a person who has worked in a tourism industry in your target market. That person probably knows many companies in the tourism industry of your target market and might be able to introduce you to them.

You can pay a sales representative or matchmaker to find potential customers for your products or services. The main difference between a matchmaker and a sales representative is that a matchmaker only connects you with potential clients and organises meetings (you do the selling). A sales representative also does the selling for you and may eventually also get involved in the projects.

Most IT and IT-related service companies find sales agents or intermediaries through their existing networks or by expanding their networks using various online and offline channels. Making use of diaspora has also proven to be a successful route for many IT or Business Process outsourcing providers from emerging countries.

You must check the size and value (quality) of your potential intermediary’s existing network. A good sales agent or intermediary has a large, existing contact base. Your expenses will rise by having to pay this person, but you will be free to concentrate on your service or product and search for other markets yourself.

Make sure you properly inform your (potential) intermediary about your company. Consultants, for example, speak with many potential customers and are often involved in creating long lists of potential outsourcing providers. The more information they have on your company and the better they understand your capabilities, the more they can spread the word about you.

5. Look for buyers through sector associations

There are several organisations in Europe that focus on the IT or Business Process outsourcing market and its developments. Connecting with these organisations and attending their events will provide you with valuable information and contacts. In some cases, it will also make it easier for European buyers to find you. Follow these associations’ websites, sign up for their newsfeeds and other publications and/or register as a member.

The leading trade organisations for IT and IT-related services outsourcing in Europe are:

Central and Eastern European Outsourcing Association (CEEOA): this organisation aims to be an effective industry knowledge resource, promotional tool and communication channel for service providers. Their website also offers sector best practices, expert information, research findings and innovative solutions from CEE countries.

Deutscher Outsourcing Verband: this is an independent member organisation for the IT outsourcing and business process outsourcing sector. They are a registered association and platform for professionals and organisations involved or interested in sourcing or providing IT and business process services in and/or to German-Speaking (DACH) markets in Europe (DACH: Germany, Austria and Switzerland).

European Business and IT Services (EUBIS): an ITO, BPO and RPA (robotic process automation) industry and events directory.

EBSA: European Business Services Association: a European BPO association that focusses on the Central and Eastern European (CEE) region. They organise events, have a directory of members and publish news and studies on the BPO market.

Global Sourcing Association (GSA): presents itself as the home of the global sourcing standard. Their aim is to build a positive reputation for the strategic sourcing industry.

6. Work on a professional online presence

Buyers no longer wait for companies to introduce themselves. They are looking for you and like to do their own research.

Web searches are very popular among buyers. You can consider your website to be your business card. A website is the first place where buyers will see whether you have a well-established company. If you do not appear in their web searches, or when you have an unprofessional or unfinished website, they may assume that you are not a suitable partner and unable to fulfil their demands.

Treat your website as your most important and valuable marketing asset. Provide enough high-quality information that your prospects can easily find. The first impression your website makes is critical. This means you need a professional, well-maintained website that helps to promote you and is ready for marketing.

Make sure your website is focused less on you, and more on your customers. Try to understand how your potential customers think. What are their wishes and challenges, what information do they need? Also add references from your current or previous clients, which are useful to build trust. Be sure your information is accurate, to the point and up to date. Your website is your extended brochure where potential buyers should be able to find most of the information they are looking for.

When a potential customer is browsing through your website, they need to find a call to action. This is an opportunity to take your visitors a step forward to become a customer. It is the most important part of making a sale. There are many examples of practical, innovative and/or funny calls to action. This wordstream blog and Hootsuite article show some examples to you.

After your website is complete, you have to make it easy for potential buyers to find on the internet. Many people use search engines like Google, Bing or Yahoo to find information online. Buyers will most likely do the same. Your site should therefore be visible for those looking for your specific service. You can also try using Search Engine Optimisation (SEO), which helps you appear higher up in search engine results and so makes you easier for potential buyers to find.   

In addition to having a website, social media are a good tool for promoting your company. People and companies can create and share content and connect with one another (thereby growing their social networks). The most common social media platforms in Europe are Facebook, Instagram, TikTok, YouTube, Twitter and LinkedIn. Unlike the others, LinkedIn is specifically for professional networking.

7. Use your network & make contacts

Your network is potentially one of your most valuable assets for generating new business. The European market for IT and Business Process outsourcing can be best approached through personal contact. One on one and social selling is very important, because it is a trust business. The good news is that the pandemic lowered the threshold for online meetings and doing business online. Your network is a great place to start meeting people (online).

LinkedIn is the most widely used international networking source. The website has groups and discussion pages for all types of industries. Join several of them. Be active, participate in discussions and invite other regular visitors to connect with you. Build your network and make contacts in your target market. The larger your professional network, the bigger the chance you will successfully develop business. Larger is better: while the quality of contacts is important the size and growth of your professional network is equally important.

Invest carefully in Google Ads, advertising on Instagram or Facebook Ads. Test your advertisements before committing large amounts of resources, time and money. Experience shows that using these tools to make connections can be very disappointing.

Cold calling and launching mass email campaigns are among the least efficient ways of promoting your IT or Business Process services in Europe. This type of promotion requires expertise and specific skills. If you want to take this approach and do not have the right people in-house, hire specialists to help you.

8. Attending trade events, fairs and conferences

Today, large general IT trade fairs, are less relevant (many of them, like CeBIT, do not even exist anymore). The scope is too wide, the overlap too small. However, smaller, specialised trade events have become more important. Bear in mind that specialised events are only interesting for companies in that specialised sector.

Be realistic: attending an event (as a visitor, speaker or exhibitor) will probably not result in immediate sales, although it happens sometimes. However, it will give you many opportunities for networking and expanding your professional network. In any case, when you are at a European event, do not aggressively try to sell your services or products. Use a soft approach and focus on making a larger number of high-quality contacts you can follow up on.

Attending carefully selected trade fairs, B2B events and conferences is an excellent way to expand your professional network in Europe. It may also be worthwhile to visit sector-oriented trade fairs on other continents. Besides making contacts at these events, you can also do market research, develop new business ideas and follow up on the latest trends and developments in your specific market segment or technology.

As a result of the COVID-19 pandemic many in-person trade events, fairs and conferences have been cancelled or moved to hybrid or virtual. At the moment, most trade fairs have resumed their businesses. However, most events still have a hybrid option.

If you cannot attend an event in person, you can still make use of the online exhibitor catalogue (of current or past events). These online catalogues have search engines, which you can use to find buyers per product or product group. They offer relevant information such as buyers’ websites and contact details, making them a good starting point to find potential clients or to prepare for a trade fair visit in the future.

9. Participate in the programmes offered by Business Support Organisations

Business support organisations (BSOs) exist to support your business. They can help you with knowledge, contacts, connections and insights that you may not be able to access on your own, or at least not as easily. Many BSOs invest in export promotion and event organisation and participation abroad, including B2B matchmaking, roadshows and conference and trade fair participation.

Furthermore, BSOs often organise trade missions. Organisers of these missions have strong relationships with businesses in your target markets. They can help you identify, screen and meet prospective buyers.

Examples of BSOs that might be relevant for your IT or Business Process Outsourcing are:

Centre for Promotion of Imports from developing countries (CBI): a government-funded organisation that has helped more than 800 entrepreneurs become successful exporters to the European market. They publish market information for various products and services, offer export coaching programmes and technical support, inform and influence policymakers and involve importers in the development and implementation of their programmes.

Swiss Import Promotion Programme (SIPPO): a government-funded organisation that helps BSOs improve their services for export companies and strengthen their own organisational structure, as well as connecting them to an extensive network.

Import Promotion Desk (IPD): a government-funded organisation in Germany that offers long-term, structural promotion for imports of key products and services from selected partner countries. They match German importers with relevant exporters in emerging growth markets. They are also partners with Leverist.de, a platform that connects companies with existing business opportunities in developing countries and emerging economies. On their COVID-19 topic page, companies and development corporations can post specific pandemic-related issues and solutions, enabling companies all over the world to find information and directly connect with relevant professionals.

Enterprise Europe Network (EEN): a network created by the European Commission to help companies marketing a wide range of products and services innovate and grow internationally.

Uganda Export Promotion Board (UEPB): a regional BSO that supports Ugandan companies that sell products or services on the global market, or wish to do so. For example, they organise an export promotion tour, participate in trade fairs and offer trade fair support. Their website also provides market information on various products and services, export guides, market analysis tools and much more.

10. Use company databases and trade directories

Company databases

Company databases can be a resource for finding potential buyers. They may be free, such as company.info, or paid, such as chamber of commerce databases (for example, the Kamer van Koophandel in the Netherlands) and commercial databases like Bold Data. Identify which databases offer you the best prospects and use them to make a list of potential buyers to target.

Trade directories

You can also use trade databases to find potential buyers. Examples are Kompass, and Europages. There are other trade directories available in Europe, but they usually primarily work with trade of tangible products. Which is different from the outsourcing sector, where the products are usually not tangible.

You can also use these directories to present your own products. Some trade directories charge for membership to publish your information or contact other traders. Sometimes, you can use a free trial to start with and then see whether it is worth paying the annual fee.

After your registration, you can either join as a supplier or directly look for buyers. Be selective in the directories that you are using and make sure that you leave a professional impression. Posting randomly on many sites may look cheap and even desperate.

Industry experts indicate that cold calling has always been very difficult in the IT and Business Process outsourcing sector. If you do decide to start cold calling, focus on small and medium-sized enterprises, which industry experts say are the easiest to get in touch with.

Read our documents on Organising your Exports, Doing Business and Buyer Requirements to gain more understanding on how to enter the European market and what it takes to become a successful exporter of IT and Business Process Outsourcing to Europe.

This study was carried out on behalf of CBI by Globally Cool in collaboration with Laszlo Klucs.

Please review our market information disclaimer.