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International

Ip-label, a company with a resolutely international outlook

Expert opinion International
6 Feb 2017
0 minutes reading

International expansion: a must for companies in niche sectors

For over 15 years, ip-label’s core business has been measuring end-to-end quality of user experience (QoE). Ip-label offers software solutions as well as auditing and consulting services, with a universal approach to application environments (web, business, voice and video).

In contrast to the traditional approach of measuring the technical parameters of each component, IP Label focuses on the quality of the user experience:

  • Control the availability and reliability of critical customer paths, step by step;
  • To assess the application’s performance, as perceived by the customer: response time for a web or business application, loading time for a video, acoustic quality for telephony, and so on.

This approach, which focuses on the cross-sectional view as perceived by the user, complements the technical approach based on QoS. It is thus possible to correlate “user” QoS indicators with technical indicators. Such correlation can be carried out on network frameworks and QoS datawarehouse solutions, guaranteeing maximum integration and consistency in service measurement and monitoring.

Operating in a niche sector, France is not a sufficient market for ip-label’s development. International expansion has therefore always been an obvious priority in the company’s growth strategy. The company now generates a third of its sales (€11.5 million) from exports, and employs 24 of its 84-strong workforce abroad. Ip-label was also the overall winner of the “Trophées de l’international des leaders du numérique” awards for innovative SMEs with real international potential.

From European proximity to the Asian open sea

However, few countries are sufficiently mature on the subject of quality and digital, and in the face of strong competition from the United States, it was important to first establish our business in Europe and avoid head-on confrontation in North America.

As early as 2004, ip-label set its sights on the international market, starting with Belgium, which had the advantage of accessibility and a certain cultural proximity. The opening of a sales office in Brussels in 2005 confirmed this choice. This was followed by the opening of sales offices in Madrid and Amsterdam in 2006. The year 2007 was marked by the company’s decision to go global, with the opening of two subsidiaries in Asia (Hong Kong and Shanghai) headed by Christophe Depeux, the company’s current managing director.

In addition to these new sites (organic growth), Mr. Varszegi emphasizes the importance of external growth to the company’s international success. Indeed, through successive company takeovers (Auditec in 2008, giving ip-label access to a distribution network in 10 countries, including the United States, and SiteScanner in 2011, with operations in Sweden and Finland), ip-label has been able to strengthen its leadership position in Europe.

This development policy continued in 2012 with the opening of a new subsidiary in Norway, a sales office in Beijing and the installation of two young sales representatives with partners in Germany.

Now present directly in 8 countries and indirectly in 15 others, ip-label now has a truly international dimension, and is looking to new targets: the Gulf States and South America, with a forthcoming move into Chile.

The classic route taken by an SME into the international arena, through the maze of structures and mechanisms dedicated to export.

To achieve this development, ip-label has benefited from numerous direct and indirect subsidies:

  • Coface prospecting insurance (Benelux, then Spain, then China and finally Germany)
  • Export tax credit for Belgium
  • Missions carried out by Ubifrance, particularly in China
  • Temporary accommodation solutions (Business Centers) by the French Chamber of Commerce and Industry in China, Amsterdam and now Oslo, Norway.
  • The Pm’Up program from the Ile de France region (€90k), mainly focused on the company’s international strategy.
  • (…)

Mr. Varszegi particularly welcomes the Volontaires Internationales en Entreprise (VIE) scheme, which enables French companies to entrust a young person up to the age of 28 with a professional assignment abroad for a flexible period of 6 to 24 months, at low cost. Since its creation, IP Label has recruited 10 VIEs, 5 of whom were hired at the end of the contract, and 2 of whom are currently in post.

Improving support for international business: Simplifying and making it easier for SMEs to set up in France

While Mr. Varszegi is delighted to have been able to benefit from these numerous schemes, he does wonder about the multiplicity of structures and aids for the internationalization of companies. Simplification is essential. Mr. Varszegi supports the idea of creating a one-stop shop dedicated to export, which would avoid duplication, pool resources and save SMEs precious time.

Moreover, ip-label regrets the absence or weakness of direct subsidies. It therefore advocates the renovation of the Export Tax Credit (currently limited to a single destination and capped at 40 k€), and the introduction of O-rate loans, with additional benefits for deserving companies with a long-term commitment to success.

Finally, Mr. Varszegi notes the weakness of existing mechanisms for providing concrete, operational and long-term support to digital SMEs. For example, the creation of a network of French incubators abroad, known as “French Digital Houses”, would facilitate the export of digital SMEs over the long term.