Understanding International Accompaniment Companies

International Accompaniment Companies, or IACs for using their acronyms, what exactly are they? What do they offer? What are their differences with institutional actors? These questions about international accompaniment companies are often asked. In these times of restructuring of the public export assistance system, sector stakeholders gathered under the common banner of Team France Export (TFE), the alliance between Business France, Chambers of Commerce, regions, Bpifrance, and international accompaniment companies, are working together to make exports a priority. The partners will work in a network to support French companies internationally. "TFE will offer IACs the opportunity, at both ends of the company's journey from France to foreign markets, to promote their solutions," according to Christophe Lecourtier, CEO of Business France. So what are the peculiarities of international accompaniment companies? Enlightenment.

Who are the international support companies?

International support companies (ISCs) specialize in advising, assisting, and representing small and medium-sized enterprises (SMEs) and intermediate-sized enterprises (ETIs) in their export activities and international development projects. ISCs are also referred to as export support companies.

ISCs share an expertise in local environments and a deep understanding of the culture and business practices in the countries where companies aim to establish themselves. They also have a strong results-oriented culture, making them natural partners for businesses.

There are two types of ISCs: those based only in France and those with offices and teams abroad:

• ISCs based only in France typically provide consultancy and support to business managers or export departments: structuring international strategies, adapting marketing, and transforming the company's organization.
• ISCs based abroad act as the operational arm on the ground for their clients. They serve as "the eyes and ears" of their clients in export markets and represent them. Their role is to ensure the sustainability and profitability of the businesses entrusted to them, always striving to deliver concrete and measurable results.

What do international support companies offer?

International support companies can manage a project from export diagnostics to the establishment of an office or subsidiary abroad.

ISCs support internationally oriented businesses looking to enter new markets. They also work with companies already present in a market but wishing to increase their sales or restructure locally.

For businesses, ISCs facilitate access to international markets. They are involved throughout the international development process.

International support companies are valuable assets for companies looking to export or import. They enable SMEs to more easily approach export markets, providing strategic and operational support tailored to their needs.

"The conquest of international markets requires country-specific skills that are often difficult, costly, and slow to acquire on one's own. Understanding the organization of the target market, selecting the right local partners or employees, structuring the offer in the country, and choosing the appropriate marketing strategy are all aspects that ISCs can provide to their clients, leading to faster market success," adds Etienne Vauchez, President of OSCI, the Operators Specializing in International Trade.

What are the differences between international support companies and public and parapublic service providers?

While complementary to the services offered by public and parapublic entities like Business France and international Chambers of Commerce, ISCs have several unique features that position them distinctly within the "Team France Export" solution:

• Anchoring vs. Initial Engagement: Public services primarily focus on the initial stages, discovery, and first steps in a market, whereas ISCs can offer business development services and go as far as establishing a firm presence in the export markets.
• Integration: It is not uncommon for an ISC consultant to have a business card in the name of the company they represent or to use an email address belonging to the client. They are an integral part of the client's export team.
• Seniority: ISC leaders are often seasoned business people with many years of international experience. Coming predominantly from the private sector, they have business experience at the highest level.
• Business Relationship: ISCs are often stakeholders in the success of the business as they can integrate a variable part of their remuneration linked to sales and thus to the company's growth in exports.
• Duration: ISCs support their clients over the long term, extending far beyond initial engagement. It is not uncommon for a company to use the services of an ISC for one, two, or three years or more.
• Specialization: ISCs have developed specialized expertise over time. Some focus on specific business areas (quality, sourcing, accounting, finance, etc.), while others have developed sector-specific expertise offering strong expertise in various fields.

How to select an international support company?

OSCI, the Operators Specializing in International Trade, is a federation of international trade entrepreneurs. It includes International Support Companies (ISCs) and International Trade Companies (ITCs).

This professional organization represents 150 export support companies and more than 2000 trading companies contributing to over 120 billion Euros in annual exports.

On the OSCI website, www.osci.trade, you can find a list of International Support Companies through a search engine, specifically by their area of expertise, industry sector, and preferred countries.

Membership in OSCI ensures clients receive professionalism recognized by attested references and a business ethics affirmed by the signing of a code of ethics.

What are the costs of working with international support companies?

International support companies provide significant support to businesses in their export or import endeavors. Costs vary depending on the mission proposed and are partially subsidized by Bpifrance (export insurance, export loans, etc.):

• Fees: Remuneration is typically based on hourly rates or per diem for consultancy and assistance services. However, some services can be negotiated on a fixed fee basis, which can be more comfortable for the client.
• Success Fees: ISCs are sometimes paid based on success fees or commissions when the service has a commercial nature. It is also possible to set up result-based bonus schemes in addition to fees.

In any case, the services of ISCs are generally less expensive than hiring a local employee. More than a cost, the return on investment should be considered when deciding to work with an ISC in developing a new market.

Discover how International Support Companies (SAI) can help you succeed internationally