Communitech launches Outposts program to help Canadian companies expand internationally

Waterloo-based accelerator Communitech has launched a new service to help Canadian companies succeed abroad. Starting in November, the Outposts program aims to enable scaling tech companies to enter new markets more quickly and easily by handling the complexities and headaches of international hiring, such as payroll benefits and tax filing services. In short, international workers hired through the program will see Outposts on their pay stubs and the participating Canadian company on their business cards.

"We want it to be as easy to hire an international employee as it is to hire a person in Canada," says Steve Currie, Communitech's chief marketing officer, in conversation with RE$EARCH MONEY. "[The Outposts program] is removing the barriers to doing business internationally and allowing the companies to focus on growing their business rather than getting bogged down in red tape and back-office administrative duties."

Outposts does the work of creating virtual legal entities in other countries, thereby enabling participating Canadian companies to leapfrog a massive hurdle in foreign hiring. It can take up to a year for companies to independently establish operations in a foreign market; with Outposts, they can get up and running with sales personnel in less than a week, says Currie. Time-to-market is an essential metric for tech companies, so rapid, barrier-free access to international markets provides a much-needed edge, Currie adds. Other benefits include risk mitigation and cost savings for smaller companies that may lack the resources to enter foreign markets on their own.

Communitech originally planned to make the program available to its member companies, but received more than 75 inquires within the first week of its announcement. "We quickly understood the scale of the opportunity and that this is a pain point for a number of Canadian companies," says Currie. "Our intent is to make this available to any Canadian company ... from any industry that would be interested in going international in this manner." Currie expects that as many as a hundred Canadian companies could join the program within six months.

Communitech also anticipates working closely with the government departments and agencies like Trade Commissioner Service, Export Development Canada and the Business Development Bank of Canada, in order to coordinate with the programs that they offer. Outposts is currently establishing its beachhead program in the US and the UK, and is working to expand to all the G7 countries within the next few months, and all G20 countries within 15 months.

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