Superstructure is building international framework

New Zealand IT companies tackling offshore markets must collaborate more to compete against much larger international rivals, says fast-rising Wellington software company Superstructure Group.

Superstructure, which was formed this year from the merger of Superstructure Development and Upshot Technologies, is pushing three products overseas: an aviation safety management system called AQD; a security, intelligence and investigation product called SiD; and a text mining and analytics product called the Mole.

AQD is the world's No 2 player in the international market for aviation safety management systems, but the company's Asia Pacific regional manager, Ted Thomas, says that will soon change. "Were going after our competitor in a fairly aggressive sort of manner."

The 20-year software industry veteran said the main reason for the merger of Superstructure Development and Upshot Technologies was to achieve "critical mass for what they were doing offshore".

"The crux of what we were doing was to bring more management and sales and marketing capability into the two businesses."

Superstructure established an office in the UK with the help of New Zealand Trade and Enterprise as part of their UK Beachhead programme.

Superstructure's London office comprises three staff, including a new British chief executive with experience in growing software companies from a low base. Superstructure also recruited their major rival's former product developer.

Last year the company, which is owned by about 40 predominantly New Zealand shareholders, turned over about $2.6 million. This year it's targeting about $5 million.

Thomas' experience in international business has convinced him New Zealand IT companies looking to crack offshore markets could benefit by sharing back-office functions.

"We're all running our own HR, financials, sales and marketing and support operations. We're replicating that over lots of businesses so there must be huge economies of scale that can be extracted out of that."

He acknowledges the requirements of IT companies would differ depending on their products and target markets but "some of the other fundamentals - some of those more operational things - they're absolutely the same".