Ibec programme helps companies to drum up business abroad, writes Gabrielle Monaghan

Small Irish companies that can't spare the staff to explore new foreign markets can build up an export business cheaply by tapping into the talents of graduates with language skills on Ibec's export orientation programme.

The novel programme, run by the employers' body, can enable firms to capture their slice of Ireland's €80 billion export market by taking on a graduate on a training placement and then sending them to a foreign market for at least six months to generate sales in the country's native language.

Enterprise Ireland pays for half the cost of the project.

"You can buy goods and services in any language, but to sell something, you need to speak the target country's language," said Nicola Horgan, director of the Ibec programme.

Irish exporters have traditionally fared better in English-speaking markets such as Britain and the US than in foreign-language countries. However, 75 per cent of the world's population doesn't speak any English, leaving Irish companies which stick to English-speaking markets out in the cold.

Indeed, domestic firms that don't value language skills are losing out on export opportunities, according to a report issued last year by the Government's expert group on future skills needs.

Irish exports to countries outside the European Union were worth almost €15 billion in 2003, Central Statistics Office figures show.

There is a distinct link between linguistic skills and export success, according to evidence from a number of international surveys examined by the Government expert group. That's because a company that can interact with potential customers in their native language will automatically hold a competitive edge over those who cannot communicate with foreign clients.

Yet only 27 per cent of Irish companies employing fewer than 10 people have language skills, though that proportion rises to 67 per cent for firms with 100 to 250 employees, a 2002 report co-funded by the European Commission showed.

Ibec's programme places graduates, usually with foreign languages, with companies ranging from small family businesses to multinationals such as Diageo.

Other companies that have taken part in the programme include H&K International, which makes stainless steel for Ikea and McDonald's, Agra Trading, and Kepak Group.

Alphyra Ireland sent one graduate to the Caribbean to promote their electronic payment system throughout the islands, while Kepak took on as many as 12 graduates last year.

About 40 per cent of the programme's graduates now work outside the EU, compared to 2003, when all placements were within Europe, according to Ms Horgan. Ibec expects to place 100 graduates with Irish companies this year, up from less than 70 in 2005. About 30-35 companies sign up to the programme every year.

"More and more companies are getting involved, especially in the small and medium-sized enterprise sector, because it's of huge importance to them," Horgan said. "If you only have three people working for you, having another working in, say, France or Spain makes a big difference to the business."

A placement in Europe costs the sponsor company €9,000 for a year, while a placement anywhere in the rest of the world costs €12,000.

Enterprise Ireland, which approves "99 per cent" of company applications for the programme, pays the same amount again to make up the graduate's salary, Horgan said.

Companies also pay for flights and accommodation.

"The average graduate won't get out of bed for less than €25,000, but the cost to the company works out almost one-third cheaper than if they sent an employee of their own abroad," Horgan said. "There's huge competition to get on to the programme, so employers know that the graduates are dying to work for them."

The programme also gives companies the benefits of employing qualified staff with foreign experience once their graduates have returned from their placement abroad. About 86 per cent of graduates remain at the company that gave them their placement.

Indeed, former graduates who went on to set up their own business in the 1980s and 1990s have often looked to the programme to recruit staff, Horgan said.

Ibec receives more than 1,000 applications for the programme from college and university students each year, and then selects the best 200. As many as 600 applicants are interviewed before they sit their final exams.

The employers' body chooses graduates based on their entrepreneurial skills, extra-curricular activities, work experience and language skills.

"It doesn't matter where the graduate has worked - it's what they've done with the work that matters, and how they have added to their college experience," Horgan said. "We had one girl who was meek and mild-mannered during the interview, but we found out she had set up a stall across the road from a farmer when she was 16 and sold strawberries one year and potatoes the next. She didn't perceive that to be important because it wasn't an office job."