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UK Business Software Vs Globally Sourced - What Are the Risks of Buying Non UK Business Software

There are many owners of small businesses that buy software from abroad each year. The growth of the internet has meant that software packages are becoming widely viewed by a global audience. There are some great advantages to why you would consider buying some business software from abroad. But unfortunately there are also some very high risks to buying software from abroad. We are not here to say buying software from abroad is bad - far from it. We just feel that people should go into the buying decision knowing all of the risks involved. This article aims to explore the considerations and information required to provide you with the information to make the right decision for your business.

Main considerations when UK business software vs. globally sourced technology

1) Regulatory

First and foremost the product you buy must comply with the laws of the land. When you consider buying accounting or CRM software it is imperative that the chosen supplier understands the UK market. This is clearly pertinent within the accounting software industry. It is crucial that any accounting software that is purchased keeps up to date with UK laws in order to keep the administration of annual returns to a minimum. If you choose to buy a package sourced outside the UK the software may be designed to satisfy the returns and administration of a foreign jurisdiction. Business software made in the UK will mostly be tailor made to ensure that all returns and related administration is related to the standards set by the UK government. Having software that is aligned to UK law prevents you from having to spend unnecessary time amending annual returns allowing more time to be spent on driving value for your business.

2) Financial

There are financial advantages and disadvantages to be considered when buying software from non UK sources. It is possible to get very good value exchange rate opportunities when buying non UK software if buying software for an upfront fee. However, it is important to consider when buying software on a monthly tariff that exchange rates fluctuate and what starts off as a very cost effective solution can become very expensive if the exchange rates take a turn for the worse. Buying a software solution from the UK removes the risk of the risk of having fluctuations in international exchange rates.

3) Cultural