Allies: Scaling without borders

Being born in Estonia gave us a unique advantage: Internationalization was never optional—it was a necessity.

Estonian clients have never made up more than 10% of our revenue, which meant we had to expand early.

In 2020, we evaluated Finland and the Netherlands as our first international markets. Finland “won” due to its accessibility and market size, making it a manageable first step. Four years later, in 2024, we expanded to Amsterdam to be closer to our European and US-based customers.

(Read more about our Netherlands expansion here).

We are a truly international company, with operations, clients, and engineers spanning multiple countries:

• Clients: Finland, Germany, Estonia, and most recently, North America.
• Operational team: Estonia, Finland, Sweden, and the Netherlands.
• Engineering hubs: Primarily in Poland, but also in Romania, Latvia, Estonia, and Finland.

• 2020-22: Established credibility in Finland, partnering with Gofore on a strategic OECD framework agreement.
  (Read more here).
• 2023: Joined the Fusion Ecosystem, a major step in expanding our reach.
  (Read more here).
• 2024: Launched our first Hub-as-a-Service project and opened our Amsterdam office.
  (Read more here).

Expanding into new markets is never a simple task—it requires careful planning, strong partnerships, and a deep understanding of local dynamics. At Allies, our approach to internationalization has evolved over time, but one thing remains constant: trust is the foundation of every successful market entry.

When we first expanded into Finland, we followed a structured market entry playbook. The strategy was simple but effective:

1. Engage with larger software consulting companies.
2. Become their trusted delivery partner to gain exposure to high-profile projects.
3. Execute expertly, build a strong track record, and establish credibility.
4. Join Fusion, a leading network of technology firms, to deepen our market presence.
5. Adjust our business model to sell directly to end customers.
6. Gradually shift from relying on partnerships to securing direct customer contracts while still maintaining strategic collaborations.

This approach allowed us to gain traction in a competitive landscape and establish Allies as a trusted player in Finland’s software industry.

Today, as a more mature company with strong references and a sharper market focus, our new market entry strategy has become more efficient—we can often bypass or accelerate some of these steps. However, leveraging networks and partnerships remains a crucial component of our playbook.

Our initial go-to-market efforts in Finland were rooted in extensive research. We conducted dozens of interviews with potential customers to understand where we could position ourselves in the software development supply chain. To ensure we were asking the right questions, we brought in a local market expert who helped us refine our value proposition and ideal customer profile (ICP).

Interestingly, many of these early interviewees later became our first customers—and remain our customers to this day. The key to these conversations was transparency; we made it clear that these were not sales calls but exploratory discussions. The interest in doing business came naturally from the customer side. Signing those first agreements is still a proud and memorable milestone for us.

“Beyond research, partnerships played a pivotal role in our success.”

Our growth in Finland was accelerated by collaborations with well-established players like Reaktor, Fusion, Digia, Gofore, Solteq, Solita, and Siili, who trusted us with complex and high-stakes projects. These partnerships helped us gain credibility, expand our reach, and build lasting customer relationships.

In our early days, we were outsiders in the Finnish market. In an industry where trust is everything, selling software services without an established local presence was a challenge.

One of our most unconventional yet effective moves was hiring a retired industry veteran with decades of experience in Finland’s software services sector. He acted as a sales agent, introducing Allies to his ex-colleagues, friends, and any industry professional willing to listen. His role was not to push sales but simply to open doors and foster trust.

These introductions led to some of our most valuable business relationships—many of which are still thriving today.

“In true Finnish business culture, much of the sales happened not just through calls and emails, but during hunting trips.”

In 2022, some of our most significant deals were initiated while tracking game in the Finnish wilderness, proving that the best business sometimes happens far from the office.

Our biggest hurdles were;

• Lack of local credibility: As a foreign company, we had no established reputation.
• No existing customer base: We had to start from scratch, unlike local competitors.

We tackled internationalization by building trust through partnerships rather than pursuing direct sales immediately. Leveraging personal networks and introductions from industry veterans proved invaluable in establishing credibility. Our focus was on delivering niche expertise that local competitors lacked, allowing us to differentiate ourselves in new markets. Along the way, we learned key trade-offs:

“You can win a small part of a big customer or a big part of a small customer, but rarely both.”

Success required adapting our value proposition to fit the market rather than expecting the market to conform to us. Most importantly, we prioritized partnerships as a foundation for growth before expecting direct sales.

While our approach continues to evolve, a few key principles remain central to our internationalization strategy. Here are some key learnings and takeaways.

• Internationalization is easier if it’s in your company’s DNA. We built Allies to solve complex, high-tech challenges, which naturally led us to global clients.
• Focus on a niche that local competitors don’t have. Our specialization is hard-to-find skill in difficult industries that local firms can’t match.
• The EU is a single talent market. We access niche talent pockets that many local players cannot reach.
• Trust comes first. Before attempting direct sales, we focus on building credibility through partnerships.
• Market research is invaluable. Understanding the local business landscape through conversations with industry experts is essential.
• Unique approaches make a difference. Whether through hunting trips or tapping into personal networks, unconventional methods can open unexpected doors.
• Trade-offs are unavoidable. We must choose between securing a small share of a large customer or taking a leading role with a smaller one, but rarely both. Our strategy adapts accordingly, ensuring we maximize each market opportunity.

As we continue to expand into new markets, these lessons guide our journey. Each market is unique, but the importance of trust, partnerships, and adaptability remains universal.

• 2025 – The Year of Hubs—we aim to build many new talent hubs for our customers.
• We’re looking more towards North America where we have our first customer cases running since 2024.

“Building Allies has been a journey of constant firsts. Sometimes things may be developing painfully slow, but we’ve seen that the egg eventually always cracks. This is what keeps the team going and growing.”