TAO’s first moves abroad: lessons in culture

When Marc Oswald joined Open Assessment Technologies (OAT), the company was still a spinoff idea from a research project at the Luxembourg Institute of Science and Technology (LIST). Its product, TAO, quickly became the name known worldwide having provided the digital platform for the Programme for International Student Assessment, better known as PISA. 

Today, TAO is a global leader in digital assessments providing an open-source software solution for digital testing in schools, universities and national assessments, with contracts across continents. The company was launched in 2013 and the team’s first international move was to the United States, a market Mr Oswald knew well from years of living there. Later, Japan became another milestone, but with a very different approach.

Entering the US market

Mr Oswald explained that the timing was crucial. “At the time we launched TAO, the US government was pushing digital education, and schools across the country had to demonstrate progress. That meant testing at scale, and TAO’s open-source solution was exactly what they needed.”

Unlike Europe, where digital exams were still rare, the US was in full transition. Mr Oswald’s familiarity with the country and business landscape made the move natural. In 2015, a subsidiary was incorporated in Delaware to meet customer requirements. 

“It was the right time with the right product,” he said. For several years, almost all revenue came from the US, and TAO became the trusted open‑source alternative to proprietary software systems, meaning customers could access and adapt the code instead of being locked into one vendor.

TAO was unique in offering openness, flexibility and lower cost, and customers were waiting for it.” Marc Oswald, Co-CEO at Open Assessment Technologies

Building trust in Japan

Japan required a different strategy. “There are markets where you can go direct, and others where you need a local partner, because of the cultural differences. Japan is definitely like that,” Mr Oswald noted. TAO partnered with Infosign, a company partly owned by Uchida Yoko, a major player in the education sector.

Working with a local partner has its own challenges and requires confidence in the relationship. “They sent five people to Luxembourg for training, plus a translator. That was a big investment for them and a strong signal of commitment.” 

Uchida Yoko later took the lead on a major project for the Japanese government and built a specific ecosystem for the market, integrating TAO into portals for students, parents and teachers. Seeing the TAO logo on screens in Japanese classrooms was a proud moment for Mr Oswald and his team. In 2023, OAT became part of the Uchida Yoko group of companies while remaining a Luxembourg company and currently has approximately 120 employees. 

Adapting to a changing market

Europe eventually caught up and became TAO’s largest market, driven by policy changes on both sides of the Atlantic. Mr Oswald highlighted France as an example: “When we started working with France, their annual budget was modest. Today it is more than ten times higher, all because of decisions to make education data-driven.” Other countries followed suit, showing how government priorities can reshape opportunities. For TAO, this shift meant that Europe overtook the United States as its biggest market.

He emphasises that cultural awareness is essential for founders, particularly in recognising which markets require the support of a local partner. In Japan, indirect communication and politeness can easily mask misunderstandings, making patience and sensitivity vital. In the US, speed and open-source technology made TAO’s value proposition stand out.

Luxembourg’s ecosystem also played a role. The initial research support, the spinoff process and investor backing gave OAT the foundation to scale abroad. “You cannot build a viable business in education by focusing only on Luxembourg. Going international was the only way.”