A loss to Austria in Vienna on Friday has put them in a relegation battle, but O'Neill wants to build on the positive home performances he has seen.
"We're not going to come here and dominate the ball against a team that is predominantly made up of players from the Bundesliga and the Premier League," he said.
'We had eight Championship players on the pitch and three Premier League players on the pitch. That's the make up of our squad.
"It is a step up for a lot of our players to come to this kind of arena against these kinds of players. They have to realise they are good enough to compete, they are good enough to play at this level.
"That's the challenge, but for some of them, they are at the very infancy of their international careers and sometimes having that self belief and ability to go and play on the front foot, it takes time and experience and they'll be better for having played here."