Serve To Lead

In a landscape where margins are increasingly declining and hard to sustain, partners are discovering that services offer an opportunity to supplement their business. Reseller ME speaks to experts to learn how the channel can differentiate through a strong services offering.

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Low margins continue to be one of the biggest problems for regional IT channel players. Partners need to constantly find ways to improve their bottom line and focus on profitability even today. While both vendors and distributors have a responsibility to ensure partners are trained on latest technologies to improve their skillsets and devise profitable initiatives, it also depends on the channel firms themselves to address the issue head on.

Increasing number of channel organisations are finding that by offering value-added services, they are able to enhance their margins considerably.

“The Middle East IT services market is polarized, with a contrast of low-value and high-value services,” says Savitha Bhaskar, COO, Condo Protego. “Many Middle East channel partners offer low-value managed services that provide operational assistance with day-to-day administration. On the other end are specialised partners with specific domain expertise who provide high-value and high-cost business consulting and technology consulting, and assist with creating new efficiencies and driving digital transformation strategies.”

In order to differentiate their portfolio through services, partners need to consider their own branded offers and services supported by the vendor, says Will Hamber, senior director, partner operations, EMEA, Juniper Networks.