The number one competitive differentiator which ranked as the top factor in maintaining the IT channel relevance and health is customer experience (CX) as identified by CompTIA in their recent report. As we have seen the increasing importance of cybersecurity in recent years, it’s no surprise to see it feature in the top five priorities in maintaining a relevant IT channel, and Diversity, Equity and Inclusion featuring in the top ten as this focus becomes ever more prevalent.
We’ve been hearing a lot about the market forces driving against business since Covid and the subsequent economic instability, so let’s take a look at the factors driving our businesses forwards!
CompTIA identified that 66% of channel organisations saw their profit margins increase over the past two years, mainly due to service offerings such as business consulting, IT consulting and managed services. This growth was in comparison to only 13% seeing a decrease and 21% no change (‘2023 State of the Channel’ CompTIA Research, May 2023) This drive towards IT services links in with the projected growth in services revenues highlighted in last quarter’s newsletter as identified in the TD SYNNEX Technology Ecosystem Benchmark Report Q4 2022.
The top factor contributing to increased profit margins was the transition to new business/revenue models demonstrating that the evolution of partners is having a significant impact on the channel and driving partners profitability.