Associated Benefits

Trade associations in South India have provided partners a common platform to
voice their opinion to government authorities as well as flex their muscles with
vendors and distributors. The united voice of partners has begun to carry
greater weight in the industry.

Every major metro of South India is represented by a strong trade
association. If it is AIT in Bangalore, DAIT does its job from Chennai, while
HYSEA represents partners in Hyderabad. There are associations doing a
commendable job in smaller cities as well including Cochin and Coimbatore.

One of the main objectives of all associations is to represent the viewpoint
of partners to government authorities. For instance, AIT is in constant touch
with Karnataka government authorities and has played a major influenctial role
in government decisions concerning IT. Similarly Chennai-based DAIT and G10 talk
to the local government to ensure that every budget augers well for the IT
industry.

Hyderabad-based Twin City Computer Dealers Association (TCCDA) was successful
in bringing down the steep hike in sales tax on IT products to four percent by
talking to the government there. Says LR Gandhi, President of TCCDA,
"Earlier there used to be a hefty tax on the hardware goods but we spoke to
the government officials and brought it down to four percent. We are also
speaking to government to reduce the duty on UPSs from the current 10
percent."

While TCCDA expects the duty on UPSs to come down in the next three months,
AIT had very useful interaction with the givernment when the sales tax was made
uniform at four percent. Points out Moses Lawerence, MD, Computer Factory,
"The Karnataka computer dealers association was very effective in
protesting and voicing their opinion against the uniform sales tax of four
percent on computers and peripherals."

So united was AIT on the subject, the members decided to go on a protest
march to express their disappointment on the uniform sales tax. Moses believes
that AIT’s interaction with the government has been effective because the
state can boast of an IT-savvy chief minister in SM Krishna whose keen interest
to bring in computers in every aspect of state administration, has opened up
opportunities for partners and vendors alike.

Bottlenecks on the path

It is not that trade associations are able to solve all issues related to
partners. At times unsolved issues have left a section of the members of the
associations dissatisfied. Office-bearers attribute the failures in resolving
common issues to the non-cooperation and and inaction of members.  

Says A Thasthageer, Joint MD of SSS Systems, "Associations are indeed
doing a good job. No doubt about that. But, if all members of associations
contribute actively and support the vision, then associations can really work
wonders."

A check on defaulters

In the recent past, associations have put in a lot of effort to bring down
the number of defaulters in the market. One of the things associations have done
is to circulate the names of defaulters among members to ensure that they are
not affected adversely due to the non-payment of dues.

Gandhi of TCCDA agrees that one of the major issues that has hit the markets
recently is defaulters and fly-by-night operators. "We have taken this very
seriously and more than 27 resellers have been blacklisted as we have complaints
against them."

TCCDA has suggested to its members that before they do business with a new
reseller, they should get a reference from at least three reputed members and
only then give any credit. Additionally, members have been advised to screen
credit records and ensure regular payments from resellers.

Trade associations have come to stay in the South Indian market for sure. The
initiatives taken by the active office-bearers are bearing fruit as vendors and
distributors do listen to the views of associations and look forward to work
closely with them.

The associations have defined their goals and objectives in a clear fashion
to attract maximum members to their fold. If all members begin to play an active
role in the functioning of associations, then much more can be achieved to the
benefit of the channel community.

SUNILA PAUL, in Bangalore, with inputs from ZIA ASKARI, Hyderabad and A GOPI
KRISHNA, Chennai

Associations In South India

Association for Information Technology (AIT)- Bangalore

Members: 275

Objectives

• To ensure better co-ordination among distributors
  and to strengthen the distribution channel
• Approach the concerned forum to address grievances
  and hindrances connected with day-to-day activities

Dealers Association of Information Technology (DAIT) - Chennai

Members: 63

Objectives

• Voicing issues about IT industry to state government
  and other bureaucratic departments
• Disseminate relevant and useful information
  pertaining to the industry like duty structures, policy changes, tax,
  regulations etc
• Acts as a platform for members to exchange views and
  information of common interest

G10 - Chennai

Objectives

• Strengthen the distribution channel
• Platform to address grievances and hindrances
  related to day-to-day activities

Twin City Computer Dealers Association (TCCDA) - Hyderabad

Members: 80

Objectives

• To develop a platform for dealers and convey their
  message to governing authorities
• To safeguard the interest of dealers and also to
  integrate them socially with customers

Hyderabad Software Exporters´ Association (HYSEA) - Hyderabad

Members: 190

Objectives

• Maintaining contacts with Andhra Pradesh government
  and to extend support for faster growth of IT industry in the state
• Maintaining liaison with Software Technology Parks
  of India at Hyderabad with a view to promote the interests of the members.
• Work for the growth of IT industry by participation
  in overseas and domestic promotional drives and close liaison with visiting
  delegations from overseas
• Provide managerial, organizational, professional
  guidance to member units.
• Undertaking social projects that benefit the
  communities in the neighborhood 

All Kerala Computer Manufacturers and Dealers Association - Cochin

Members: 350

Objectives

• Helping members gain more knowledge about latest
  technologies
• Promote business of members
• Conduct exhibitions, seminars and other activities
• Interact with government bodies to put forward
  causes of the business community