Association Time

While there are quite a few new regional and local associations that are
being formed, the latest DQ Channels-IDC survey of India's most active dealers
associations clearly indicates that there is a lot more to be done. While the
good news is that the overall performance and rating of 12 dealer bodies in the
survey has improved over the previous year, the flip side is that 10
associations have slipped from their earlier ranking.

As the domestic Indian market for IT products and services grows, the role
and significance of channel partners will also go up. These players are today,
by and large, very unorganized and scattered in nooks and corners of the
country. They will have to get more organized. They will need to work closely.
Then only will they be able to leverage the domestic IT market opportunity,
which is expected to be in excess of Rs 88,000 crore during the 2007-08 fiscal.

Abraham Ahmed

One understands that most dealers and channel partners are just too caught up
with day-to-day operations to keep the business going. They do not have the time
or the resources to devote to common causes. But that is true with even the big
companies. However the biggies realize the value of trade bodies, and come what
may, they take time and resources out for this. And that is how you see the kind
of influence associations like Nasscom and TEMA have. Local and regional channel
players and their associations will also have to realize this, and take steps,
which makes them more effective as well as popular.

The DQC-IDC survey shows that it is not too tough for channel associations to
become effective and useful, hence more popular. One most important thing that
associations need to do is to be very active. Associations with a three-pronged
approach-lobbying on behalf of traders including taking up their problems with
relevant authorities, doing activities such as expos and directories  which
helps them generate more business, and holding training conferences, cricket
matches and picnics, where business mixes with pleasure, has proved to be a
formula for success. And yes, transparency is important too, so that members are
truly involved in decision-making.

There should be no two thoughts that large IT companies as well as large IT
buyers will depend more and more on small local and regional channels for sales
as well as support. Therefore, the bargaining power of channel partners will go
up in days to come. It is important that they are more organized.