IT&T resellers: Show us the money

A survey conducted by AAPT's channel partner IProvide has found 70 percent of local IT&T resellers aren't deriving any revenue from selling telcommunications services.

IProvide contracted Frost & Sullivan to survey over 450 local companies in January and February for its "Indicator 2006" study on IT&T reseller behaviour.

According to the research, of the resellers involved in advising businesses about telco services, only 35 per cent actively sell and 29 per cent recommend but do not receive any direct revenue as a result.

Over 50 percent of resellers selling telco services said there was either a high or medium level of opportunity to sell these services as part of a package with their existing value-add product range.

The most significant obstacle for these resellers offering and services was finding skilled employees with over 20 per cent rating this as significant. High internal costs are also a factor restricting resellers from providing value-added services.

Phil Sykes, managing director of IProvide by AAPT, said the research also found that 65 per cent of IT&T resellers have changed their telco supplier relationship within the last two years.

“The main reasons identified in the study for resellers changing telco suppliers were limitations in the range and flexibility of services, cost and poor after sales support. These factors limit the reseller's ability to deliver the complete IT&T solution that business is now looking for," he said.

"The research confirmed the majority (95 per cent) of IT&T resellers currently selling telco services are providing their own unique value-add services to businesses in order to improve competitive position, increase profit, and reduce their customer churn."