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The impact of layoff reports by tech companies on enterprise channels in India

Yogesh Gupta | July 9, 2013
Enterprise channels are vigilant to safeguard their business as partner friendly technology companies reduce their workforce.

"The larger issue is to look at an OEM's long-term commitments to Indian market and how people transitions are managed by them to ensure business continuity," says Sunil Pillai, Co-Founder & MD, iValue InfoSolutions.

Many vendor companies are over-invested in India in the short term and they reduce manpower when the results are not met. This affects channel sentiments as they perceive it as a lack of commitment from that company, says Kumar. "We step up on our vendor's behalf to ensure the right level of engagements are maintained at customer and channel segments to ensure business remains unaffected during such temporary phases, says Pillai.

Shifting Loyalties
"We would not shift to a competing vendor in the wake of such news without any specific reason," says Gosar. "We will not move to other vendor unless we feel any deviation in any commitment inked at the time of association," agrees Jain at Aryan Computers & Peripherals. However one should keep option of the next possible vendor though business with one vendor in each segment is preferred to strengthen your relationship, he says.

Parag at Dynacons, however, says, "we would like to keep our options open. If we believe in our vendor's commitment to the Indian market and their products' relevance, we will stick to them and even offer our resources if needed," says Kumar at RAH Infotech. As long as there is commitment with transparent discussion and understanding, such short term challenges can be managed, says Pillai.

According to Kumar, a business owner has to be prudent and sometimes add technologies to their portfolio that may overlap with some of their existing vendors. It imparts a different value add that the technology brings and not necessarily because of risk mitigation alone, he adds. "We usually deal with multiple vendors across the same product line. Our shared resources are more product / technology based rather than based on vendor alone," says Dalal.

Do partners and customers overreact to layoff news? "Yes at times. If a technology by a vendor company is good with global support, competitive pricing, well managed inventory through a focused VAD, then few executives moving out shouldn't make much of a difference," sums Kumar at RAH Infotech.


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