Channel Resilience: Adapting, Innovating, Thriving

In the ever-shifting landscape of IT services, one constant remains – resilience. Channel partners, system integrators, and managed service providers are not merely adapting to change; they are thriving in the face of it. The story of their resilience unfolds as a testament to their ability to embrace innovation, navigate disruptions, and envision strategies for future growth. As we delve into this narrative, we uncover the strategies and insights that empower these solution providers to navigate the challenges of the new norm in IT services, offering readers a glimpse into the resilience that has become their hallmark.

Amit Singh

In the pulsating heart of the digital era, the IT services landscape is a kaleidoscope of perpetual change. It’s a domain where evolution isn’t a choice but a necessity, and within this dynamic arena, the resilience of channel partners, system integrators, and managed service providers emerges as a defining force. As technology advances and global events reshape the way we work and connect, these professionals not only adapt but thrive, turning disruption into an opportunity to showcase their unwavering resilience.

Rapid transformation of IT services

The seismic shift in the IT services landscape over recent years has posed challenges that demanded swift and decisive responses. As organizations globally grappled with the ramifications of the global pandemic, channel partners emerged as frontline navigators of the ‘new norm.’ Overnight, remote work evolved from a mere option to an indispensable necessity. Channel partners not only adjusted their internal operations but also played a pivotal role in facilitating clients’ seamless transitions to remote work environments.

Anuj Gupta, CEO of Hitachi Systems India, reflects on this paradigm shift, stating, “Work from home, which was once inconceivable, became a reality. The last two years witnessed an unprecedented surge in the adoption of technology and digitalization. Organizations embarked on diverse technology projects, recognizing the imperative of a digital-first approach for survival. Tech-savvy businesses rode this wave, achieving substantial scaling. However, numerous struggled to adapt to the new working paradigm, resulting in the demise of several technology-dependent enterprises.”

In the realm of recent disruptors, the ascent of GenAI technology stands out prominently. Munesh Jadoun, Founder & CEO of Znet Technologies, elaborates on its impact, saying, “GenAI technology, with its advanced AI and ML capabilities, has revolutionized various aspects of our operations, particularly in cybersecurity.”

Through a lens focused on innovation, the channel ecosystem assumed the role of architects of continuity, ensuring that clients seamlessly propelled digital transformation while transitioning to remote work environments without missing a beat. Prashanth Subramanian, Executive Director of Quadra Systems, emphasizes the proactive stance taken during these tumultuous times, saying, “Our clients were navigating uncharted territory, and so were we. The key was to stay ahead of the curve, anticipate challenges, and provide solutions before our clients even realized they needed them.”

He goes on to explain the dual facets of their company’s approach, stating, “There are literally two fronts to our company: one team is focused on thinking ahead and identifying the technologies that will matter most for our customers, and the other team helps customers stay on track with their existing technology portfolio, even while working closely to help them adapt to what’s next.”

In fact, the IT services sector demonstrated remarkable agility in adapting to the altered circumstances. Ajay Sawant, Managing Director of Orient Technologies, highlights their swift pivot to delivering managed services through their Network Operating Center (NOC) and the embrace of Remote Infrastructure Management. This strategic shift marked the inception of a hybrid support culture, leveraging the NOC to provide remote support and bridging the gap to ensure comprehensive assistance to clients.

Sawant underscores that this strategic adaptation allowed them to maintain the delivery of robust IT services, safeguard employee well-being, and meet the evolving needs of clients even in the face of unprecedented disruptions. The channel ecosystem’s ability to not only weather the storm but also proactively shape the narrative of the ‘new norm’ exemplifies the true resilience embedded within the DNA of IT service providers.

Innovations in service delivery

In response to clients’ increasing demand for agility and tailored solutions, service providers boldly entered the arena of innovation. They transformed into architects of change, not merely crafting solutions that met current needs but anticipating the evolving demands of their clientele.

“The embrace of remote support during the pandemic laid the groundwork for a widely embraced hybrid support system. Post-COVID, this model has not only endured but has become a permanent fixture in our service offerings. This heightened acceptance reflects a broader trend wherein clients value the agility and effectiveness of remote support, culminating in a secure and efficient hybrid support system,” reveals Sawant of Orient Technologies.

Even with the return of employees to offices, the acknowledgment and acceptance of hybrid support persist, seamlessly integrating both remote and on-premise assistance, he adds.

Clients are venturing into containerized modes, embracing no-code applications, and optimizing resources with large language models (LLM). However, as customers grapple with adapting to these evolving technologies that could potentially disrupt or dismantle their businesses, partners find themselves challenged by the rapid pace of skill development required to keep up. Gupta of Hitachi Systems underscores the importance of transparent collaboration with customers, transcending a mere supplier role. Collaboration on significant projects and a commitment to mutual learning form the bedrock of evolving together.

Moreover, Hitachi Systems underwent regional restructuring to initiate a refined Go-to-Market (GTM) strategy. “In the north region, our focus has been on key sectors like BFSI, IT/ITES, manufacturing, and Government. In the south, we targeted significant software development houses and a burgeoning cloud and startup ecosystem. By integrating these specialized services with our traditional System Integration (SI) business, we embarked on a strategic go-to-market approach. While the journey has been challenging with more investment than recovery thus far, I am optimistic that in the next two years, these initiatives will set us apart in the market,” shares Gupta.

Numerous service providers have innovated to meet the evolving demands of clients. Jadoun of Znet Technologies notes the changing expectations of ISV (Independent Software Vendor) customers, seeking marketing guidance in addition to technical support. Responding to this, they launched a comprehensive marketing guidance program, assisting ISVs in effectively promoting their software solutions in the market, expanding their reach, and achieving better market penetration.

Conversely, NetApp is simplifying the process for partners to add competencies and enhance service delivery. “As the industry shifts towards cloud services, we introduced a partner program called Partner Sphere. This program revolutionizes our engagement model with partners by offering innovative enablement programs. In response to evolving customer expectations, our partners are now equipped with 11 service-certified tracks and 19 solution competencies. These competencies cover areas such as flash, cloud, customer services, and various service models, enabling partners not only to supply products but also to deliver implementation, deployment, and managed services,” describes Ganesan Arumugam, Director, Channel Sales, NetApp India.

He emphasizes, “Our certification programs and solution competency certifications help partners stand out from the crowd. In a world where partners aim to differentiate themselves and move beyond mere transactions, NetApp’s programs empower partners to provide differentiated services to their customers.”

Cloud services as the mainstay

Cloud services have not merely been solutions; they’ve evolved into enablers of a new paradigm, fundamentally reshaping the essence of IT service delivery.

“Initially, the cloud was often confined to experimental and developmental work, with production work predominantly on-premise. However, there has been a paradigm shift with a substantial number of customers hosting both development and production workloads on the cloud,” shares Sawant of Orient Technologies.

This acceptance of cloud services has remained steadfast even post-COVID. “Cloud services offer a unique advantage in their remote accessibility. Whether it’s optimization services or security services, encompassing DevOps, FinOps, and SecOps, the cloud ensures these are seamlessly delivered, offering financial visibility to clients regarding their cloud billing. This trend has witnessed substantial growth over the last three years and continues to expand,” he further elaborates.

In fact, the cloud has become a cornerstone for many service providers. “The cloud has become one of the three pillars for us to drive our business forward. We established a dedicated Cloud Business Unit (BU) with focused teams, fostering partnerships with industry leaders such as AWS, Azure, and Google. The goal was to create a separate entity for cloud services, distinct from traditional on-premises services, which proved to be a successful strategy. Presently, our Cloud BU boasts a team of 150 professionals, engaging in hybrid use cases, particularly in sectors like banking and manufacturing,” explains Gupta of Hitachi Systems.

The company also strategically focuses on the future role of applications. “We identified that applications would be central to businesses, prompting the creation of a robust practice in Application Performance Monitoring (APM) and AI Ops as the second pillar. This involved partnering with entities like Dynatrace, Heal, and Cisco Appdynamics. With a dedicated team of 100-150 professionals, this practice has seen substantial investment over the last 18 months, yielding positive results,” he adds.

Furthermore, cloud services have played a pivotal role in reshaping IT service delivery, especially for SMB clients facing challenges in scaling their businesses. “We addressed this by offering customized cloud solutions tailored to the specific requirements of SMBs. This transition has resulted in significant cost savings and increased operational efficiency, reducing the reliance on on-premise hardware for our clients,” says Jadoun of Znet Technologies. The cloud’s transformative impact extends beyond a technological shift; it has become a strategic lever for businesses aiming to thrive in the evolving landscape of IT services.

Cybersecurity becomes the rage

As the digital landscape expanded, the scope and sophistication of threats expanded in tandem. Cybersecurity evolved from being an optional add-on to a fundamental cornerstone, a non-negotiable imperative in the current IT landscape.

“Cybersecurity has emerged as the third pillar driving our business growth. Leveraging our 22-year expertise in this domain, we offer specialized services through our Security Operations Center (SOC) and Risk and Intelligence (RI) services. This involves strategic partnerships with key Original Equipment Manufacturers (OEMs), allowing us to create a comprehensive suite of services around their products. Acknowledging the evolving threat landscape, our approach is service-centric rather than merely product-oriented, addressing challenges posed by AI-driven attacks and defenses,” explains Gupta of Hitachi Systems.

Similarly, Orient Technologies strategically integrated various tools and technologies to enhance its remote infrastructure support capabilities over the past two years. “The critical aspect here is ensuring the security of customer data while comprehending their infrastructure solely through logs. We meticulously shortlisted and developed proficiency in specific tools, training our resources to optimize their usage. This strategic move has resulted in a substantial increase of 15 to 20 percent in revenue, particularly in cloud services and on-premise services delivered remotely,” shares Sawant.

Subramanian of Quadra Systems adds, “We have consistently delivered transformational outcomes for our customers across multiple domains, including manufacturing, pharma, and IT/ITES. AI-based security dashboards seamlessly combining organizational insights with security signals, AI-powered, human-curated managed security services, and the continuous delivery of digital transformation experiences – these are just a few among the many projects that have contributed to our customer’s success.”

The human element

In the whirlwind of technological advancements, the enduring value of the human touch has emerged as a constant. Channel partners recognize that technology, while transformative, is a tool, and its true magic unfolds when wielded by professionals who prioritize relationships. Building strong client relationships, in this context, has become an art form—a testament to the enduring power of human connection.

“In our line of business, delivering a superlative customer experience is akin to managing a delicate relationship where one glitch can overshadow multiple successes. Thus, we acknowledge that achieving a flawless customer experience is a myth in our industry. Instead of promising the unattainable, we focus on setting realistic expectations and standing firmly by our customers,” asserts Gupta of Hitachi Systems.

He emphasizes, “Our commitment revolves around being available 24/7 to support our clients. While we may not have all-encompassing solutions for every problem, we assure our clients that we stand shoulder-to-shoulder with them. Our goal is to minimize business disruptions in the event of any issues. Through this approach, we’ve built a reputation for reliability and commitment.”

In the realm of IT services, the customer experience has evolved into a currency of its own. Professionals in the channel ecosystem don’t merely provide solutions; they craft experiences, leaving an indelible mark on the clients they serve.

“Even in remote support scenarios, where physical presence is absent, our service delivery managers play a crucial role. They maintain continuous communication with customers, understand their expectations, and strive to enhance service levels. This personal touch instills confidence in our customers, assuring them that their concerns are heard. The consistent efforts of our service delivery managers have significantly contributed to an improved overall customer experience, positively impacting customer acquisition and fostering business growth,” underscores Sawant of Orient Technologies.

This commitment has translated into substantial revenue growth for the organization. “The investments made in tools and technologies have proven worthwhile, leading to customer retention and the acquisition of new customers. Over the past 18 to 24 months, we have experienced notable growth, witnessing a 15-20% increase in services revenue. Our proficiency in providing excellent support has not only led to customer satisfaction but has also resulted in technology orders as customers refresh their technologies. In terms of new additions, we have welcomed approximately 22 new logos in the past year, indicating a robust expansion of our clientele,” discloses Sawant. The integration of technology with a personalized touch not only elevates the customer experience but also fuels significant growth and loyalty in the competitive landscape of IT services.

Imperative of continuous learning

In an industry overshadowed by the specter of obsolescence, the call for continuous learning has become a guiding doctrine. As the landscape undergoes seismic shifts, so do the requisite skill sets. Professionals in the channel ecosystem comprehend that survival and success are not foregone conclusions; they must be earned through an unwavering commitment to ongoing learning and development—a direction in which most service providers are already actively engaged.

“We offer a diverse array of training programs and actively encourage our employees to pursue relevant courses to augment their skill sets. This not only enriches our team members’ capabilities but also directly contributes to our organization’s success. Our team boasts more than 200 technical certifications, ensuring that we possess the expertise and knowledge to deliver top-notch solutions and support to our diverse clientele,” shares Jadoun of Znet Technologies.

To further incentivize and recognize these efforts, a rewards system has been implemented for those actively engaged in reskilling and upskilling. This approach has not only bolstered team morale but has also resulted in a more proficient and adaptable workforce, he adds.

Indeed, channel partners have transformed into architects of their own success by investing significantly in the skills and expertise of their teams. Reskilling and upskilling are no longer mere buzzwords; they have evolved into the cornerstone of competitiveness. The investment in human capital has become the secret sauce of resilience.

“We have identified five key areas for investment and skill development: cybersecurity, APM, cloud computing, database management, and open-source technologies. In collaboration with key OEMs in these areas, we have concentrated on reskilling our employees. While challenges, including the preference for remote work, have surfaced, we believe that deep specialization is crucial in the current environment. It’s a challenging journey, but being a specialist is more valuable than being a generalist,” highlights Gupta of Hitachi Systems.

However, with upskilling of employees, retention has emerged as a major challenge for many. “The retention of skilled individuals becomes a significant challenge, especially as their market value increases post-certification. To address this, beyond financial incentives, we’ve heavily invested in cultivating a positive organizational culture and environment. This includes fostering a sense of belonging, which has contributed significantly to retaining our talent despite the prevalent industry-wide challenge of attrition,” shares Sawant of Orient Technologies.

Beyond technological upskilling, the company sponsors MBA programs and project management courses, adopting a holistic approach that not only enhances technical skills but also promotes team management and project leadership capabilities. This multi-faceted strategy has proven effective in ensuring customer satisfaction and sustaining organizational growth, adds Sawant. The commitment to continuous learning and holistic development stands as a testament to the resilience and foresight of these channel partners in navigating the dynamic landscape of IT services.

Strategies for future growth

What distinguishes leaders from followers in the IT services realm is their foresight for the future. The forward-looking strategies employed by channel partners and IT service providers have become the roadmap to resilience.

“To thrive in the evolving IT services marketplace, a strong focus on agility and adaptability is crucial. The ability to swiftly respond to emerging technologies and changing client needs is paramount. Additionally, building strategic partnerships with leading tech companies and staying abreast of industry trends ensures access to cutting-edge tools and resources,” shares Jadoun of Znet Technologies.

Sawant of Orient Technologies adds that for Managed Service Providers, services like Backup-as-a-Service, Disaster Recovery-as-a-Service, and Device-as-a-Service have gained significant popularity. “On the cloud services front, the focus is shifting towards Security Operations (SecOps) and Financial Operations, indicating an increased emphasis on security and financial aspects within the cloud services domain.”

While emerging technologies garner attention, many channel partners recognize the ongoing investments in foundational technologies like servers, storage, and cybersecurity. “We maintain focus on Business as Usual (BAU) initiatives, which have been instrumental in our current success and will likely continue for the next two years. Simultaneously, we are creating separate business units (BUs) with dedicated teams for cloud, application performance monitoring (APM), and cybersecurity. The intention is to invest and scale these BUs strategically, ensuring their profitability over the next few years, and eventually integrating them into the BAU structure,” discloses Gupta of Hitachi Systems.

As we conclude this exploration of resilience, one truth stands out: the ever-evolving nature of IT services is not a challenge to be conquered; it’s an opportunity to be seized. The journey from disruption to innovation, from adapting to thriving, is a testament to the resilience embedded in the very fabric of the channel ecosystem. In the new norm of IT services, where change is constant, the resilience of channel partners and IT service providers is the compass guiding the industry towards a future where challenges are not roadblocks but stepping stones to success.