From Online Challenges to Innovation: Insights from Devesh Rastogi, President of FAIITA

In this insightful interview with Amit Singh, Devesh Rastogi, President of the Federation of All India IT Associations (FAIITA), discusses the federation’s role in shaping the IT industry landscape in India. From navigating online retail challenges to fostering new talent and aligning with government initiatives, Rastogi provides a comprehensive overview of FAIITA’s achievements and future goals

Amit Singh: Can you elaborate on FAIITA’s contributions to the IT industry and its impact on the growth and development of the sector in India over the years?

Devesh Rastogi: FAIITA, established about a decade ago, was initially formed to address the challenges posed by online retail. This issue remains relevant today, as large-format retailers expand and new challenges arise. The market is vast, and while everyone has a share, it’s crucial to adapt to new business models. One significant focus of FAIITA is to encourage the next generation to join and innovate within the family business. Our goal is to ensure that new ideas continue to emerge and add value to our industry. We also actively support government initiatives like “Make in India” and MSME manufacturing by incentivizing and assisting those pursuing new projects and manufacturing ventures.

Amit: Could you highlight some of FAIITA’s key achievements in recent years?

Devesh: Several key achievements stand out. For example, we’ve successfully mediated disputes and provided guidance on vendor policies. One notable instance involved negotiating with a major brand to reverse a substantial debit note and subsequently influencing policy changes. Additionally, we’ve attempted to establish the India IT Mall to help channel partners compete with major online retailers. While it hasn’t yet met all our goals, we remain committed and are planning to revive the initiative with the support of ONDC later this year.

Amit: How has the IT industry evolved in terms of partner and customer expectations, especially in the post-COVID era?

Devesh: The IT industry has undergone significant changes. Previously, there were multiple distribution layers, but many have disappeared or are evolving. The traditional T2 layer is now focusing more on consumers, while many smaller resellers, especially in the laptop sector, are struggling against online competition. On a positive note, there’s been growth in sectors like CCTV, where IT partners can offer value-added services, leading to better margins. However, software sales have declined, shifting the focus towards cloud services, data protection, and security. Partners must adapt by focusing on these areas to remain competitive.

Amit: What three best practices would you recommend to channel partners to enhance their business models and customer relationships?

Devesh: First, be customer-centric. Providing exceptional service, including home delivery options similar to what is offered by companies like Swiggy, can greatly improve customer satisfaction. Second, add value to your products. Bundling services or software with hardware can enhance the customer experience. Third, engage with your customers post-purchase. Regular follow-ups to ensure satisfaction and gather feedback can foster better relationships and lead to repeat business. Adjusting your business model to incorporate these practices will help improve profitability and customer loyalty.

Amit: Looking ahead, what are FAIITA’s top focus areas for the next few years?

Devesh: Our primary focus will be on identifying new opportunities for partners and encouraging the next generation to take an active role in family businesses. We are committed to supporting these goals to drive growth and innovation within the IT industry.