Partners Will Co-Create with Vendors in 2025: A Year for the Partner Community with India Emerging as the Beneficiary

As the global tech landscape evolves at an unprecedented pace, 2025 is set to be a defining year for the partner ecosystem. Partners are poised to co-create with vendors, driving innovation, transformation, and growth across industries. This collaboration comes at a time when India is uniquely positioned to capitalize on the global shift, as businesses seek a “China+1” strategy to diversify their supply chains and reduce dependencies.

The IT spending projected to grow by 8.3% in 2025, reaching $5.44 trillion, the partner ecosystem is emerging as the backbone of innovation, services, and sustainability. This growth reflects a new era where partners are no longer just intermediaries but co-creators, building ecosystems alongside vendors to address complex market needs.

India: The Rising Star in the Channel Ecosystem

As global markets look beyond China, India stands out as a promising alternative. Predictions for 2027 indicate that India will:

1. Become the world’s third-largest economy.
2. Achieve 55% local manufacturing in device production, reducing reliance on imports.
3. Democratize IT access through flexible finance models like “Buy Now, Pay Later.”

India’s growing investments in AI, sustainability, and digital transformation make it an attractive market for global vendors and a critical hub for the partner community. The “China+1” strategy aligns seamlessly with India’s burgeoning tech ecosystem, offering vendors a reliable and scalable alternative.

Co-Creation: The New Partner Paradigm

The theme of Canalys Forum 2024—“Embrace the Challenge, Drive the Change, Be the Champion”—underscored the shift in partner-vendor relationships. In 2025, partners will no longer merely resell products but will co-create value by integrating software, services, and cybersecurity solutions.

Key trends driving this transformation include:

1. Economic Shift in Partnering: Channel economics are evolving, demanding partners to move beyond traditional business models.
2. AI as a Partner Opportunity: General AI is opening avenues for partners to deliver customized, AI-driven solutions.
3. Industry-Specific Approaches: From e-commerce (Alibaba) to entertainment (Tencent Cloud), vendors are focusing on tailored solutions, offering partners opportunities to specialize.

The rise of managed services (growing at 15%) and cybersecurity (growing at 10%) highlights the importance of services-driven models.

India as a Beneficiary of the Global Shift

With geopolitical tensions and supply chain vulnerabilities pushing businesses to diversify, India has emerged as the natural choice for global investments. The “China+1” strategy has seen major shifts, including:

• A Third of PC Production moving from China to Southeast Asia by 2027.
• Chinese cloud providers experiencing growth slowdowns, slipping from 65% in 2020 to 14% in 2024.
• Competitive Pricing: Chinese cloud services remain 30-40% cheaper, but the push for sovereignty and localized solutions makes India a strong contender.

India’s ability to balance cost-effectiveness with innovation makes it the ideal destination for vendors and partners seeking sustainable growth.

Channel Growth Through Innovation

As technology selling integrates with services, building engines for channel growth has become a priority. The rise of specialist distributors will drive innovation through:

• Ecosystem creation.
• Sustainability initiatives, such as IT asset takeback programs.
• AI-powered services that enhance value for end customers.

The forum also highlighted the importance of co-creation platforms. For example, Redington is building a marketplace tailored for SMBs, prioritizing software, security, and services. Similarly, partners like TD SYNNEX are enabling the transition to “Destination AI,” where AI solutions become the centerpiece of growth strategies.

2025: A Year for the Partner Community

The channel’s ability to adapt to fast-paced changes and align with vendor priorities ensures that 2025 will belong to the partner community. Key predictions from Canalys Forum 2024 reinforce this:

1. Agentic AI will drive $7 billion in opportunities, with over $5 billion flowing through the channel.
2. India will emerge as the global leader in AI and digital transformation.
3. Flexible finance options will democratize IT adoption, benefiting SMBs and partners alike.
4. Vendors like Dell and AMD are reshaping technology to meet future demands, emphasizing data and GPU-driven solutions over traditional CPUs.

Stay tuned to itVARnews for more insights on how partners can thrive in the evolving tech landscape.