Johannesburg, South Africa – July 2nd, 2024 – A new study from Sage (FTSE: SGE), the leader in accounting, financial, HR, and payroll technology for small and mid-sized businesses (SMBs), reveals a significant shift among technology channel companies who are moving from a one-and-done, buy-and-install approach to becoming strategic advisors for SMBs, unlocking significant growth opportunities and paving the way for greater digital agility.
The report, ‘Small and medium-sized business demand for digital advisory services fuels IT channel growth’, surveyed 2,800 technology channel decision-makers globally, revealing a pivot from traditional sales to strategic, advisory-driven relationships. This transition is not only enhancing digital agility among small and mid-sized businesses (SMBs) but is also opening up substantial growth avenues for technology resellers.
“In South Africa, resellers consider financial data, analytics technologies, and reporting tools particularly useful for providing advisory services to customers, with 77% endorsing their importance. Furthermore, 68% of South African SMBs identify cybersecurity technology as the most critical tool for enhancing digital agility in the channel industry over the next 18 months. This is closely followed by a strong emphasis on AI and automated services (63%) and databases and CRM systems (57%). The data clearly positions cybersecurity as a crucial pillar for building digital agility, with the overwhelming majority of South African resellers highlighting its importance,” says PJ Bishop, VP: Partners, Alliances and Accountants, Africa & Middle East, Sage.
From a global perspective, the research highlights that more than half (55%) of technology resellers have shifted their focus toward providing strategic advice and services, aiming to improve SMBs’ ability to swiftly adapt to market shifts, evolving customer demands, and new technological breakthroughs.
Notably, 73% of IT resellers believe SMBs consider investing in digital agility as a high priority, seeing it as a way to drive business growth (29%), enhance competitiveness (24%), and increase efficiency (23%).
"These findings mark a significant shift within the channel industry. The move towards more personalised solutions and stronger customer relationships is revolutionising our support for SMBs,” says Sippora Veen, VP Global Partner Marketing, Sage.
“With the adoption of advanced technologies like AI, and a commitment to building skills, we are better positioned to help SMBs face challenges and thrive in the digital era. This collaboration is essential for fostering innovation and mutual growth."
“Having spent over 25 years in the channel, I have observed a shift within the SMB market propelled by the need for growth, competitiveness, and efficiency. More SMBs are now prioritising digital agility to remain competitive and resilient in a constantly evolving business environment”, says Susan Vincent, Managing Director, Baker Tilly, Sage Partner.
“As channel leaders, we must shift towards a consultative approach to support our customers and help them activate the latest technologies with ease. It's time to adapt and stand out.”
Sage's research underscores the importance of deepening collaboration between IT resellers and SMBs to fully harness new technologies and enhance resilience against market changes. By focusing on areas like cyber security, digital transformation, and operational efficiency, IT resellers can boost their growth while helping SMBs navigate these challenges successfully.
"Digital agility is the new currency for SMBs, and channel partners play a critical role in enabling businesses to leverage innovative solutions that optimise operations, improve efficiency, and enhance profitability. With technology evolving so quickly, it's crucial for us to stay ahead of the curve and adopt the correct tools as soon as possible. AI and cyber security are key in driving our digital agility and we rely on our IT suppliers to help us identify and deploy the right solutions that are tailored and adaptable to our growth strategy. With their support and invaluable advice, we are able to navigate the challenges of digital transformation much easier and increase our ability to pivot as necessary in a challenging economic landscape,” says Robert Colelli, Managing Principal, Operations, Cresa Toronto.
Sage exists to knock down barriers so everyone can thrive, starting with the millions of small- and mid-sized businesses served by us, our partners and accountants. Customers trust our finance, HR and payroll software to make work and money flow. By digitising business processes and relationships with customers, suppliers, employees, banks and governments, our digital network connects SMBs, removing friction and delivering insights. Knocking down barriers also means we use our time, technology, and experience to tackle digital inequality, economic inequality and the climate crisis. Learn more at www.sage.com.
The research questioned 2,800 decision makers in the tech industry whose company resells tech and IT supplies/services for various businesses in Canada, France, Germany, Portugal, South Africa, Spain, the United Kingdom and United States. The interviews were conducted in April and May 2024.
This online survey was conducted by market research company OnePoll, in accordance with the Market Research Society's code of conduct.
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