The announcement of any merger elicits its own unique reaction. Either there is surprise, or confrontation, or acceptance, or complete resistance. In India, we have only recently started getting exposed to the realities of mergers. Especially, in the channel. Most partners do not know how to react when they hear of an M&A in the IT industry.
When companies merge, the channel does not have an immediate understanding of how the business is going to be impacted. I was once told that the channel is the third important consideration when companies deliberate the pros and cons of an acquisition. And yet in India, going by partners’ reactions to an M&A announcement, it looks like the channel importance is over-estimated. For partners are quite clueless when asked on the implications of the new status.
Partners don’t seem to know what’s going to happen next. In the struggle for survival, the channel has become less brand-conscious and more margin-focused. As a result partners are losing out on their right to information. They placidly wait to be told about the new channel strategies. If they want to safeguard their business, the channel needs to start asking the right questions. Or else the lack of interest would work against them. For, then the company knows that they need the business and the best offer might just elude the deserving partner.
With the trend of M&A gaining momentum in the IT industry, the partner needs to become a proactive questioner who demands answers. For the answer will help him make informed decision on future growth paths.