Three competing northern IT suppliers have buried the hatchet and teamed up in an attempt to halt tumbling margins on IT projects.

Two months after joining forces, Leeds-based outfits Galtec and Sol 5 and Boldon-based Dapo have formed an information-sharing alliance formed to play to each other’s strengths.

Galtec focuses on hardware, helpdesk and infrastructure services and Dapo on print management, while Sol 5 is a software developer. Each member has opened up its client base and will net a consultancy fee if it leads to business for one of
its partners.

Mark Adams, managing director of Galtec, told CRN: “The IT market is changing and we need to change with it. Everyone is fighting harder for the same business and losing margin. We need to be playing to each other’s strengths.”

Adams said two further companies are in talks to join and conceded branding may be required to take the idea further.
Jason Ball, managing director of Sol 5, said: “We always have a requirement for infrastructure and hardware with every
software development project we get involved in. This broadens our products and services and makes us more competitive.”

Scott Fletcher, managing director of Manchester-based reseller ANS, said: “As long as it does not infringe on competition, good luck to them. However, if there is an overlap, they must be careful about whether this is just working together or price fixing.”
Fletcher also claimed such an alliance could fall apart if one player proved to be dominant.