DEALER PROFILE - PNC - PNC has training at its heart

Company founded 1992

Turnover #2.25 million

Net profit #250,000

Reseller base City of London

Year end 30 September

Board members Gordon Tees, managing director; Frank Pyke, commercial director.

Main product lines Microsoft, Lotus, IBM, Digital, Compaq, Hewlett Packard, Citrix, Novell.

Accreditations Microsoft Certified Solution Provider, Lotus Business Partner, Citrix Gold Reseller, Compaq Systems Reseller, Digital Business Associate, IBM Business Partner, HP Business Partner.

Key accounts Close Brothers, Commerzbank, Credit Agricole Indosuez.

Distributors CCD, CHS Electronics, Computer 2000.

Main competitors BSG and CWB.

Describe your relationship with your distributors We strive to have good relationships with our distributors and they are better than ever. However, we have learnt from experience only to use ones that fit in with our business and are flexible. Good distribution is a skill, but a number are quite bad at it, particularly regarding delivery and returns.

Issue that would make life easier from a business point of view Vendors are offering too many reward programmes to keep track of them all. It can make administration a real headache. In an ideal world, I would like to see loyalty programmes with a lot more parity between vendors - like Air Miles - but I accept it is unrealistic to expect this.

PNC's main challenge over the next year Hiring the right people is a constant struggle. London's financial markets are chronically under-served by a generally low level of training. We also continually witness low levels of project management skills. There are thousands of contractors out there, but very few with the right level of skill. We have one of the best reward packages in this industry and attract the best people, but I hardly ever come into the office in the morning without seeing someone revising for an exam.

What other problems do resellers face? In my opinion, a lot of dealers and resellers seriously need to consider their future in the channel.

Anyone can set themselves up as a dealer and sell lots of kit, but that no longer guarantees that you will make money. The only way we can stand out is by being totally services-led and training staff accordingly. Another significant problem in the channel is that there are too many companies which try to be a jack of all trades. Too many times we have been called in to clear up someone else's mess, which is good for us, but it shouldn't happen in the first place.

Why does it happen? I think it comes down to the immaturity of the industry as a whole. It's about proving your expertise and too many companies think they can do everything. Also, technology is developing at a bewildering pace and often moves quicker than is beneficial to customers. The latest technology is ultimately only beneficial to a company if it improves the balance sheet.

Microsoft is demanding more Microsoft-certified staff before accreditation.

Does this worry you?

I am delighted. I think all companies that make proper investments in training will welcome any move to raise the barrier for entry. The Microsoft programme has become extremely enlarged over the past 18 months. If you are services organisation that employs 500 people you only need a couple of Microsoft-qualified staff to become a solution provider, this hardly seems right does it? Also, it is worrying to see companies with so few trained staff taking on assignments which are beyond them.

How do you think an economic downturn would hurt the IT industry in the UK? Certain companies will be affected more than others, but I believe specialists will be better at making profits during a recession. I think we have a habit of talking ourselves into a downturn and the amount of bad press recently does not help. Companies will undoubtedly reduce spending on projects and if you are a broadband equipment reseller on low margins it will be hard.

Do you feel threatened by the Compaq/Digital merger? Compaq is undoubtedly setting itself up as a services company, which will squeeze a lot of resellers out. But it is not a threat to us at all because Compaq will find it very difficult to operate in the markets we work in. Itwill succeed to a degree in getting some large corporate accounts and outsourcing contracts, but it can't be all things to all people.