US internet service provider PSInet has launched a partnership programme intended to establish an indirect channel for its internet/intranet offerings and aimed at combating the mounting threat from local players such as British Telecom.
The company claimed that the partnership programme will generate #5 million in revenues this year and increase its number of partners from 15 to 50 by the end of the year.
The move follows the recent pulling off the streets of it sales force into telemarketing in a bid to cut costs.
A representative for the company said: ?Margins are very very weak. On a consumer basis a lot of ISPs are not making any money. The battle between ISPs and telecoms companies is pushing costs down to a minimum. By working through the channel we have access to smaller business that we previously would not have been able to access.?
The company already has a relationship with Computa-center but intends to strengthen its indirect channel by taking on resellers to integrate internet services, provide solutions and design Web sites.
In a bid to cut costs PSInet brought all its UK sales people in-house two months ago, which resulted in a turnover of #1 million for May, according to the representative.
A profit is expected to be announced in its interim figures due to be released in August, he added.
Infrastructure provider says international sales now make up 51 per cent of its revenue
Suzanne Chappell of TMS plans sailing venture after selling Oxfordshire-based TMS to acquisitive Chess
Withdrawal of credit insurance by some providers a 'reflection' of current challenge facing IT sector, according to MD Steve Soper
SMART's UK managing director joins Lenovo to boost SMB business