NEWS ANALYSIS: IT advice will lead to trouble

Mikacom?s conflict with Rochdale Business Link over IT services may be the first of many such clashes

The problems experienced by Rochdale-based dealer Mikacom with its local Business Link have highlighted a potential mine-field in the IT industry.

The government has been keen to get private and public sector money working together and has set up a number of specialist agencies, such as the Business Link network, to facilitate this. Business Links are established in partnership with Chambers of Commerce, Training & Enterprise Councils and the private sector.

Business Links were initially backed by Department of Trade and Industry funding. But a recent government directive has told them they must pursue more income-generating activities ? and is the reason for the perceived conflict in Rochdale.

The SME market has been identified as a major potential growth area in the next few years. But small firms? take-up of IT depends on them getting advice they feel comfortable with before making their investment. Many will seek such advice at the local Chamber of Commerce or Business Link.

Mikacom has alleged that Rochdale Business Link is using its public sector funding to subsidise a range of services from its IT department and using its role as an advisory body to cloak these commercial activities.

This sort of conflict is likely to resurface if dealers continue to feel disadvantaged by organisations like Business Link.

Mikacom is run by husband and wife team, Mike and Kate Hoggart. Kate Hoggart feels strongly that Business Link is a real threat to dealers. ?It portrays itself as being impartial and independent, but how can this be the case if its advisers are also selling the services of Business Link?s IT department? Business Link enjoys financial benefits that no other business gets. It also assists companies who issue tenders for IT equipment, which means it gets to go through other dealers? lists of products, prices and terms. No one else is ever in that sort of position over its competitors.?

Following Mikacom?s complaints, Rochdale Business Link stated it will review how it markets IT services and that it will produce a set of guidelines to avoid future misunderstandings.

Such conflicts are almost certainly unavoidable while the private sector and government-backed agencies learn to accept each other?s role in the market.

Business Link may find it has to tone down its aspirations to become a solution provider, and dealers may find it makes more sense to work with such agencies than against them.