"Radical changes" due in channel behaviour

Report claims that generation of older directors are leaving as new, younger directors bring in different management styles to the channel

There is likely to be a “radical change” in channel behaviour, following a wave of new appointments at the top of the UK’s largest VARs.

This is according to the latest research from channel analyst, Plimsoll Publishing. The firm said the new appointments are likely in put even greater pressure on those with ageing boardrooms.

There have been 502 new appointments at director level, in 595 of the UKs largets resellers, in the past 18 months in an industry with 1,384 directors in total. According to Plimsoll, new blood represents a transformation of the industry, with new ideas, renewed focus and different ways of working.

It also seems that directors in the channel are paid well above those in other industries. The average director’s salary in the IT resellers industry was £93,154 last year UK director’s average salary is £68,500

Senior analyst at Plimsoll, David Pattison, said: “The reasons for the new appointments are varied. Some have been taken on with the direct objective of finding a buyer for the company, while others look as if they have been appointed to see through a management buyout. Whatever the reason, this wave of new blood is simply the start. More than 10 per cent of directors are over the age of 60, and we will see yet more evolution in the not too distant future.

“We all know that companies don’t do business with companies – people do business with people. But the people are changing and firms will be caught out and lose business as a result, simply because they took a customer, competitor or supplier for granted on the basis of an older management style.”