Dramatic growth predicted for leasing market

Sales of lease products through indirect channels are expected to increase dramatically by 2000 despite vendors? difficulties in getting resellers to sell or propose financing options.

The increased sales will result from demand for Wintel systems and shifts in the leasing market following a new focus on IT spend, claimed market research firm IDC.

George O?Connor, senior analyst with IDC, said vendors have traditionally experienced difficulties in getting resellers to adopt the sale of finance packages. But the growth among users for Wintel systems will increase indirect channels sales of leased equipment to 80 per cent by 2000 from 50 per cent in 1992.

?The leasing industry is trying to match itself to recent changes in technology and a different kind of channel player is now emerging.The leasing industry is changing and the channel is beginning to recognise the importance of the lease product,? he said.

He added that incremental channel revenues will be about $7 billion and as more money is spent on developing technologies, applications and services. Globalisation of companies will also lead to a larger leasing market, claimed IDC.