WE ARE ACUTELY AWARE OF THE GENERAL BUSINESS SENTIMENT IN INDIA AND ARE BRACING FOR A TOUGH H2 BUT THE OVERALL OUTLOOK REMAINS CAUTIOUSLY OPTIMISTIC
Alain Monié, CEO, Ingram Micro India, discusses his organisation’s performance in the financial year 2018-2019
What is your view of the performance, so far, of the Indian ICT industry in 2019? We have been pleasantly surprised by the first couple of quarters in 2019. We all knew things would be volatile, with multiple macroeconomic factors like the election, global trade uncertainty and its consequent impact on domestic ICT consumption etc. And while all these factors have indeed made their presence felt, we are happy to report robust topline and bottom-line performance in 2019 so far. That said, we are acutely aware of the general business sentiment in India and are bracing for a tough H2 but the overall outlook remains cautiously optimistic.
What is your view on FY 19 in terms of business and financial performance? Please share any two key highlights?
FY 2019 has seen many socio-political events like the elections, budget, industrial slowdown, global trade conflicts etc., all of which impacted the industry to varying degrees. However, we see pockets of growth largely due to factors such as: • Demand from Tier 2 and Tier 3 cities • Adoption of Hyperconverged infrastructure
What is the way ahead in an environment of declining margins, softer IT spending and tighter outsourcing, and GDPR regime, in the traditional verticals?
The easy availability of cloud-based technologies and the proliferation of SMAC has led to a degrowth in traditional vertical segments. With emerging and advanced technologies including HCI, servers & storage, SD-WAN, cloud, IoT and AI seeing increased adoption, partners must consider re-evaluating their business models to stay relevant. Customers today prefer to work with channel partners that offer end-to-end value-added services including IT assessment, migration, pre-sales and postsales services. Building a services practice is also a great way for partners to improve customer stickiness, enhance CLV and maintain healthy margins.
What is your business outlook for FY 20, and what are the key focus areas?
Industry trends are key drivers for any business, and we have spent a considerable amount of time evaluating these trends to make the right investments and serve our partners and customers better. Our key focus areas include cloud, cybersecurity, advanced solutions and IoT. We have also invested in building our capabilities around IT asset disposition and e-commerce. Additionally, partner enablement continues to be a key priority for Ingram Micro and we have rolled out several initiatives including flexible financing options, consulting services, sales training and partner incentive programs.
What is the influence of the emerging technologies? How will it impact the next couple of years?
Technology doesn’t just play a ubiquitous role in our lives but has revolutionized the way we work and do business. Organizations are rapidly adopting emerging technologies like cloud, AI and IoT to solve traditional business problems, improve efficiencies. enhance customer experiences, streamline operations and increase profitability. The benefits that these technologies deliver have compelled enterprises to rethink business models and processes. With the demand for emerging technologies increasing, channel partners will have to adapt existing business models to thrive in the digital economy.