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| India is the fastest growing major IT market in the world, projected to grow to USD 50 Bn by 2012 ( IDC India 2007 ). With the base of only 8.5 Mn PC units shipped in 2008-09 Fiscal year , and current PC penetration at 2 PCs per 100 people, the market is at the inflection point of super growth period. Market is expected to grow at 25% CAGR for the next five years. |
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| Indian IT distribution is fragmented with two large Distributors at the top catering to about 40% of the market and other 20 smaller distributors covering next 40%, balance is catered to by specialized, niche players. |
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| A nationwide distribution organization needs to be present with branches in at least 20 locations. Anticipated changes in taxation structure when India executes shift to GST regime shall bring in significant changes in the organization of distribution companies. |
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| Indian IT Distribution is credit driven . Risk management tools like Credit Insurance are now being deployed by leading players in the industry. Exchange controls on current account transactions restrict Multinational vendors ability to deploy adequate channel finance to support distribution, which strengthens the case for large, financially sound distributors. |
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Extensive network reach, ability to extend and manage credit and technically competent sales team are the key differentiators determining success
in Indian IT distribution. |
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