SA’s already volatile ICT channel has entered a phase where pressure is no longer cyclical but structural, says Andrew Harris, chief sales and marketing officer at DCC Technologies.
“Traditionally, the channel has moved through cycles. Demand softens, supply tightens, then things correct. What we’re seeing now is different," says Harris.
"The pressure is more persistent and built into how the market operates. Margins are tighter, credit is more constrained, supply chains remain unpredictable and customers are more demanding. These aren’t short-term disruptions. They are becoming part of the operating environment. That means businesses can’t wait for conditions to improve. They need to adapt how they operate and how they partner.”
In this environment, decisions about pricing pressure, constrained supply and tighter credit face greater scrutiny, says Harris. The difference between short-term reaction and long-term discipline becomes increasingly visible.
He believes the partners who navigate difficult periods most effectively apply the same standards in tough conditions as they do in stable ones.
“It comes down to discipline and consistency. It’s easy to talk about service, transparency and reliability when things are running smoothly. The real test is whether those standards hold when there’s pressure,” adds Harris.
This pressure can overwhelm operators who are eager for advantage, compelling them to act without forethought.
“A short-term win achieved at the expense of a partner relationship rarely holds its value. By contrast, decisions that prioritise long-term alignment tend to compound. They may not always deliver the fastest outcome in a single quarter, but they build a level of reliability that partners factor into every future engagement.”
This pressurised environment also affects the distributor-reseller relationship, says Harris.
“For many of the smaller resellers that form the backbone of the South African channel, that reliability is not theoretical. It directly affects how they plan, how they manage cashflow and how they support their own customers. In a constrained market, knowing what to expect from a distributor becomes a practical advantage. This is where disciplined trading matters.”
Managing realities using AI
Mark Walker, director at technology consultancy T4i, says the local ICT channel is evolving quickly, with higher client expectations on speed and quality of service, complex supply chains and widely ranging product and service sets.
“Managing these realities has always rewarded companies that designed systems to reduce complexity, increase speed and reduce risk by building trustworthy, enduring relationships between partners, suppliers and customers," says Walker.
"The winners in the South African ICT channel have continually mastered these attributes in a challenging local ecosystem and are now using AI-based tools and agents to further enhance their success.”
Walker adds that AI's ability to manage repetitive tasks, automate logistics and warehousing, and audit real-time commercial performance will set a higher bar in future. Channel players also have the potential to offer AI-based service offerings.
“This means selling outcomes, specialising vertically, building AI and security as recurring services, and treating transformation as commercial advantage rather than compliance overhead. Channel players who use this technology wisely, with strong long-term strategies and trustworthy human guidance, will determine their success.”
In early April, Johan Steyn, AI expert and founder of AIforBusiness.net, described AI as “the greatest opportunity and the most complex challenge the South African tech channel has faced in a generation”.
He said: “AI does unlock real growth: smarter demand forecasting, leaner supply chains, faster partner enablement. But it also exposes every weakness in a business − fragmented systems, skills gaps, unclear strategy and leadership that has not yet asked the hard questions. The channel operators I see succeeding are not necessarily those with the most sophisticated tools; they are the ones who have built the human capability and organisational agility to absorb change at pace.”
Harris points out that as technology accelerates and more of the channel becomes automated, the human element of doing business has not diminished. If anything, it has become more valuable.
He cites the 2025 Edelman Trust Barometer, saying it reinforces this shift: trust is increasingly tied to a company’s ability to act predictably and transparently in uncertain conditions.
“Systems and processes matter, but in uncertain conditions, people look for clarity and accountability. If relationships are strong, conversations are more open. You can address issues earlier, manage expectations better and avoid surprises. Predictability doesn’t mean everything goes perfectly. It means partners understand how you operate, how you communicate and how you respond when things don’t go to plan,” Harris continues.
“All of these factors are adding complexity to the channel. AI is creating new opportunities, but also new expectations. Supply chains have improved, but they are still not as predictable as they once were. Skills remain a constraint across the industry. The common thread is that partners need more support, not less. For distributors, that means being easier to do business with, providing clearer visibility and helping partners navigate change without adding unnecessary friction.”
Harris asserts that while there is evolution and change, the fundamentals remain. “Reliability, transparency and strong relationships still matter. If anything, they matter more in this environment.”
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