Major UK resellers and solution providers bounce back

The UK’s largest resellers and solution providers have rebounded well after a torrid period of decline over the previous two years. Revenues of the top 250 resellers have grown by an average of 10.73% since 2011 to £46.64 billion (€58.55 billion). Productivity has also increased, with the growth in revenue being achieved with 242,818 employees (down -4.4% on the number for 2011). As a result average revenue per head has leapt an impressive 15.86%, from £165,778 to £192,067 in the last year.

Although some of the growth has been the result of consolidation within the industry, a total of 22 fast growing new entrants to the top 250 have also helped to contribute to the revenue rise. Behind the figures, there are a number of complex trends at work. Sharp declines in areas such as PC and Server sales have though been more than offset by growth in others from mobility solutions to managed services. The proportion of companies now providing cloud/managed services has now increased to 68% (up from 56% in 2011).

“This extremely strong performance by the UK’s leading resellers and systems integrators is testimony to the strength and resilience of the channel,” says IT Europa’s Managing Director, Alan Norman. “Far from being killed off by the rise of cloud and on-line delivery of products and services, many channel organisations seem to be embracing new supply models to help increase efficiency and drive growth.”

Market and economic conditions remain challenging however, with no fewer than 113 of the top 250 seeking to generate additional growth from overseas markets (up 4% from 109 in 2011). Of those seeking business overseas, Europe remains the preferred geography for 65% (up 3% on 2011) while those seeking to generate revenues in the US has decreased to 9% (from 7%) reflecting the impact of adverse exchange rates.

These are some of the conclusions that can be drawn from the new Premier 250 – Top UK ICT Resellers & Solution Providers database report, which is published today by IT Europa, the leading European channel intelligence organisation. The report provides detailed profiles of the top 250 resellers of information and communication technologies in the UK, ranked by revenue.

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