A new study from Sage, the leader in accounting, financial, HR and payroll technology for small and mid-sized businesses, has revealed a significant shift among technology channel companies, which are moving from a one-and-done, buy-and-install approach to becoming strategic advisors to SMBs, unlocking significant growth opportunities and paving the way for greater digital agility.

55% of IT resellers now prioritise strategic advice over sales
54% of channel companies champion innovative tech adoption
73% of IT resellers believe SMBs commit to investment in digital agility as a high priority

The report, Small and medium-sized business demand for digital advisory services fuels IT channel growth, surveyed 2 800 technology channel decision makers globally, revealing a pivot from traditional sales to strategic, advisory-driven relationships. This transition is not only enhancing digital agility among SMBs but is also opening up substantial growth avenues for technology resellers.

“In South Africa, resellers consider financial data, analytics technologies and reporting tools particularly useful for providing advisory services to customers, with 77% endorsing their importance. Furthermore, 68% of South African SMBs identify cybersecurity technology as the most critical tool for enhancing digital agility in the channel industry over the next 18 months. This is closely followed by a strong emphasis on AI and automated services (63%) and databases and CRM systems (57%). The data clearly positions cybersecurity as a crucial pillar for building digital agility, with the overwhelming majority of South African resellers highlighting its importance,” says PJ Bishop, vice president for partners, alliances and accountants, Africa and Middle East, Sage.

From a global perspective, the research highlights that more than half (55%) of technology resellers have shifted their focus towards providing strategic advice and services, aiming to improve SMBs’ ability to swiftly adapt to market shifts, evolving customer demands and new technological breakthroughs.

Notably, 73% of IT resellers believe SMBs consider investing in digital agility as a high priority, seeing it as a way of driving business growth (29%), enhancing competitiveness (24%) and increasing efficiency (23%).

“These findings mark a significant shift within the channel. The move towards more personalised solutions and stronger customer relationships is revolutionising our support for SMBs,” says Sippora Veen, vice president for global partner marketing, Sage.

“With the adoption of advanced technologies like AI, and a commitment to building skills, we are better positioned to help SMBs face challenges and thrive in the digital era. This collaboration is essential for fostering innovation and mutual growth.”

Key findings include:

Adoption of innovative technologies: 54% of channel companies are focusing on driving the adoption of innovative technologies for SMBs to help them become more digitally agile, indicating their focus on ensuring SMBs not only access but effectively utilise technology to enhance responsiveness and competitive edge in a rapidly changing market.
Digital agility of SMBs: 54% of SMBs are recognised as “fairly digitally agile” by channel leaders, highlighting their quick adoption of technologies that enhance efficiency and customer experience. Continuous investment in digital tools and training, supported by channel partners, is essential for maximising the benefits of a digital-first approach.
Critical technologies: 58% of channel leaders believe that AI and automated services are crucial for fostering digital agility, followed by cybersecurity solutions (57%) and cloud/SaaS applications (47%). Focusing on these areas can enhance SMB efficiency, security and scalability.
Shift to advisory roles: Channel leaders are moving into advisory roles to use technology and data analytics for personalised solutions (58%), build stronger customer relationships (55%) and offer unique services to meet changing customer demands (52%). This shift underscores the industry’s focus on innovation and customer-centric strategies.
Challenges when providing advisory services to SMB customers: Keeping up with fast-paced technological changes is a key challenge for 46% of channel companies. Additionally, 44% face resistance from SMB customers who either don’t see the value in advisory services or prefer traditional sales methods, and 36% struggle with a lack of employees with the right skills. These issues highlight the need for continuous learning, better communication, and investment in skilled talent. Yet, 90% of channel leaders are confident in SMBs’ ability to achieve digital agility within the next year, reflecting strong optimism for their potential to effectively adopt digital solutions, which presents growth opportunities for channel partners and supports an ecosystem that bolsters SMBs’ digital capabilities and competitiveness.

“Having spent over 25 years in the channel, I have observed a shift within the SMB market propelled by the need for growth, competitiveness and efficiency. More SMBs are now prioritising digital agility to remain competitive and resilient in a constantly evolving business environment,” says Susan Vincent, MD, Baker Tilly, a Sage partner.

“As channel leaders, we must shift towards a consultative approach to support our customers and help them activate the latest technologies with ease. It’s time to adapt and stand out.”

Sage’s research underscores the importance of deepening collaboration between IT resellers and SMBs to fully harness new technologies and enhance resilience against market changes. By focusing on areas such as cybersecurity, digital transformation and operational efficiency, IT resellers can boost their growth while helping SMBs navigate these challenges successfully.

“Digital agility is the new currency for SMBs, and channel partners play a critical role in enabling businesses to leverage innovative solutions that optimise operations, improve efficiency and enhance profitability. With technology evolving so quickly, it’s crucial for us to stay ahead of the curve and adopt the correct tools as soon as possible. AI and cybersecurity are key in driving our digital agility and we rely on our IT suppliers to help us identify and deploy the right solutions that are tailored and adaptable to our growth strategy. With their support and invaluable advice, we can navigate the challenges of digital transformation much more easily and increase our ability to pivot as necessary in a challenging economic landscape,” says Robert Colelli, managing principal, operations, Cresa Toronto.

About Sage
Sage exists to knock down barriers so everyone can thrive, starting with the millions of small and medium-sized businesses served by us, our partners and accountants. Customers trust our finance, HR and payroll software to make work and money flow. By digitising business processes and relationships with customers, suppliers, employees, banks and governments, our digital network connects SMBs, removing friction and delivering insights. Knocking down barriers also means we use our time, technology and experience to tackle digital inequality, economic inequality and the climate crisis.

Summary of the research methodology
The research questioned 2 800 decision makers in the tech industry whose companies resell tech and IT supplies/services for various businesses in Canada, France, Germany, Portugal, South Africa, Spain, the UK and the US. The interviews were conducted in April and May 2024. This online survey was conducted by market research company OnePoll, in accordance with the Market Research Society’s code of conduct.