IDC report: channel partners are investing in AI to drive specialization

The latest research from IDC and Sage details how high-performing partners are leveraging the latest technologies to shape the future of the channel

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The IT channel is being shaped by a new wave of high performing partners that are finding success through AI adoption, scaling, and a focus on measurable customer outcomes, the latest research from IDC has revealed.

Commissioned by accounting and HR software provider Sage, the study quizzed more than 2,000 software resellers across the US, UK, Spain, Germany, France, Canada, Portugal, and South Africa.

The findings show that the highest performing channel partners – defined as those delivering 20% or more revenue growth in the last two years – are the ones successfully navigating the industry shift from transactional sales to outcome-driven value with long-term strategies that focus on scale, specialization, and trust.

“High performing partners are building growth on innovation that delivers outcomes,” explained Stuart Wilson, senior research director, EMEA Partnering Ecosystems at IDC. “They lead with customer outcomes, invest in AI as a differentiator, and run disciplined, services-led models with clear vertical focus.

“This cohort is translating technology into higher margins, faster time-to-value and stronger customer advocacy. Their success is repeatable, and their model is setting the pace for the next evolution of the channel.”

Channel shift

As the IT channel continues to evolve in the face of rapidly evolving technologies, the most successful channel partners appear to be those combining outcome-driven value with AI adoption.

According to the survey findings, more than two thirds (70%) of global channel partners have implemented an AI practice and resell software with embedded AI capabilities. For high performing partners, that figure rises to 87%.

According to the survey findings, more than two thirds (70%) of global channel partners have implemented an AI practice and resell software with embedded AI capabilities. For high performing partners, that figure rises to 87%.

In the UK, businesses are reaping the rewards of this adoption, with over half (52%) stating that AI has bolstered their service delivery, while 70% reported that most of their customers already see measurable results across their organization.

In addition to reselling AI, partners are also embedding these new capabilities into their service models to automate delivery and facilitate gains such as faster workflows, reduced errors, and improved compliance, with 37% of UK partners ranking AI-focused services as a top three strategic priority.

Specialization as a growth driver

Of those surveyed, almost two thirds (63%) reported double-digit yearly growth, rising to 70% in the UK, despite economic headwinds. The vast majority of high performing partners are also targeting high growth this year, with 84% aiming for 20% or higher.

Channel firms are turning to specialization to differentiate and fuel these growth ambitions, with 70% of high performing partners offering micro-vertical solutions to solve sector-specific challenges. According to IDC and Sage, these offerings enable customers to get set up and drive value faster while avoiding the costs traditionally associated with customizations.

In terms of software vendors, seven in ten partners emphasized working with brands with a strong reputation in order to highlight ambition and win trust, while over a third (35%) cited working with a “top-tier” brand as the most important factor in helping their business compete in competitive markets.

Elsewhere, a third of high performing partners were found to be investing as a company-wide strategic policy to improve specialization and drive growth through activities such as building new services, deepening vertical expertise, and developing proprietary IP.

“Partners who win put customers first, specialize where it counts, and apply AI to real problems,” commented Juha Harkonen, vice president of Partner Ecosystem at Sage.

Daniel Todd

Dan is a freelance writer and regular contributor to ChannelPro, covering the latest news stories across the IT, technology, and channel landscapes. Topics regularly cover cloud technologies, cyber security, software and operating system guides, and the latest mergers and acquisitions.

A journalism graduate from Leeds Beckett University, he combines a passion for the written word with a keen interest in the latest technology and its influence in an increasingly connected world.

He started writing for ChannelPro back in 2016, focusing on a mixture of news and technology guides, before becoming a regular contributor to ITPro. Elsewhere, he has previously written news and features across a range of other topics, including sport, music, and general news.