GSI's represent a significant revenue opportunity for small, innovative, but unknown vendors. However you need to know how to engage and motivate them to collaborate with you. Here is our guide for tech start-ups partnering with GSI's
Who are Global System Integrators?
Global System Integrators (GSIs) are global consulting and advisory firms (think Accenture, Cognizant, Deloitte etc). They have practices covering all aspects of business and technology. They wield substantial power within the business ecosystem. Their influence stems from their broad executive networks, long standing customer relationships, and a pivotal role in shaping organisational strategies for large enterprises. GSI’s often serve as trusted advisors to their clients, offering business solutions that integrate multiple systems, streamline operations and deliver tangible business outcomes.
What are the advantages for start-ups working with GSI’s
For small and innovative vendors looking to break into larger customers and new markets, GSI’s represent a significant revenue opportunity due to their extensive client base and their ability to drive adoption of new technologies. This "nearbound" approach brings key advantages:
Access to enterprise customers, increased account intelligence and big deal revenues are enabled via GSI relationships. They bring access to decision makers, strategic influence and the ability to find qualified sales opportunities across international markets.
Becoming a key enabler or part of a GSI service offering drives not one deal, but a pipeline of deals. When the GSI sells their service, you sell. If you align well and educate well, the GSI will effectively sell for you. Often without demanding a margin.
Introduction by a trusted GSI boosts your reputation and brand trust immeasurably. Your product will also be positioned as part of a whole solution including business change, process re-engineering and implementation: a more compelling customer proposition.
What is the DNA of a Global System Integrator
For vendors aiming to leverage the influence and reach of GSIs, it's crucial to understand how to effectively engage with them. They are not, and will not behave like a reseller (VAR).
This understanding starts with a deep knowledge of the GSI's business model, strategic objectives, and client base. GSI's are large global organisations, but not all are run centrally, often there are local centres of excellence that act globally and regions run by senior stakeholders that are autonomous. Navigation can be complex.
GSI sales execs, “client partners”, are responsible for huge revenue targets that are retired from placing consultancy resources into customer projects. These may be senior advisory, technology integration, business change specialists and will be pulled from global resource pools for which they are cross-charged. A percentage of your license revenue is not relevant to them, there is no way to retire their target with it and it will likely be a rounding error in terms of revenue. What they care about is selling more consultancy engagements.
Top tips for tech vendors partnering with GSI’s
Sales cycles with GSIs can be lengthy as they are huge deals and require thorough evaluation, senior approvals, and alignment with client needs. Managing these extended timelines requires patience and strategic planning. You should be prepared for this and understand that it's a normal part of the process when working with GSIs.
Successful engagement therefore, is not about pitching a product, but about demonstrating how your solution aligns with their service offerings and addresses their clients' business pain points. GSI offerings tend to be managed by the centres of excellence, so it’s important to ensure that you are talking to the right people, else you can waste a lot of cycles.
Building relationships with the right stakeholders within the GSI organisation is critical. These relationships will open doors to collaborative sales opportunities and joint ventures. This can take time and investment resulting in a need for a long term engagement strategy and most of all patience. Here are some factors to consider:
Complex Decision-Making Processes: GSIs have complex decision-making structures involving stakeholders across global regions. Navigating these and gaining consensus can be time-consuming and challenging. Our advice, find and leverage an internal champion.
Stringent Vendor Requirements: GSIs have rigorous vendor qualification criteria, including technology compatibility, scalability, and proven track records. Meeting these requirements can be demanding for smaller vendors. Your market differentiation and disruptiveness are your best tools here
Competing Priorities: GSIs typically work with various vendors and technologies. Getting attention and priority for your solution amidst competing vendors can be a significant challenge. Align your product with high priority GSI offerings and market trends to shine.
Navigating the complexities of GSIs also involves demonstrating your value proposition proactively. Rather than expecting them to act as resellers, vendors should position themselves as enablers of innovation and differentiation within the GSI's ecosystem. This approach aligns with the GSI's objective of providing cutting-edge solutions to their clients and positions the vendor as a valuable ally in achieving mutual business success. See our article on nearbound marketing for more details
Moreover, you should be prepared to invest in educating GSIs in the joint value to customers, ensuring that GSI teams are equipped to promote your solutions in their client engagements. By fostering a collaborative relationship based on mutual value and shared goals, you can maximise the potential of partnering with GSIs and capitalise on the vast market opportunities they offer.
This approach does not require vast financial investment. It is an investment in time and tenacity. Network with the right people, find internal champions, show how you expand their opportunities and value to their customers. As GSI pursuit is time intensive, our advice is to start as early as possible. Only pick one or two best aligned GSI’s to target, qualify your progress and keep up momentum. It is also prudent to set your own exec expectations correctly to give you a runway to show success
In conclusion
GSIs present significant opportunities for small tech companies seeking to expand their market reach. Success however, hinges on adopting a strategic approach to engagement and collaboration.
Vendors can effectively navigate the complexities of GSI’s by understanding the DNA structure of the target partner. invest time to collaborate with the right people and align their offerings to complement GSI service portfolios.
Companies who are able to achieve this, increase brand awareness, close larger deals with global brands and win against their competition. Becoming part of a GSI service offering opens a pipeline of opportunities jointly sold with a global salesforce.
About Us
Market Access Partners is a boutique management consultancy based out of London. We offer specialist services to tech vendors to help them navigate, set strategy and leverage partnering whilst avoiding the pitfalls.
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