Is Compass on the verge of a split?

With the recent controversial ban over Rashi Peripherals (RP) and Savera Marketing Agency (SMA) from Confederation of Indian IT Associations (CIITA) raging on in the east, series of tirades have hit east India’s largest IT channels association Computer Association of Eastern India (Compass) in favour and against the ban leading to speculations of a break inside Compass.

According to sources in Compass, some members have opposed the ban stating that “no association can ban or force any company to shut down their offices” and have presented legal cases of a similar stature where dealer associations in the tyre and cement industries had to undergo a monetary penalty based on a recent ruling from Competition Commission of India.

Moreover the same sources said that “there is of course a possibility that a splinter group (inside Compass) might form another association in the east”.

The primary issue over the speculated split in Compass rose from the complaint that Compass is not heeding to thee problems and issues of the small-scale IT partners and the recent issue of ban fuelled the controversy.

An official in the association said, “Although CIITA has asked its members to refrain from billing from RP, I am continuing with the billings. Why would I stop it?”

When asked about the implication of the CIITA circular about “must refrain”, the official added, “I haven’t received any calls from either CIITA or Compass asking me of stopping the billings (to and from RP) and neither have I been pressurised”.

However, the issue of the ban have started taking its toll as a group of IT dealers inside Compass are considering breaking free from the association questioning the legality and the monetary implications of the ban.

When The DQ Week contacted Pradeep Biyani, president, Compass over the speculated split, he said “I am unaware of any such talks about a possible split in Compass”.

However, other key officials including past presidents of Compass are wondering whether the “splinter cell uprising” has been instigated from a third party and have questioned the involvement of the affected parties from the ban to prompt members of Compass into rebelling.

Furthermore, debates related to the ban and a possible break-up in Compass are raging on in the social media as well in the group Voice of Small IT Dealers in Eastern India whereby a member of the group has stated that “Before imposing any Ban on its members, COMPASS should call a general meeting of its members and take their views on the subject matter”.

Further, about the ban, the same member questioned, “If Compass is serious about protecting interest (of) small channel partners, Compass should also investigate the misuse of data by other companies (as well). There are lot(s) of members of Compass who misused the database of end users. If Compass wants members’ opinion, why not it call (for) a General Meeting and take members opinion in the open house. Collecting signature from selective members is not the solution.”

Also, about the possibility of a split, Biyani added, “New things are being implemented in the association and there has been a change of committee members. We all know that there is always some friction when changes are implemented and I am sure that this supposed issue will be sorted out unanimously”.

As speculations are rising over the split in east India’s third largest association and the country’s third best association (Compass has been ranked third by CyberMedia Research in the Indian Association Ranking 2012), members in the association have taken a “wait and watch” approach to the problem and hoping to see things being resolved amicably”.