ICT Industry in the New Zealand: General Profile and Insights

by Dan Irascu

ICT Industry in the New Zealand: General Profile and Insights

New Zealand registered one of the biggest IT growth rates in the world between 2015-2019, increasing its digital capabilities by 64% based on data provided by “iStart”. Based on the latest data provided by the New Zealand government, in 2019 there were around 21,000 IT companies in the country including multinational corporations, foreign investors, and local startups that enroll in the IT industry more than 120,000 professionals. 

According to PayScale the average salary in the IT sector is $3000 USD/Mo - making IT professionals one of the best-paid workers in the country. All these results were reached with the common effort of government and SMEs that created and developed an attractive business environment, especially in the digital sector. 

Why working with New Zealand IT companies

New Zealand's ICT companies have earned an international reputation for being flexible, resilient, adaptable, and entrepreneurial. Many high-profile projects have come out of the country’s ICT industry, thus improving the local IT industry's reputation on the global market and made out of New Zealand web and software companies a trusted IT hub. 

What to pay attention to when working with New Zealand IT companies

On the other hand, New Zealand IT companies face challenges with enrolling a new workforce. Since the demand for digital products and services is increasing from both local and international clients, there are not enough professionals to cover the requests. This leads to limited capacities of local IT companies in providing the needed services. 

Based on a report from 2019 released by International Data Corporation, 3 out of 10 projects of New Zealand IT companies are postponed or hung in the queue, which may be sometimes a frustrating experience for clients. However, New Zealand prefers rather attracting a workforce directly from other countries by offering facilities to professionals and convincing them to relocate to the country which may help companies to catch up and increase their working capacity. 

At the same time, timezone differences is another possible challenge. International companies need to be aware that we work a different timezone so we may need to take morning or evening calls

How reliable are New Zealand IT companies

New Zealand companies implement the highest standards not only in Technology but also in business. Having as a reference Australian and US companies, the local web and software agencies are well known for being flexible, resilient, adaptable, and entrepreneurial. 

Also, the level of project management in New Zealand IT companies is high enough to compete with regional and international corporations. 

How does the New Zealand IT industry relate to the neighboring countries?

On the regional level, the New Zealand IT industry competes with the Australian one, mostly. Both industries face the same challenges and have almost the same opportunities but rank differently in the global index. 

While both are confronting a shortage of tech professionals even with a well-developed IT infrastructure, Australia chooses to solve the problem with outsourcing while New Zealand companies rely on government policies that facilitate professionals from specific countries to relocate and find a job in the IT industry at one of the 21K+ companies present on the local market. 

Comparing the data from IDC research, New Zealand will probably be the winner with such an approach in the long run, while Australia has to increase its attractiveness to remain competitive. 

How is the Business Environment in New Zealand?

In 2020, New Zealand's business environment was characterized by its ease of doing business, as it ranked first out of 190 economies in the World Bank's Ease of Doing Business Index, highlighting its efficient regulatory framework, protection of property rights, and strong contract enforcement.

Additionally, New Zealand maintained a strong credit rating of AA from Standard & Poor's, reflecting its stable and well-managed economy. The country's low corruption levels, as indicated by its ranking of 1st in the Transparency International Corruption Perceptions Index, further contributed to its favorable business environment in 2021.

According to Andrew Hillstead from Psychoactive StudiosNew Zealanders are known for their innovation, initiative, and professionalism, especially in the ICT industry. Though because of the low population, finding specialists can be difficult. Some of the world's best web design agencies are based in New Zealand.

Wellington and Auckland - among the best cities for IT businesses in New Zeeland

Andrew also states that Wellington has the highest capita of creative and tech businesses in New Zealand. It is New Zealand's home of art, design, and IT, Wellington is small and mighty, while Auckland is much larger and may offer greater opportunities for some companies

Both Wellington and Auckland have a strong talent pool in the IT sector. New Zealand has a robust education system that produces highly skilled graduates in computer science, engineering, and related disciplines. The presence of reputable universities and technical institutes in both cities ensures a steady supply of qualified professionals for IT businesses. Furthermore, the cities' multicultural environments attract diverse talent, fostering innovation and creativity.

This article was created together with prominent figures and professionals coming from reputable  IT companies in New Zealand. Special credits: Andrew Hillstead

Dan Irascu

Head of Marketing

Researching, analyzing, and writing insightful stuff is what I do for a long time now at Mobiteam. At TechBehemoths, I put all my experience and knowledge work for IT companies and businesses and help them reach each other.