IT spending by banking and securities firms in New Zealand will experience the highest growth rate across the region in 2017, increasing 6.4 per cent to reach $1.7 billion.
Within the Asia Pacific region, New Zealand is the fourth largest vertical market in terms of IT spending after the communications, media and services sector, manufacturing and natural resources and the government sector.
Meanwhile across the Tasman in Australia, IT spending by banking and securities firms is forecast to reach $14.8 billion in 2017, an increase of 5 per cent from 2016, representing the third largest vertical market.
Findings from research analyst firm, Gartner, report that the collective mature Asia/Pacific region will reach $67.1 billion in 2017, an increase of 5.4 per cent from 2016, according to Gartner, Inc.
Spanning Australia, Japan, New Zealand, Singapore and South Korea, this forecast provides total enterprise IT spending for internal spending and spending data on data centre systems, devices, software, IT services and telecom services.
“The banking and securities industry is focused on investing in advanced data and analytics, as new tools like artificial intelligence are becoming popular in this industry,” Gartner principal research analyst, Moutusi Sau, said.
According to Gartner, the software segment will grow the fastest at 8.5 per cent in 2017, as firms in the banking and securities industry invest more in applications, infrastructure and vertical-specific software.
Specifically, applications is growing the fastest in this category contributing 12.4 per cent growth in 2017.
More broadly, IT spending in New Zealand reached $11.5 billion in 2016, representing an increase of 1.4 per cent from 2015.
As reported by Reseller News, Kiwi businesses increased investment across data centre systems, software, IT services and communications services, with a dip in device spending across the country.
Despite $US declines due to currency fluctuations, IT spending in New Zealand bucked the global trend, with worldwide IT spending totalling $US3.49 trillion in 2016, a decline of 0.5 per cent over 2015 spending of $US3.5 trillion dollars.