NZ IT services edging towards $4B market

NZ IT services edging towards $4B market

Managed services set to dominate customer spending

Credit: Dreamstime

IT services revenue in New Zealand is expected to reach approximately $3.9 billion within four years, driven by increased cloud adoption among customers.

According to IDC findings, the market is predicted to grow at a compound annual growth rate (CAGR) of 2.8 per cent through to 2023, up from an estimated $3.4 billion in 2018.

“With regards to cloud adoption, organisations are prioritising innovation and security over cost and scalability,” said Chayse Gorton, market analyst for IT services at IDC.

Of note to the channel, out of the core IT services primary markets, managed services is predicted to achieve the highest CAGR through to 2023.

Gorton said a driver of this accelerated growth is that organisations are shifting from cloud for business and system optimisation to using the technology to "create competitive advantages" and in conjunction with other "innovation accelerators", such as the Internet of Things and artificial intelligence.

“Organisations are moving beyond questioning whether they should migrate to the cloud,” Gorton added.

“They are instead analysing the impact of not migrating to the cloud and how they can use cloud to create competitive differentiation by shifting digital talent from traditional in-house IT to innovation initiatives.”

Credit: IDC

Over the next five years, Gorton said New Zealand organisations will leverage IT services vendors and their partners to help implement and manage cloud solutions.

According to Gorton, this will "play a big part" in ensuring the continued growth of the IT services market locally.

“The challenge for IT services providers will be to differentiate themselves from competing vendors as cloud services become increasingly commoditised,” Gorton said.

“As a result, the ability to communicate their capabilities across complex digital ecosystems and to partner effectively will become even more critical.”

Follow Us

Join the newsletter!


Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags servicesIDCManaged Services

Brand Post



Malwarebytes shoots the breeze with channel, prospects

Malwarebytes shoots the breeze with channel, prospects

A Kumeu, Auckland, winery was the venue for a Malwarebytes event for partner and prospect MSPs - with some straight shooting on the side. The half-day getaway, which featured an archery competition, lunch and wine-tasting aimed at bringing Malwarebytes' local New Zealand and top and prospective MSP partners together to celebrate recent local successes, and discuss the current state of malware in New Zealand. This was also a unique opportunity for local MSPs to learn about how they can get the most out of Malwarebytes' MSP program and offering, as more Kiwi businesses are targeted by malware.

Malwarebytes shoots the breeze with channel, prospects
EDGE 2019: Channel forges new partnerships during evening networking

EDGE 2019: Channel forges new partnerships during evening networking

Partners, vendors and distributors reconnected during a number of social gatherings during EDGE 2019. The first evening saw the channel congregate for a welcome party at the Hamilton Island yacht club, while the main poolside proved to be the perfect stop for a barbecue on the final night.

EDGE 2019: Channel forges new partnerships during evening networking
Show Comments