Menu
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!

Or

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

Featured

Slideshows

Reseller News welcomes industry figures for 2019 Hall of Fame lunch

Reseller News welcomes industry figures for 2019 Hall of Fame lunch

Reseller News welcomed 2018 inductees - Chris Simpson, Kendra Ross and Phill Patton - to the third running of the Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed the changing landscape of the technology industry in New Zealand, while outlining ways to attract a new breed of players to the ecosystem. Photos by Gino Demeer.

Reseller News welcomes industry figures for 2019 Hall of Fame lunch
Upcoming tech talent share insights at inaugural Emerging Leaders Forum 2019

Upcoming tech talent share insights at inaugural Emerging Leaders Forum 2019

The channel came together for the inaugural Reseller News Emerging Leaders Forum in New Zealand, created to provide a program that identifies, educates and showcases the upcoming talent of the ICT industry. Hosted as a half day event, attendees heard from industry champions as keynoters and panelists talked about future opportunities and leadership paths and joined mentoring sessions with members of the ICT industry Hall of Fame. The forum concluded with 30 Under 30 Tech Awards across areas of Sales, Entrepreneur, Marketing, Management, Technical and Human Resources. Photos by Gino Demeer.

Upcoming tech talent share insights at inaugural Emerging Leaders Forum 2019
Show Comments