Menu
NZ IT services revenue grows 1.9 per cent in 2018

NZ IT services revenue grows 1.9 per cent in 2018

Researcher IDC says systems integrators are receiving the lion's share

The local IT services market is healthy with systems integrators in demand, says IDC.

The local IT services market is healthy with systems integrators in demand, says IDC.

New Zealand IT services revenue grew 1.9 per cent year-on-year, reaching $3.4 billion in 2018, according to market tracker IDC.

That growth rate was below the 2.8 per cent IDC forecast last year.

Managed services revenue made up the largest portion, however, the project oriented market achieved the highest year-on-year revenue growth.

The largest revenue shares in the project market in 2018 went to system integration followed by custom application development services.

"Instead of developing new applications from scratch, many organisations are utilising service providers' systems integration skills to integrate SaaS applications or their custom development skills to modernise existing applications," Chayse Gorton, A/NZ market analyst for IT services, said.

Source: IDC
Source: IDC

Gorton said as organisations transition from on-premise software deployments towards cloud-based SaaS models, the need for systems integration services tends to become imperative.

"Organisations that implement SaaS solutions often have investments in on-premise software, hence it is imperative that cloud data can integrate with these on-premise applications."

Many New Zealand organisations have taken a lift and shift approach to cloud software deployments, Gorton said.

This can provide benefits associated with reducing on-premise infrastructure costs but without rearchitecting the application the full cost benefits of the cloud may not be realised and performance issues may arise. 

IDC believes that the trend of modernising existing applications will continue throughout 2019. However, when an existing application comes to the end of its life, organisations will, in many cases, be inclined to shift to a SaaS model.



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 it servicessoftware developmentIDCsystems integration

Brand Post

How to become the best IT MSP

This article provides guidance for managed service providers (MSPs) that want to grow their business. It is also useful for any IT service provider looking to move from the break-fix model to managed IT services.

Featured

Slideshows

Reseller News Innovation Awards 2019: meet the winners

Reseller News Innovation Awards 2019: meet the winners

Reseller News honoured the standout players of the New Zealand channel in front of more than 480 technology leaders in Auckland on 23 October, recognising the achievements of top partners, emerging entrants and innovative start-ups.

Reseller News Innovation Awards 2019: meet the winners
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
Show Comments