Auckland, New Zealand. New Zealand IT Vendors are expected to target specific vertical markets for which they can exploit their competitive strengths, as they look for innovative ways to compete in a shrinking and increasingly finicky market, according to a new study by IDC.

The report titled, New Zealand Vertical Markets 2009-2013 Forecast and Analysis reveals that the IT market in New Zealand will grow from NZ$5,911 million in 2008 to NZ$7,047 million in 2013 - a modest CAGR of 3.6%.

Louise Francis, senior market analyst, IDC New Zealand, says, "While cost savings will dominate IT decision-making in 2009, it is essential for IT vendors to focus on the minutiae of specific verticals rather than a generic approach. As a result targeted products and services will be a key competitive differentiator for the next twelve months."

Key findings in the report include;

• The top three New Zealand verticals in 2009, will be Government, Finance (banking, financial services and insurance), and Communications and Media. These will account for 54.8% of business IT spending in 2009 increasing to 56.9% of spending by 2013.

• In 2009, the highest levels of growth in IT spending will occur in the Utilities (5.2% year on year growth in 2009), Healthcare (2.8%) and Government (1.7%)

• Verticals which are expected to exhibit the biggest declines in spending include Finance, Manufacturing, Retail, Transport, Construction, Wholesale and Distribution.

• Partnerships will play a vital role for vendors pursuing vertical markets, as will leveraging partner knowledge and networks within vertical industries.

"However, a word of warning needs to be made to those seeking to pursue a vertical strategy," warns Francis. "Vendors falsely claiming expertise or attempting cover too many industries will risk being seen as lacking focus or commitment to specific verticals, which may potentially dilute their success."

On IDC’s website, www.idc.com, this media release relates to document #NZ387103S, New Zealand Vertical Markets 2009-2013 Forecast and Analysis.

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