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May 2018 - Market Presentation - Doc # AP43787918

2H17 Country Report on IT Services — New Zealand

Author: Chayse Gorton
Market Analyst, IT Services
On-line Presentation

Abstract

This IDC Presentation provides a detailed analysis of the market and competitive landscape in IT services in New Zealand from July to December 2017 (2H17). It covers the market size movements and growth trends in each of the macromarkets (i.e., project-oriented, outsourcing, and support and training services) as well as the key industries, such as finance, manufacturing and resources, public sector, distribution and services, and infrastructure. The report also provides a market and vendor analysis of 3rd Platform technologies as the key market drivers. The competitive analysis section includes key strategies and activities of large global and local IT services providers in the market.

The data and insights within this presentation are a part of the "Asia/Pacific Semiannual Services Tracker" research, which covers 14 foundation markets across 14 Asia/Pacific countries.

New Zealand's IT services market growth remained stable as growth was split between slow-growth 2nd Platform markets, such as traditional outsourcing, and high-growth services opportunities related to 3rd Platform solutions — cloud, artificial intelligence, Internet of Things (IoT), and blockchain — each attracted attention during 2H17.

The 2017 elections took place in September. Because of the election, a new Labour-led government was formed, backed by the New Zealand First and the Green Party. Government-related IT services deals have slowed down during the government changeover period because of budget restrictions and procurement time frames.

Digital enterprises' top 3 key priorities in New Zealand are to modernise core business systems, use digital strategies to reduce operational risk, and identify new customer benefits/value opportunities.

In the project-oriented market, organisations are increasing their overall IT and network consulting spend as they seek to identify optimal ways to embrace their digital transformation journeys.

The outsourcing market continues to grow as more organisations shift to off-premise models. This shift is being driven by many organisations, believing that a high portion of transformational growth lies in the infrastructure space. Hosted application management is being stimulated by rising application maintenance needs as well as needs for application transformation and modernisation efforts that enhance and revitalise the existing legacy systems.

The deployment, support, and training markets are undergoing an evolutionary phase. The software market is transitioning from an on-premise model to off-premise, one where software vendors are utilising a SaaS-first innovation and delivery model. In the hardware market, deployments of traditional solutions, such as PCs and tablets, have stabilised. IoT presents an opportunity for hardware growth, and it also drives downstream spending on software and services.

Coverage