Insights into New Zealand’s information technology sector

New Zealand’s information technology sector contributes approximately NZ$8 billion to New Zealand’s economy each year.

The industry works closely with a range of New Zealand’s industries including health, transport and finance. As the country’s demand for IT is ever-changing, the information technology sector adapts accordingly, responding quickly and providing cost-effective solutions.

Innovative environment

With a background in innovation, New Zealand’s information technology organisations dedicate a substantial amount of time and effort to research and development. As an investor you’ll be interested to know that research and development costs are 100% tax deductible.

In 2008, New Zealand’s Information Technology industry increased sales of goods and services to NZ$19.3 billion. Within the IT industry, the largest export sales (NZ$281 million) came from electronic components.

Prosperous technology

New Zealand’s largest telecommunications provider, Telecom, employs 7,000 New Zealanders. Other major players include Vodafone and the market’s newest entry, 2Degrees. SKY Television is the top television operator and has close to 800,000 subscribers throughout New Zealand.

Existing markets, such as GPS production, strengthen New Zealand’s position within the global IT environment. By 2012, IT is expected to employ 125,000 people in New Zealand.

A high-speed future

This sector is projected to grow considerably as telecommunication organisations strive to improve New Zealand’s access to broadband. Government supported efforts have already begun to increase access in rural areas throughout New Zealand.

On an international scale, a proposed high-capacity, undersea fibre cable aims to connect Australia, New Zealand and the United States. The objective is to provide New Zealanders more bandwidth at a lower cost. A group of well-known New Zealand entrepreneurs plans to build the NZ$900 million cable by 2013.

Key Resources

We suggest looking at the following resources:

• New Zealand Information and Communication Technologies Group Inc is an industry association promoting ICT in New Zealand
• The Ministry of Economic Development provides insights into the Information and Communications Technology industry within New Zealand
• Industry Capability Network promotes information technology and provides a free sourcing service.