Gartner says New Zealand technology spending will be $11.8 billion in 2017. That's up 2.7 percent from 2016. It's also a lot higher than last year's forward looking forecast from Gartner. The total spend is forecast to pass $12 billion in 2018.
Communications services is the top technology category in New Zealand. Customers will spend a total of NZ$4.4 billion
this year.The category includes consumer fixed and mobile voice and data services, enterprise fixed and mobile voice and
data services. It may be the biggest sector, but shows next to no growth.
Gartner expects software to be the star performer over the next year, with IT services also showing respectable growth.
Sales of devices and data centre systems will be flat.
Australians spend more however you cut it
New Zealand's numbers compare with a total IT spend of A$83 billion in Australia, almost eight times the amount spent
here. Australia’s communications services sector is around six times the size of New Zealand’s at A$26.8 billion.
Gartner expects both New Zealand and Australia to increase spending in the next year by more than the worldwide 2.4 percent forecast.
In part the difference between Australia and New Zealand can be put down to population size. Yet there's more to the
numbers than how many people live in each country. New Zealand's spend amounts to around NZ$2,500 per person, while
Australia's is almost A$3,500.
One possible explaination for some of the difference is that some Australian IT companies wrap New Zealand revenue into
local income. And there's a tendency on the other side of the Tasman to gold-plate projects. Yet you can't escape from
thinking Australians appear more willing to invest in technology. If you've any thoughts on this please comment below.
New Zealand: IT Spending Forecast (Millions of NZ$)
Segment
2016
2017
2018
Devices
1,659
1,734
1,724
Data Centre Systems
344
342
347
Software
1,363
1,499
1,647
IT Services
3,764
3,840
3,920
Communications Services
4,355
4,383
4,437
Grand Total
11,484
11,798
12,074
We're spending more on tech, but not as much as Australians was first posted at billbennett.co.nz.