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May was a huge month for the tech sector in New Zealand, as several industry reports combined with TechWeek 24 to present some fabulous initiatives, results and highlight performance for the sector, despite the general economic gloom. And as Aotearoa heads into a winter that is going to be challenging for many economically, it’s worthwhile reflecting on how well our Tech sector is doing and the very real difference it is making to our country.
Graeme Muller and his NZ Tech team put on another outstanding TechWeek 20th to the 24th of May, culminating with the Hi-Tech awards Gala Dinner where Murray Holdaway of Vista fame, was inducted into the flying Kiwi Hall of Fame and Rocket Lab was awarded the Hi-Tech company of the year.
Greg Shanahan, Alex Dickson and the TIN (The Technology Investment Network) team produced its second Fintech Report, with the data showing a growth rate 4 times faster than the rest of the tech industry, with export revenues of $2.64 billion in 2023. With the introduction of open banking around the corner, further gains are expected once the Customer and Product Data Bill to support customer data rights winding its way through the parliamentary legislative process.
Stats NZ released the findings of its, Information and Communication Technology Supply Survey, showing remarkable growth in 2023, with sales of published software and IT services reaching $14.5 billion in 2023, a 28% increase from the 2021 figure and contributing 3.7% to the nation’s GDP. TIN has previously reported across the broader Tech Sector that tech exporters reported revenues of $13.2 billion from overseas markets, reinforcing tech as our second largest export earner.
So, some phenomenal results and achievements are to be recognized and for the industry to be proud of. However, May also saw the Workforce Development Council (WDC) raise concerns about our country’s ability to have a workforce to support this growth with a decline in government investment and tertiary education for the sector despite an anticipated need for 20,000 additional workers in the sector by 2030. It is interesting to note that TIN’s FinTech report noted that international recruitment out-paced local recruitment by 3 to 1. The WDC CEO Claire Robinson has asked for a more coordinated, long-term strategy to combat these concerns.
As New Zealand’s Tech and IT services sector continues to grow addressing these workforce challenges will be crucial for sustaining its momentum and ensuring we remain a competitive player on the global stage.
Thanks for reading, and if you’re interested in more information:
Here’s NZTech’s wrap of TechWeek 24 https://techweek.co.nz/news/
TIN’s FinTech report is here: https://tin100.com/reports/2024-nz-fintech-report/
The WDCs report is here: https://toimai.nz/wp-content/uploads/2024/05/Te-Wao-Toi-Whanui-Spreads.pdf
The NZ Stats survey is here: https://www.stats.govt.nz/information-releases/information-and-communication-technology-supply-survey-2023/
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