I went down various rabbit holes looking for ways to compare the New Zealand IT sector with Australia, using the great data from our ICT Employment Trends Report and couldn’t really find a suitable way to compare apples with apples despite our proximity. There are so many interesting factors that the New Zealand supplement, born of a timing issue over the ANZAC/Easter period, may need to become a more regular feature.
I am keen to know what you think.
There is so much more to New Zealand than great food and wine, the backdrop to Middle Earth, world-class actors, musicians and film makers, fabulous scenery and amazing contrasts – it has a vibrant ICT sector as well.
The latest ITCRA Trends Report New Zealand Supplement (see note) delved into the sector and found a strong industry making a significant contribution to the economy … however there are ‘dark clouds’ on the horizon for the ‘land of the long white cloud’ (apologies for the pun!).
Ever the optimist, I’ll start with the good news first:
New Zealand’s IT exports have grown at 14% compound annual growth rate (CAGR) over the last 6 years and during 2009 to 2013 the sector grew from $1.1 billion to $6 billion[1]. The IT sector is a key driver of economic growth, sitting proudly as the nation’s third largest exporter, now contributing over $7 billion in annual revenue. The New Zealand Hi-Tech Trust boasts that the industry employs more than 40,000 people and the sector is growing at twice the rate of the economy[2]. That’s a pretty strong statistic.
And now the not so good news:
Despite the industry driving the economy, this may not continue as it faces significant skills shortages and a slowing pipeline of ICT graduates coming through. Consequently resources are often sourced offshore, including Australia, to fill the gap.
When I delved further I found that some of the hardest to fill roles were in Computer Systems Design. This was due to the lack of candidates with suitable qualifications, experience and attitude[3].
Compounding the current shortage is a weakening pipeline of quality ICT talent. IT is the least popular field out of 11 main post-school areas in the latest New Zealand census and it has been in the position for over a decade[4]. Ironically ‘engineering and related technologies’ was one of the most popular fields but unfortunately it appears that the skills learnt here don’t align to current market needs.
On a positive note, the New Zealand Technology Industry Association appears to be on the front foot undertaking research into this matter and working with the Institute of IT Professionals New Zealand and NZRise (a group of NZ-owned IT firms) to address the skills shortfall through immigration and new skills searching techniques[5]. The Ministry of Education is also looking into how qualifications are viewed by employers.
ITCRA has also been engaged in the review of the courses as part of the Mandatory Review of Information and Communication Technology (ICT) Qualifications at levels 1-6 in consultation with IT Institute of Professionals and the New Zealand Qualifications Authority.
Similarly the sector has earned international recognition at the recent 2014 New Zealand Hi Tech Awards (organised by the NZ Hi-Tech Trust) when the judges including Apple Co-Founder Steve Wozniak, Google’s Director of Engineering Craig Nevill-Manning, and Senior Vice President of Cisco, Howard Charney noted the record number and quality of entries.
Having been fortunate enough to travel to New Zealand several times, I have seen and been impressed with the IT sector’s tenacity, innovation and energy. Although currently facing an ICT skills shortage, I believe this will be successfully addressed.
New Zealand is blessed with a strengthening economy, a growing ICT services export sector and a history of being first to address societal change, which means they have the right fundamentals to continue on their ICT growth trajectory.
Let’s ensure ICT contracting and recruitment companies are at the centre of this growth and deliver on quality talent and amazing business partnerships.
NOTE: ITCRA Members can access the full report here
Or the Q1 Employment Trends Reports can be purchased here.
[1] http://www.mbie.govt.nz/what-we-do/business-growth-agenda/sectors-reports-series/pdf-document-library/ict-report-2015.pdf
[2] http://www.hitech.org.nz/about-the-awards/
[3] http://www.mbie.govt.nz/what-we-do/business-growth-agenda/sectors-reports-series/pdf-document-library/ict-report-2015.pdf
[4] http://www.stats.govt.nz/~/media/Statistics/Census/2013%20Census/profile-and-summary-reports/quickstats-ed-training/qs-ed-training.pdf
[5] http://www.nztech.org.nz/nztech-addressing-the-skills-gap/
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