Gartner predicts strong growth for NZ ICT, led by enterprise software and devices

John David Lovelock (Gartner)

Credit: AWS

New Zealand’s technology and services markets remain buoyant according to market analyst Gartner Group, with annual growth of 7.4% expected in 2022.

Sales of technology products and services in New Zealand are expected to total $15.3 billion in the coming year. By comparison, global IT spending is expected to grow by 5.1% from 2021 to US$4.5 trillion.

Despite the potential impacts of the Omicron variant COVID-19, the economic recovery with strong expectations for digital market prosperity will continue to drive technology investment, Gartner said today.

“2022 is the year the future comes back for the CIO,” said John-David Lovelock, Distinguished Vice President of Research at Gartner.

“They are now able to move beyond critical short-term projects of the past two years and focus on the long term.”

At the same time, staff skill gaps, salary inflation and the war for talent will push CIOs to rely more on consulting and managed services firms to pursue their digital strategies.

Gartner predicts that the largest category of IT spending in New Zealand, the IT services segment, is expected to grow 8.5% from 2021 to more than $4.5 billion. Within this category, business and technology consulting spending is expected to increase 8% to $764 million.

Organizations will increase their reliance on external consultants as the heightened urgency and accelerated pace of change widens the gap between organizations’ digital business ambitions and their internal resources and capabilities, Gartner said.

“This will be particularly poignant with the cloud as it serves as a key enabler to achieving digital ambitions and supporting hybrid working,” Lovelock said. “Gartner expects the vast majority of large organizations to use external consultants to develop their cloud strategy over the next few years.”

The services segment, however, is expected to be overshadowed by growth in enterprise software sales, which are expected to increase 13.7% year-on-year, and devices, up 9%.

New Zealand ICT market growth is expected to be well above global averages in 2022.Credit: Gartner Group
New Zealand ICT market growth is expected to be well above global averages in 2022.

The trailing segments in 2022 are expected to be Data Center Systems, with sales expected to grow 4.6%, and Communications Services, which may expect growth of just 1%.

Gartner’s IT spend forecasting methodology is based on analyzing sales from thousands of vendors across the full range of IT products and services. The company also uses primary research techniques, supplemented with secondary research sources, to create a market size database on which to base its forecasts.

A global IT spend analysis is available in a Gartner webinar.

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Tags Gartnerit servicesdevicesGartner Groupenterprise softwareNew Zealandmarket forecastcovid-19omicronresearch