New Zealand’s forecast spending growth is ahead of growth in world spending. Gartner says the international market will climb 5.1 percent this year.
The fastest growth in New Zealand will be in data centre systems which Gartner says will grow 16.6 percent in 2021.
Data centre building boom
New Zealand is seeing a burst of investment in local data centres. Earlier this week DCI Data Centres announced plans to further develop its 5 hectare site in North Auckland.
The company says it designed its AKL01 and AKL02 sites for the New Zealand market and local data sovereignty.
Enterprise software is surging with spending expected to grow 14 percent. It services are forecast to grow seven percent. Devices will be up 6.7 percent.
Communications services is the laggard, as has been the case in recent years. Gartner expects spending to grow one percent. That’s well behind New Zealand’s rate of inflation and can be seen as, in effect, a market contraction.
In recent years Communications Services was the largest sector in New Zealand, but it’s slow growth saw it eclipsed last year by IT Services.
New Zealand IT spending forecast
|2021 Spending||2021 Growth (%)||2022 Spending||2022 Growth (%)||2023 Spending||2023 Growth (%)|
|Data Centre Systems||667||16.6||700||4.9||763||9.0|
All numbers are NZ$ millions
IT services on a roll
Gartner expects IT services to grow 8.5 percent in the coming year to reach NZ$4.5 billion. In 2023 it expects the segment to grow a further 10.6 percent taking it past NZ$5 billion.
IT services includes consulting and managed services. Gartner says consulting will grow eight percent in 2022.
“…staff skills gaps, wage inflation and the war for talent will push CIOs to rely more on consultancies and managed service firms to pursue their digital strategies.”
Gartner forecast total IT spending will grow a further 5.4 percent in 2023 taking the spend past NZ$16 billion.