Information and communications technology industry of New Zealand is constantly growing on account of its strong domestic market that sweeps most of the industry’s revenue.
Statistics New Zealand revealed that the information and communications technology industry of the country maintained its growth pace in FY 2008 as it had been in the previous year, as reported by ZDNet Australia.
Figures released by Statistics New Zealand show that in FY 2008, the sales of ICT goods and services were 3% up at $19.3 Billion. Domestic market contributed $17.9 Billion (4% higher), while merely $1.4 Billion (down by 8%) came from export markets. ICT services, in particular, grew 3% reaching $10 Billion whereas ICT goods sales soared by 4% to mount to $9.3 Billion.
Domestic market drove New Zealand’s ICT industry as it accounted for the bulk of revenue during the year. Further, the services in telecommunications and program distribution segment, including subscription television, were the highest-ranking. This segment contributed nearly one-third of the country’s total ICT sales.
Telecommunications equipment, computer and related equipment, audio and visual equipment and IT technical support and design, consulting and development services, were other important segments.
According to Statistics New Zealand, the most common obstacles in the growth of ICT business are strong market competition and the ability to lure and retain the qualified and experienced staff. The same factors were held responsible for obstructing the growth of the industry in 2007.
Moreover, small businesses recorded more than twice the ICT sales recorded by medium businesses, though the number of small businesses was over nine times that of the medium businesses. In general, small businesses accounted for relatively smaller share than the large businesses in most of the sales of ICT commodities. However, small businesses accounted for 65% of the overall $40 Million sales of training and education in the ICT industry.
According to a Research Analyst at RNCOS, “New Zealand’s economy is largely influenced by the ICT industry and it is an important contributor to the economic growth of the country. The IT industry is mature and sophisticated and is proficient in developing high-tech and innovative services and products. Moreover, New Zealand is recognized as an early IT adopter, despite its relatively small economy.”
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