23 February 2004

23 February 2004

New Zealand Trade and Enterprise (NZTE) is supporting the Information and Communications Technology industry’s outsourcing project by helping build a strong New Zealand technology story in key offshore markets.

NZTE ICT sector specialist Alan Crofts said a team within NZTE was working with the ICT industry to look at long-term opportunities to leverage New Zealand’s technology capabilities in key offshore markets.  Initially this would be the United Kingdom which was recommended as an “immediate priority” by a Gartner report on New Zealand as a destination for global services outsourcing.

“One current piece of work we are doing is actively supporting the ICT industry to help ensure New Zealand has a strong presence at the Gartner Outsourcing Conference in the United Kingdom in April. 

“Other key markets outside of the UK will be targeted in the future,” Mr Crofts said.

One of the weaknesses of the New Zealand ICT market identified by Gartner was the lack of a single ICT brand and messages in global markets.

NZTE was very supportive of the outsourcing project, but was adamant that it must be industry led, Mr Crofts said.   “The Gartner relationship and the outsourcing project were developed by the industry and we have contributed where appropriate.”

NZTE commissioned the Gartner report with the support of leading ICT companies and the Information Technology Association (ITANZ).  Copies of the report will be available today (Monday, 23 Feb) on application to ITANZ.

Mr Jim O’Neill, Executive Director of ITANZ, said the international market for outsourcing of ICT services was expected to exceed US$500 billion by the end of the decade.

“Our position is that the supportive stance adopted by NZTE means we can act as a catalyst for all members of the New Zealand ICT industry, not just ITANZ members, to build globally on our proven skills in services exporting.

Mr Crofts said New Zealand ICT companies, because of their problem solving abilities, cost effectiveness and innovation, have a real opportunity to grab international outsourcing opportunities.

“These opportunities may only be small on the global scale, but they represented a significant ones for New Zealand businesses.

“Gartner also identified that the best opportunities for the New Zealand ICT industry are in the higher end involvement in the application development life cycle, such as research and development and architecture design,” he said.

“Statistics show that the provision of ICT services is the fastest growing segment of the New Zealand industry,” Mr O’Neill said.   “This means that we have the industry momentum necessary to take advantage of assessments that there is an 18 month window of opportunity for New Zealand firms to build a strong and ongoing niche in the global marketplace.

“Our belief is that the United Kingdom should be the initial focus of promotional activity with a strong Kiwi brand because New Zealand is well known there for its creativity and cultural affiliations. The UK IT services market is a US$47 billion one with outsourcing estimated at approximately US$3 billion and expected to grow at a rate of 40 percent a year.

“Industry accepts that the outsourcing project must be industry led and it is encouraging that to date we have more than 10 companies actively supporting the initiative with backing for a presence at the Gartner Outsourcing Conference.

“It is also fair to say that NZTE promotional support to make the most of their presence at the conference will be a key part of the positioning exercise.”

Ends

For Further Information:

NZTE spokesperson – Alan Crofts
ICT Sector Specialist
Phone: 09 919 9034
Email address: alan.crofts@nzte.govt.nz

ITANZ – Jim O’Neill
Executive Director
Phone: 04 472 2731

Distributed by Mike Booker, Communications Consultant, New Zealand Trade and Enterprise
Phone: 04 970 8474,
Mobile: 025 832 921,
Email address: mike.booker@nzte.govt.nz

New Zealand Trade and Enterprise (NZTE) is the New Zealand Government’s trade and economic development agency, formed from the merger of Trade New Zealand and Industry New Zealand. Using its network of offices in New Zealand and around the world, NZTE works with businesses to help grow their international competitiveness, profitability and capability. www.nzte.govt.nz