Health of NZ IT industry

During March 2009 a survey of the Senior Managers within over 400 technology businesses in Auckland to gain an understanding of the key insights from these organisations, both currently and in the coming year.

Key Summary
A significant portion of respondents are solely focused on expansion; fewer than 10% are solely focused on survival.
The vast majority are either neutral or positively geared towards their current business focus More than half of organisations are expecting to increase their revenue in the next financial year A few businesses are potentially confused and disoriented as to their key business strategy Company revenue projections appear to be bullish, with only 12% anticipating a drop in 2009-2010 Over 60% of companies are expecting to hire within the next 12 months, with a fifth doing so currently Over a quarter (28%) of technology companies have experienced redundancies Only 2% of organisations have asked staff to reduce hours and/or salaries More than two-thirds have NOT gone through any downsizing Just over half expect to be seeking permanent employees; yet almost half of all hiring will be comprised of contractors Only 3% of those hiring expect to pay more for their new recruits; more than a quarter of hirers expect to pay less The great majority of people believe that the calibre of available candidates is higher or the same The numbers of total applicants across the board is only slightly higher than usual for this time of year; however the behaviour of those applicants has changed dramatically – they are applying to multiple vacancies as many now need rather than merely want a job [This data was taken directly from Seek’s Analysis] The majority of Managers believe their team morale is level 4 on a scale of 1 to 5. Only a marginal number (8%) of companies feel their team morale has suffered Almost a third of companies plan to invest more in learning & development programs while only 13% anticipate spending less. Download here

Posted by Kevin Andreassend

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2 Responses

  1. No surprises in this for my company, we expect the same revenue as last year, which was a record year, but even so I have seen a huge blowout in the days that organisations take to pay. It does make one cautious about spending money that I haven’t got (yet). And we are also hostage to the wildly fluctuating NZD which has moved some 40% in recent years. Consequently, even though we are paying provisional tax on the profit expectations that we had 12 months ago (which looked wildly optimistic for the first half of this year), we are not taking on any new staff, new office space or upgrading our cars. Tough luck HR, Real Estate and car salespeople!

  2. I wonder if this survey might be a little out of date. It was after all conducted in March and it’s now mid July.

    We had a good first quarter, not so good 2nd quarter but the prospects of a good 3rd quarter are looking better.

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