NZ businesses to spend $6.2 billion on IT

IDC predicts 2011 will mark end of spending drought for many industries

IDC expects New Zealand's business IT market to grow from $5.1 billion in 2010 to $6.2 billion in 2015, a compound annual growth rate (CAGR) of 4.1 percent per annum.

IDC has lowered slightly last year's spending forecast based on several factors, specifically the Canterbury earthquakes and recent upheavals in the global financial markets.

"2011 will mark the end of a spending drought for many industries, though we expect the recovery to be patchy and fragile," says Louise Francis, senior market analyst, IDC New Zealand.

"The continued volatility of global financial markets means that many vertical markets will not be putting their foot on the investment accelerator in the short term. Already many large multinationals are already moving towards budget freezes or a stringent approach to budget approval and it is unlikely that IT budgets will escape unscathed."

IDC NZ's report, 'New Zealand Vertical Markets IT Spending: 2010-2015 Forecast and Analysis', details IDC's analysis of the opportunities that exist within 12 industries in the New Zealand IT market and how industry dynamics will shape the adoption of innovation.

In general it is the larger verticals that will have the momentum in terms of IT spending over the forecast period. Two verticals that stand out in terms of sustained growth are banking, financial services and insurance (BFSI), and utilities. These markets are expected to grow by a CAGR of over 5 percent through to 2015.

"While these industries appear to be quite different, both are experiencing growth due to remarkably similar business needs", says Louise Francis. "These include continually changing regulatory compliance structures, productivity drivers and managing the data deluge."

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