3. New Zealand IT Market
3.1 Sales Activity (Updated)
The information in this section is taken from a 2000 survey of IT firms conducted by Statistics New Zealand (Statistics New Zealand 2001b) and applies to the financial year to March 2000. For more information about the survey see Section 2. Data for 1999 have been revised since the previous report, as more accurate information has become available (similar revisions were also made in previous years). This year, for the first time, Statistics New Zealand has reported on Communications Services which was previously excluded for reasons of confidentiality.
The total value of the New Zealand IT industry (including telecommunications) in the March 2000 financial year was $11.133 million, up 6.9% from the previous year. Of this, $4,583 million is due to telecommunication services.
These gross figures include an unknown level of double counting of retail and wholesale sales. Consequently, the data used in Figure 3.1 represents goods and services sold to end users only and, in 2000, exclude $2,454 million reported in the survey as "other customer sales". To maintain consistency with earlier years, the figure also excludes $3,841 million of end user sales of telecommunications services.
Figure 3.1: New Zealand End User Computer Hardware, Software and Services Market, Excluding Telecommunications Services (NZ$ Millions)
* The 1999 figures include a number of revisions due to more accurate information becoming available since the 2000 report.
The Single User Hardware category refers to complete computers intended for use by only one person at any one time and so mainly comprises desktop and laptop PCs and Macintoshes. Multi-User Hardware refers to computers intended for use by many people at the same time and includes file servers, midrange systems and mainframes. Parts of computer systems (other than the CPU) when sold separately appear under Peripherals.
Table 3.1: Changes in End User Sales Since 1996 (Percent)
| | 1997 | 1998 | 1999 | 2000 |
| Computer h/w: single user systems | -12.4 | 3.5 | 5.4 | -11.9 |
| Computer h/w: multi-user systems | -5.8 | -0.2 | -2.5 | 2.7 |
| Peripheral computer equipment | -5.7 | 11.6 | 14.3 | -13.4 |
| Communications hardware and cables | 15.9 | -7.8 | -19.8 | 24.9 |
| Software sales | -13.9 | 27.7 | 24.3 | -13.7 |
| Computer services | 4.5 | 13.7 | 17.2 | 16.5 |
| Training and education in IT | 2.4 | -1.3 | 41.1 | 46.8 |
| Communication services | 13.5 | 12.2 | -4.6 | 4.2 |
| Total New Zealand end-user sales | 6.2 | 10.2 | 1.8 | 5.3 |
Sales in the New Zealand IT market rose by 5.3% in the 2000 financial year despite decreases in a number of categories, including software, computer peripheral equipment and computer hardware: single user systems. The main contributor to growth was the 16.5% increase in computer services which represents 48% of non-telecommunications end user sales. This increase is attributed to a continuation of a trend towards businesses outsourcing of services rather than maintaining their own infrastructure. For the second year in succession there was a greater than 40% increase in training and education in IT.
3.2 Business Activity (GST) Indicator (New)
The Business Activity Indicator uses GST data from the Inland Revenue Department matched to the Statistics New Zealand Business Frame. Figure 3.2 represents sales and purchases for the computer services industry (ANZSIC L783, Statistics New Zealand 1996) measured quarterly since early 1993. Following relatively little growth through 1995, sales have grown steadily except for a pronounced dip over the Y2K transition period between October 1999 and February 2000.
The gap between "purchases" and "sales" can be regarded as a measure of "added value".
Figure 3.2 Business Activity (GST) Indicator for the Computer Services Industry from April 1993
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