Outsourcing your IT requirements in New Zealand can be a smart business decision, giving you access to senior engineering talent, cost control, and flexibility without the overhead of full-time hires. Whether your business is a startup or an established enterprise, working with a trusted NZ-based IT partner offers advantages that are difficult to replicate in-house.
New Zealand's Tech Landscape
New Zealand has grown more aware of the need for international expertise as its growing software industry requires it. Local companies once developed and maintained all their own technology, but supplier diversity is now key to maintaining stability in an ever-changing landscape.
The tech sector in New Zealand has always been a vital part of the country's economic success. In 2021, TIN200 (Technology Investment Network) companies recorded $10.4B in export revenue from nearly $14B in combined revenue. Because of this, government and industry bodies have increased their investment in tech companies to support the expansion of these businesses.
Why Should You Consider Outsourcing IT in New Zealand?
The most frequently outsourced IT services function in the US and Canada is software application development, with around 60% of companies outsourcing this.
While you can outsource many IT services to Asian countries that have larger populations and significantly cheaper prices, there is no other country that offers the same combination of attractive factors: a single language and culture, established contract law, stable currency, decent infrastructure, and sophisticated customers with money to spend.
1. Cost Savings
The cost-saving potential of outsourcing software development is one of the main reasons businesses choose this approach. Research by Deloitte in 2016 found that almost 59% of companies outsource with an aim to reduce or control their costs.
When developing software internally, there are many associated costs. For smaller companies, the cost of hiring new staff can be expensive and time-consuming, meaning they may not have enough resources for this purpose in-house. Outsourcing becomes necessary if you want your product developed fast enough to stay competitive.
2. Time Zone Advantage
New Zealand is the first country in the world to wake up, two hours ahead of Sydney and four hours earlier than Perth. This means New Zealand teams can cater for evening time zones, which makes it easier when dealing with business partners or clients around other parts of the world.
Contact centres in New Zealand also operate at twice the rate of Australia's because they offer more flexible working arrangements and lower after-hours costs.
3. Ease of Doing Business
New Zealand is a great place to start or expand your business because of the government's investment in supporting businesses. In 2017, it was ranked as one of the easiest countries to do business in and the second most competitive among OECD member states.
4. Effective Management of COVID-19
New Zealand, with its small population and English-speaking culture, demonstrated highly effective responses to COVID-19 after 2020. This reinforced the country's reputation as a stable, well-governed partner for business.
5. Favourable Labour and Tax Environment
New Zealand offers a productive and efficient labour market. Corporate tax rates and unionisation rates are competitive, and the overall environment leaves businesses with more resources to invest in growth and technology.
6. Speaking the Same Language
Working with a New Zealand-based IT partner removes the cultural and linguistic friction that can make offshore projects frustrating. Communication is direct, context is shared, and it is more like having an extension of your own team working outside office hours, contributing to tasks in a way that benefits everyone involved.
Looking for a trusted IT outsourcing partner in New Zealand? Contact Putti. We work with businesses of all sizes across Auckland and New Zealand, providing senior engineering teams with no offshore subcontracting.