With economists predicting doubling of unemployment and a deepening recession, this week Treasury described our COVID economy as “characterised by profound uncertainty”. The role Government play as a buyer of goods and services is more pivotal than ever before.


Here is a timely recap of why the Government must buy from NZ owned Digital Technology companies, summarised by Laurence Millar on behalf of the NZRise membership:

1.  Resilience

The pandemic has highlighted the risks of depending on overseas suppliers.  The recent cyberattacks on financial institutions has also illustrated our vulnerability and shown the importance of local capability. As the world steers into uncharted waters, resilience will be a critical attribute of successful countries

2.  Growth

The tech sector is an engine for growth in the domestic economy. Government is the largest purchaser in the sector, and future economic growth will be dependent on the suppliers that government chooses.

3.  Jobs

The tech sector has high value jobs with high productivity when compared to many other sectors.  Every time a new job is created in the tech sector, the average wage increases; in contrast, every time a new job is created in the tourism sector, the average wage falls.

4.  Environment

During the pandemic, NZRise has been a leader in adopting and promoting remote work.  The tech sector is a green sector, with low environmental impact. The future wellbeing of Aotearoa needs green jobs and green growth.

5.  Tax

NZ owned firms retain profits in Aotearoa, which contributes to the tax take of the government.  Independent analysis confirms that the multiplier and tax revenue effects of local procurement reduce the net cost to the government of local contracts by 40%.

6.  Exports

The tech sector produces “weightless exports” that are well suited to the future global economy.  Marcel van den Assum, Angel Association Chairman and one time CIO of Fonterra, says:

When I take NZ digital start-ups offshore to customers, partners and investors, the consistent feedback is the we produce innovative solutions that are great value for money … the rest of the world has cottoned on and now is the time for NZ to embrace local to accelerate our digital transformation.”

Further reading

For in-depth analysis on the benefits to the economy of buying from NZ owned Digital Technology companies, see recent research commissioned by Catalyst IT – Benefits of Local Procurement.

Any questions on this please contact the NZRise Co-Chairs, Ngā mihi, Victoria.

Join NZRise

We’re about strengthening the NZ-owned digital technology sector.

%d bloggers like this: