IT confidence in US bodes well for Kiwi operators

A survey showing that information technology (IT) company confidence and turnover is expected to rapidly outpace economic growth in the United States spells good news for New Zealand’s IT companies, according to KPMG.

The survey of 130 IT companies in the U.S. showed eight out of 10 executives expect business conditions in the technology sector to improve in 2010, with 78 percent expecting stronger revenue and 72 percent expecting improved profitability.

Two-thirds of senior technology executives said they thought their industry would fully recover from the current economic crisis ahead of the overall U.S. economy. Silicon Valley-based executives were even more bullish with 77 percent expecting the technology sector’s recovery to outpace the U.S. recovery. About 43 percent of the technology leaders surveyed expect the U.S. economy to recover after 2010 while 39 percent predict the economy will recover by next year.

KPMG Technology Partner Adrian Michael, says for those New Zealand IT companies exporting to U.S. this survey gives real confidence that now there is a better market opportunity for their IT products and solutions.

“Most firms have now implemented cost cutting measures and while they will continue to be important, now is the time for New Zealand firms to make sure that their focus is outward and not inward. This survey shows that confidence is on the rise and that the market is looking to IT solutions to help drive the recovery. With new budgets in 2010 customers will have more ability to spend on IT capex and New Zealand technology companies should be right there to take advantage of that.”

The domestic market will also present new opportunities for IT companies. “Because the US economy is a leading indicator of future trends globally, it is reasonable to expect that New Zealand executives are going to be feeling more confident about the New Zealand economy. Anecdotally, many of our technology clients are telling us that they are confident about the economy and their prospects. No-one is expecting a boom but the mood is one of cautious optimism.”

Already there are signs that confidence is returning to the market including the housing and share market. “Confidence is critical to recovery and the signs are there that this is starting to turn.”

Executives across a range of industries in New Zealand are now focusing on IT spending to maximise efficiencies and gain competitive advantage. “Many large IT projects have been delayed, but as companies get comfortable that the worst is past, purchase decisions will start to be made. The technology sector has driven productivity growth over the last 10 years and we believe that technology solutions will be even more important going forward in the digital era.”

When respondents to the survey were asked how they had reacted to the economic downturn, 68 per cent said they had reduced headcount. Only 14 percent of respondents said they are planning or considering further reductions in 2010.

Press Release

Jane Kellahan, a Wellington based painter, is the only New Zealand artist to
make it through to the final selection for the trans-Tasman, Cricket Art
Prize exhibition.

14 Kiwi painters along with 218 Aussie artists submitted a painting for the
inaugural Cricket Art Prize competition, in which 32 paintings were
selected.

Artists were asked to depict life in and around the game and sport of
cricket, in settings of beach cricket, backyard cricket, park cricket and
social cricket.

The judges took 8 hours to view and re-view all entries to refine the 232
paintings down to 32 pieces of work for the exhibition.

Jane Kellahan said "I am thrilled or honoured to represent New Zealand in
this exhibition. New Zealand is a strong sporting nation and is on the
forefront of art & creativity in the international arts arena."

"Combining both sport and art, has been a challenge and extremely satisfying
for me. My inspiration stems from memories of summertime cricket at the park
and watching the great Sir Richard Hadlee" she added

Her work "White Wickets" - oil on canvass, portrays dreamlike figures
playing a surreal version of night cricket in merging tinged colours of red,
orange and navy-blues with an interesting texture and finish.

The Winner and the Highly Commended will be announced on Thursday 8th Oct at
the opening at the Sydney Cricket Ground before embarking on a 4 month tour
of Australia.

The Cricket Art Prize offers AU$20,000 to the winning painting, $2000 to the
Highly Commended and $1000 to the Peoples' Choice award with national
exposure for exhibiting artists.

Exhibition Dates and Tour:

*Members Pavilion, Sydney Cricket Ground, NSW - 8th to 25th Oct 2009
*Harrup Park, Mackay, QLD - 29th Oct to 18th Dec 2009
*Olympic Atrium, Melbourne Cricket Ground, VIC - 22nd Dec 2009 to 7th
Jan 2010
*Bradman Museum, Bowral, NSW - 10th Jan to 7th Feb 2010

For further information please visit the website: http://www.publisherscup.org.au

ENDS

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