Total IT Sales Continue To Grow

Information Technology Survey: 1999 Financial year

Total IT Sales Continue To Grow

Information Technology (IT) sales, excluding communication services, were $6.0 billion during the 1999 financial year, an increase of 7.2 per cent on the previous year. The growth in IT sales was mainly the result of increased sales of software, computer services, and training in IT. The relative size of the IT industry can be seen by comparing sales with that of other industries such as the accommodation, cafe and restaurant industry (estimated to be $4.4 billion in 1998) or the finance and insurance industry (estimated to be $7.4 billion in 1998).

Total exports of IT goods and services have doubled over the last four years to $558 million for the 1999 financial year. This compares to exports worth $806 million for fish, $434 million for kiwifruit, and $384 million for apples for the March 1999 year. Between 1998 and 1999 exports of IT goods and services increased by 16.6 per cent. This growth was mainly a result of a 44.4 per cent increase in sales of software and computer services, and a 15.7 per cent increase in exports of peripheral computer equipment. The increase in the value of export sales may in part be attributed to the decline in the value of the New Zealand dollar over the 12 months to March 1999.

Software sales have increased 15.6 percent, driven by both increased domestic and export sales. Although software exports increased 34.1 percent to $105.3 million in the year ended March 1999, exports make up only 15 per cent of software sales. Sales of IT services were up on 1998 levels, increasing 18.2 per cent to $1.9 billion. Exports of services have doubled over the last two years but make up less than 10 per cent of all sales of services.

Ian Ewing DEPUTY GOVERNMENT STATISTICIAN

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