Field at Present: From a Director’s Perspective

Generally, we have seen a slow start to the year, continuing the trend we saw in the latter half of 2023. Despite feedback from the market that suggested a stronger bounce back, we have yet to see this in the market at present. There are pockets of activity - primarily back-fills to existing hires.

As we gear towards the backend of the government’s 100-day plan, we should see the firming up of new projects and programmes, which will likely require capability to deliver these pieces of work.

Unfortunately, we are still seeing organisations across a range of industries forced into making rounds of redundancies and other operational cuts or changes to help them operate more leanly during challenging times, and we’ve even seen this in the recruitment industry itself. 

Offshoring Capability to Increase Profitability

Overall, one of the key challenges core businesses are facing right now is the significant cost increases in salaries that have impacted on their organisation, and subsequently, their profitability. Both SME and Enterprise businesses are heavily mindful of costs and actively looking for ways to reduce this.

We have seen this challenge being countered with an increase in organisations offshoring capability at a heavily reduced labour cost compared to the local market. The big challenge will be getting the balance right between offshoring to reduce overall cost whilst maintaining a sense of quality control and IP.

Opportunities to Onboard Senior Tech Leaders

On the flipside, looking at the opportunities for businesses in terms of people and talent, in some regions, we have seen an increase in senior technology leaders actively in the market due to restructuring and redundancies, along with a number of skilled and experienced leaders passively looking to move on.

The numbers are certainly something we haven’t seen in some time. There is some great talent out in the market, and businesses have the opportunity to snap up some exceptional senior leaders to really assist in their technology transformations.

Contract Opportunities on the Rise

The opportunities for contractors have remained down, following a large number of business analysts and project managers coming onto the market late last year, which was an indication of various projects both in-flight and in planning phase being cut.

As we enter March, we’ve seen the market pick up slightly with various projects moving from funding being approved to planning and delivery phases. With the new financial year budgets being released, we expect to see further opportunities for contractors as projects will begin to pick up pace.

Trends in Tech and Skills in High Demand

The market for developers, data, and cloud engineers has slowed, however there is still some demand, and this could pick back up come budget release time.

AI-related tools continue to be an area candidates should keep an eye on if they aren’t already. We can see AI and the supporting tooling will continue to grow in importance as businesses look to maximise efficiencies.

Additionally, remaining relevant with appropriate cloud certifications or expertise will ensure candidates continue to be marketable to employers.

Despite the current challenges the industry is facing, the role of the technology sector in driving economic growth in Aotearoa has never been more pronounced. It’s not just a supporting player anymore – as this article from NZ Hearld outlines, it’s front and center, poised to become our largest export and offshore revenue generator. This shift underscores the critical importance of tech and digital landscape in shaping our economic future.

While the market and economic conditions may be tight, there’s a silver lining. There are numerous companies within the tech sector that are thriving and poised for continuous success in the coming year.

With the government reallocating resources and reprioritising projects and programs, we’re hopefully on the cusp of seeing a surge in demand from various government departments. This uptick in demand will create exciting opportunities for tech professionals across the board, from software developers to data analysts, to cybersecurity experts.

For all candidates, but contractors in particular, we must reiterate the importance of understanding and meeting the market at hand, as well as the customer budget. We have seen several candidates miss out on roles by not being negotiable to the customer’s budget, then coming back later without a role, and wanting to see if it is still available at the offered rate.

If you are looking for work, keep networking and remain connected. Enjoy plenty of coffees with old coworkers, recruiters, and those you know in the industry. Things will pick up and if you are leveraging your networks and relationships, you’ll be front of mind when an opportunity presents itself.

You need to treat job hunting like a job. Prepare, plan, tailor your application for each individual role, and try and be disciplined in your approach. We understand that this is a tough market, and if we can help you in anyway, then please reach out to our team.

As we look ahead, it’s clear that the tech and digital landscape in NZ is evolving rapidly. By staying informed, proactive, and adaptable, candidates and businesses alike can position themselves to capitalise on the opportunities that lie ahead.

As employers, it’s crucial that we don’t rest on our laurels but instead maintain an innovative mindset, perhaps even expanding our horizons globally, to stay ahead in this competitive market. Simultaneously, it’s vital to prioritise meeting the needs of our current teams and fine-tuning retention strategies.

As ever, we remain dedicated to nurturing our longstanding relationships and talent networks. Despite the challenging market conditions, our priority remains delivering top-notch recruitment solutions for both our clients and candidates.

If you have any questions, or would like any advice regarding hiring talent for your team or business, please reach out to myself, Chris, Bianca, or any of our team members for a confidential discussion.