David Downs: NZ’s tech industry is worth over $17b but lacks diversity

Maraea Winterburn Anaru is a success story for the tech industry.

OPINION

• New Zealand’s technology sector turned over $17 billion in revenue in the past year.

• The average wage is nearly $100,000 per annum.

• Availability of talent is a serious handbrake to growth.

• There is also a lack of diversity with low participation from women, Māori, Pacific peoples and those who are neuro-diverse.

Rockets, spaceships, flying boats and let’s not forget Xero, the company that made accounting software a household name. The NZ Tech sector is without question an exciting industry that has become a major international player.

New Zealand’s tech industry is currently worth over $17b (TIN200 report 2023) and now rates as the country’s second largest export sector. Currently the tech sector employs over 120,000 people but it needs more, a lot more.

At the same time, this sector has a very low representation of women, Māori, and Pacific people, and of neuro-diverse people. The outdated view is that the tech sector is boring and ‘geeky’ – but the modern NZ tech sector is full of opportunities for creativity, for working in dynamic teams, and for solving some of the world’s big problems.

Lack of talent, and lack of diversity in NZ Tech provides a perfect opportunity to change the make-up of the sector and increase participation and inclusion.

We don’t have a talent shortage, we have an opportunity shortage.

David Downs.

In short, it requires significant investment into training young New Zealanders to support them into tech sector careers. And to prove the point that a career in tech is for everyone, who these young New Zealanders are might surprise you.

Maraea Winterburn Anaru is a 21-year-old mother and student pursuing the Certificate in Information Technology. After returning to high school at 18 with a 1-year-old baby after leaving at 16, it was a daunting first step going back to school.

She only had NCEA Level 1 but was determined to further her education for herself and daughter. She’s already proven to herself and others that you can overcome any barriers if you put your mind and heart into it.

Maraea didn’t have access to much technology as a child but if there was a malfunctioning, slow computer, she would be fascinated and would try to repair the internal hardware. She grew to appreciate sharing her skills and assisting others with their computer issues and is now lead IT for her iwi in Mahia, working with neighbouring Rocket Lab when required.

People like Maraea are all across NZ. The Hi-Tech Trust and it’s charitable foundation have assisted multiple other young people get into tech over the past three years, through their scholarship programme. But it’s not enough and to see meaningful change on a large scale the tech sector needs to invest more if it’s to continue its valuable growth.

That’s why NZ Hi-Tech Trust is partnering with the First Foundation and investing over $250,000 in the next few years into their programmes that support diverse and creative thinkers having access to tech careers.

The Hi-Tech Trust has been working with generous donors, industry leaders and companies to build up a legacy fund to pay for scholarships for people like Maraea – and now we want to scale that further.

First Foundation specialises in supporting highly capable young people who are held back by their socio-economic status. Supplying not only financial support across multiple years they also connect students with mentoring, and professional networks to get a strong start in their careers.

The tech sector is taking notice – as well as support from individuals, companies and organisations like VC company Movac, the New Zealand Software Association has come on board. After 30 years of significant contribution to the NZ tech sector, the NZSA has decided its job is done, acknowledging that the Kiwi industry has grown and matured, and the issues have changed too.

They have donated their remaining funds to the Hi-Tech trust to help build the fund for these scholarships.

David Downs has had senior roles at Microsoft, and New Zealand Trade and Enterprise. He is a published author on New Zealand Innovation and a director on a number of boards, including chairman of The Icehouse, the Hi-Tech Trust and the Well Foundation.