'Blue-sky projects' not the answer, says software chief

By RICHARD WOOD

More focus on local IT work won't get New Zealand reaching the government taskforce target of 100 ICT companies each doing $100 million of sales a year by 2012. That's the view of the president of the New Zealand Software Association, Rollo Gillespie.

"We need to sell today's bread. We have the technology in New Zealand already. Our focus should be international, getting sales. Our biggest weakness is sales and marketing ability. That creates a huge chasm in being able to succeed offshore," he said.

Gillespie, who is also managing director of software firm Data Group, was reacting to a Herald column by the president of IT industry group ITANZ, Nick Lambert.

Lambert called for Government to use its 33 per cent of GDP expenditure to direct government organisations to develop their own innovation programs and "world-leading solutions" for government administrative problems, which could then be sold around the world.

He said New Zealand can become a centre for advanced IT applications and this would encourage multinational investment locally, which has been declining.

Gillespie described the ITANZ proposals as "scary" and said: "We don't need more blue sky projects". He said the ITANZ initiative for a centre for advanced government applications has some merit but "the idea of our government departments being power users, leading the world, and being referenceable to provide a springboard for such applications into the global government markets is implausible."

"A little success in this area could be achieved but it is never going to provide the broad ICT industry growth that is aimed for by the ICT Taskforce."

Lambert had also said New Zealand-owned firms should be involved in the new projects and intellectual property ownership should be retained in the country and licensed through vendor consortiums.

He said multinational firms have the market knowledge and know how that is a vital component of taking new technologies offshore. Gillespie agreed local IT innovators should be working with multinational firms to find opportunities and he said Nick Lambert (in his other role as IBM New Zealand managing director) could help significantly.

"We need to build channels into these markets with the assistance of the Government, the ICT multinationals, and any networks we can find. The government needs to incentivise the [multinationals] to have more of an outward focus of helping NZ companies market through their channels internationally."

ITANZ has a broad range of member companies including multinational and local IT vendor firms, IT integrators, network operators, and educational institutes.

Its stated aims are to to be a key driver of New Zealand prosperity through the use of IT, and growth in the IT industry.

The NZSA is more specialised in that it aims to help New Zealand prosperity, but more specifically by helping with the growth of the local software industry, both locally and internationally.