March 2024 I.T. & Digital Market Update

Kaleb Leeming • Mar 11, 2024

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.

Tech and the Economy

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.

In the Government Space

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.

Key Advice for Jobseekers

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.

A Final Note

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.

Re-entering the Job Market: A Guide for Experienced IT and Technology Candidates in New Zealand

27 Mar, 2024
Entering the job market after many years can be a daunting task, especially in the fast-paced world of IT and Technology. With advancements happening at breakneck speed, it is understandable to feel overwhelmed when suddenly thrown into starting your job search journey anew. However, there are simple steps you can take to get you started, ease the transition, and help you in landing your new dream job. At Recruit I.T., we've seen many experienced candidates successfully navigate this path, and we're here to share some valuable advice with you. 1. Revamp Your CV Your CV is your ticket to securing interviews, so it is crucial to ensure it’s up-to-date and tailored to the roles you are applying for. If yours is still in typewritten format and doesn’t include what you’ve been up to for the last 10 years, now is the time to get it updated. Ensure it includes your most recent and relevant roles, delete your high school work experience, and highlight your relevant experience, skills, and achievements prominently, focusing on how they align with the requirements of the positions you're targeting. If you are unsure where to start, collaborating with a specialised recruiter like Recruit I.T. can provide valuable insights and guidance in crafting a compelling resume. 2. Leverage Your Network Don't underestimate the power of networking, especially in the tight-knit IT and Technology community in New Zealand. Reach out to former colleagues, mentors, clients, and industry connections to let them know you're actively seeking opportunities. Attend industry events, meetups, and conferences to expand your network further. Many job opportunities are filled through referrals, so make sure to stay connected and keep your network informed about your job search. 3. Explore Both General and Specialised Job Boards You may have found your first job via a newspaper classified, but times have changed! While general online job boards like Seek and Trade Me, as well as LinkedIn Jobs are a good starting point, consider exploring specialised job boards focused specifically on IT and Technology roles, and register with a relevant recruitment agency like Recruit I.T. as specialised platforms like our website job board cater to this niche market, offering a curated selection of job openings tailored to your expertise. By targeting your search on these platforms, you increase your chances of finding roles that align with your skills and career goals. 4. Prepare for Interviews Brush up on your interview skills to ensure you make a strong impression during the selection process. Research the company and the role thoroughly, familiarising yourself with STAR and behavioural-based interview techniques (there is lots of info online!), practising common interview questions, and preparing examples that highlight your abilities and experiences. Additionally, familiarise yourself with the latest industry trends and developments to demonstrate your awareness and relevance in the field. It also won’t hurt to review and brush up on your verbal and numerical reasoning skills – once again, there are lots of free resources online to help you practise these types of tests/exercises. 5. Update Your Skills The IT and Technology landscape evolves rapidly, with new technologies and methodologies emerging regularly. Whilst you’ve developed your abilities on the job, do take the time to update your skills and knowledge with formal certifications and training to remain competitive in the market. Consider enrolling in courses, attending workshops, or pursuing certifications relevant to your field. Not only does this demonstrate your commitment to growth, but it also enhances your attractiveness to potential employers. 6. Be Flexible and Open-Minded The job market can be unpredictable, so it's essential to remain flexible and open-minded throughout your job search. Be willing to consider different roles, industries, or a short-term contract opportunity that may not align precisely with your previous experience. Embrace new challenges and opportunities for growth, as they can lead to unexpected career advancements and personal fulfilment. 7. Seek Guidance from Experts Navigating the job market alone can be overwhelming, especially after being out of the game for some time. In many cases, if your position has been made redundant, your organisation may provide outplacement services to offer help with CV crafting, interview prep, job search, practise testing and in some instances will also provide free access to training platforms. Consider seeking guidance from experienced specialised recruiters like our Recruit I.T. consultants. Our team possesses in-depth knowledge of the IT and Technology industries, along with extensive networks and resources to support your job search journey. From resume optimisation to interview preparation, we can provide valuable assistance every step of the way. Utilise all the free and skilled help you can access! 8. Embrace Your Experience and Life Skills It's easy to feel apprehensive about re-entering the job market after a long tenure with a single company or a prolonged absence, but remember to embrace the wealth of experience and life skills you've accumulated over the years. Your past successes, whether in your career or personal life, have equipped you with valuable insights, problem-solving abilities, and resilience that will be sought-after and appreciated by employers. While you may not have a recent job application or job hunt history, your track-record speaks volumes about your capabilities and adaptability. Have confidence in your abilities, and don't underestimate the value you bring to the table. Highlight your accomplishments and transferable skills during interviews, showcasing how they make you an asset to any organisation. By owning your experience and life skills, you can instill trust and credibility in potential employers, setting yourself apart from other candidates in the competitive job market. Embarking on a job search journey after many years can be a challenging yet rewarding experience. By revamping your resume, leveraging your network, exploring job boards, preparing for interviews, updating your skills, remaining flexible, seeking guidance from experts, and remaining confident in your experience and skills, you can increase your chances of success in the competitive New Zealand job market. Remember, you are not alone in this journey, and with the right support and resources, you will find your next opportunity. Our team are always happy to shout the coffee and provide some expert friendly and constructive advice to help you get started on your job hunt, so reach out anytime!

The True Cost of a Contractor

By Kaleb Leeming • 14 Feb, 2024
With the dynamic business landscape, many companies are embracing flexibility and adaptability as they navigate the ever-changing market. As someone who has worked in the technology and recruitment sector for a while, I’ve come across a common misconception that I’d like to address: the perception that contractors are significantly more expensive than permanent employees. I'd like to give light to the true cost of hiring a contractor and explore why it might be more budget-friendly than you think. Let’s start by acknowledging the elephant in the room – the hourly rate. It’s no secret that contractors often come with an hourly rate that seems higher than what you’d pay a permanent employee. But here’s the thing: an employee salary is just the tip of the iceberg. When you hire an employee, there’s a whole set of additional costs and overheads that can significantly impact on your bottom line. Let’s break them down: 1. ACC (Accident Compensation Corporation) When you employ a permanent employee, you’re obliged to contribute to ACC levies. These can add up and represent a substantial ongoing cost to your business. Contractors, on the other hand, handle their own ACC payments, freeing you from this financial burden. As I write this it sits at approx. $0.63 per $100 of payroll. Example being, a $100K Salary = $630 per annum. 2. Kiwisaver Permanent employees are entitled to Kiwisaver contributions from their employers. While it’s a great benefit for them, it’s an added cost for your business. Contractors manage their own retirement savings, releasing you from this expense. At the minimum contribution of 3% that is $3,000 based on a salary of $100,000 per annum. 3. Training and Development Investing in the professional growth of your employees is essential. However, it can be costly and time-consuming. Contractors typically bring their existing skills and experience to the table, minimising the need for extensive initial training and ongoing development programs. Various benchmarks have this between 1% - 5% of an individual’s salary. Based on a $100,000 per annum this could be between $1,000 - $5,000 per annum. 4. Fringe Benefit Tax Providing certain benefits to your employees can trigger fringe benefit tax liabilities. Contractors are not subject to this tax, which means you can offer perks without worrying about additional financial implications. 5. Benefits Permanent employees often receive benefits such as health insurance, paid annual leave, and more. While these are important for staff retention, they can substantially increase your personnel expenses. On the other hand, contractors manage their own benefits and extras, giving you more predictability in your budget. 6. Insurance A business is responsible for looking after professional indemnity and public liability insurance which cover their permanent employees. On the flip side, contractors typically have their own insurance coverage, reducing your insurance-related costs. 7. Overheads Beyond the salary, permanent employees come with a host of overheads like office space, equipment, and administrative support. Contractors usually operate independently, sparing you from these additional expenses. 8. Productivity It is not as simple as multiplying a contractor’s rate by the number of hours in a week, and then extrapolating that out for the year. They only get paid for the hours they work, which doesn’t include any annual leave, sick leave, or public holidays. You only pay them based on what the hours they actually worked. So, what’s the bottom line? Hiring contractors can be a cost-effective choice when you consider the bigger picture. While the hourly rate may seem higher, it’s essential to factor in the myriad of savings associated with not having to manage all the costs and overheads that come with permanent employees. Don’t get me wrong – permanent employees are valuable assets to any organisation. They bring stability, commitment, IP retention, and a sense of belonging to your team. But the key is understanding the differences between contractors and permanent employees and leveraging them to your advantage. Think of hiring contractors as a strategic move that provides the flexibility to scale your workforce up or down as needed, without long-term financial commitments. It’s not about one being better than the other; it’s about making informed choices that align with your business objectives. So, the next time you consider bringing in a contractor, remember the true cost isn’t just about the hourly rate- it’s about the holistic value they bring to your organisation.

Recruit I.T. GTS FAQs

12 Feb, 2024
Intro to Recruit I.T. GTS Recruit I.T. GTS is the brainchild of Directors Kaleb Leeming and Ben Allen. Established in 2006, Recruit I.T has been offering contract and permanent resources to the technology community in New Zealand for many years, and has helped organisations to deliver their business goals in a timely and cost-efficient manner. More recently, and prior to COVID, Recruit I.T. has been managing and onshoring capability and talent into the New Zealand market to help address growing talent shortages and fill specific technology skillsets that our customers need to scale their business and deliver numerous products and projects to their customers. At present, Recruit I.T. has employed and migrated over 50 international candidates to New Zealand - this has resulted in projects being delivered on time along with significant cost savings. Recruit I.T. Global Talent Solutions aims to bring high-skilled tech talent to your company quickly, affordably, and effectively. We have successfully created a global network of highly adept and intelligent I.T. professionals that can help scale your business scale for success. Everything you need to know about Recruit I.T. GTS Learn more about Recruit I.T. Global Talent Solutions through these Frequently Asked Questions (FAQs). 1. How does RIT GTS work? GTS offers bespoke solutions to cater to every business need. We can help relocate candidates to New Zealand or we can onboard candidates remotely using our partners around the globe. We’ve been running this model since 2014 so we are well-versed at finding a solution to every resourcing problem!  2. How is it different from other recruitment offerings in NZ? Recruit I.T. utilises international talent to fill the gaps when the local market is talent-short or lacks niche skillsets. We follow and curate a model that is both efficient and cost-effective, and low risk. Reach out to our Director Kaleb Leeming to know more about our scope of work and services. 3. What skills can the clients access/roles can they fill with GTS that they can’t through traditional recruitment? There really isn’t an I.T. role that can’t be filled! NZ has a smaller pool of talent than other countries, so when you start looking for staff in specific areas of I.T., it’s easy to falter . We’ve had success recruiting in the development space (Java, Ruby, Mobile), as well as platform specific expertise including Salesforce, Dynamics, PEGA, SAP, ServiceNow, and Workday to name a few. We would love to help other businesses in NZ to capture talent not easily accessible in the New Zealand market. 4. How have offshore candidates changed over the years in terms of their non-negotiables for new work opportunities i.e., higher salary, permanently migrating to NZ, etc.? Overseas candidates certainly have more options now the world has opened. So, flexibility, team culture, and working on an exciting project are normally high on the wish list, along with salary. For those candidates looking to migrate from overseas, we are seeing those with families being put off by all the media around the high cost of living right now, and typically countries that have been seen as a lower cost, have risen in salaries through the increase in the remote workforce and countries such as the US a Europe expanding there reach globally. 5. How does your engagement model work? Each engagement will differ depending on the outcome you are looking to achieve. However, we generally run three (3) types of models for our customers: Offshore/Remote Capability : We hire these individuals as either permanent or contractors, and they work based in their own country (most often, the Philippines), within the New Zealand time zone. Offshore to Onshore Capability : This is a hybrid model to the offshore capability, where customers contract capability remotely, experience whether individuals are suitable, then at a future date look to bring these individuals into NZ. Onshore Capability : Here we go straight to moving candidates into New Zealand. We can either take the risk on and hire them permanently or facilitate the recruitment process where our customers can hire them permanently directly. FAQs Here are also some of the most Frequently Asked Questions about Recruit I.T. GTS: (For Clients) Q: When can we start hiring employees? A: We would organise an initial briefing to understand your requirements along with what one of our service offerings would work best for you. From what, we would begin preparing an initial short-list with the view of interviews within 1 – 2 weeks. Q: What’s the step-by-step process in availing the services? A: You provide us with your requirements. We will find a small shortlist of talent for you to interview. Once you are happy making an offer, we will work through the immigration process (for onshoring) or the onboarding process (for those working remotely offshore) Your new hire starts! Q: Do we need to pay for your services even if there were no successful hires? A: No. You only pay a success fee if we are successful in placing a hire. Q: What other services do you provide? A: Outside of offshore talent, we can supply local contract and permanent recruitment services. Q: How long does the recruitment process take? A: The speed of the process is up to you but the quicker, the better! Locking in interview times can often slow the process down, so if you can commit to some interview times at the beginning of the process, we can usually have interviews completed within two weeks of obtaining requirements. Q: What type of sectors/industries have you catered to? A: We specialise in technology related capability and have clients in government, utilities, banking, insurance, media, and entertainment. Scale your business for success! As with any solutions, Recruit I.T. GTS can adjust and alter any aspects of the proposals that we send to our clients depending on the goals and demands of your business. If you require any further information about Recruit I.T. GTS and the services we offer, contact Kaleb Leeming (Director) at kaleb@recruitit.co.nz/ 027 201 8152. Read more about Recruit I.T. GTS here .
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