Green Shoots Are Appearing!
I am a glass half full type of character but certainly the last 4 weeks have been the busiest I / we have been for a number of months. I appreciate times for SMB’s aren’t ideal and many in retail aren’t back to the same levels they were this time in 2019, but I believe we have good momentum leading into Xmas, New Year and 2021.
Why? There are a number of reasons / possibilities:
Govt. departments taking their funds from Budget 2020 and using them!
Govt. departments are taking their COVID-19 funds and using it which is flowing through the services, consulting and recruitment markets.
Organisations that cut during and post COVID lockdown realising they now need talent to moving forward.
Overseas vendors hiring in the local market due to them not being able to bring in their talent from their offshore teams
Organisations who paused during and post COVID lockdown having confidence that New Zealand is in a good-ish space and investing in initiatives / projects.
Due to organisations wanting different and innovative services than what they have now, they are calling upon and needing different resources and outcomes from their vendors / service providers. e.g. the rapid rise of RPA solutions
More and more Kiwi’s returning home with some moving their business back to New Zealand with them.
You’ve heard me bang on about the demand for Business Case Writers with BBC knowledge. Now we are seeing strong demand for Service Design Thinking expertise.
We are seeing some life in some NZ stocks which have been taking a beating recently which funnels money into listed stocks. Air New Zealand is springing back to life which is pleasing to see.
There certainly has been an increase in demand for people on Fixed Term Contracts but we have also seen organisations open to and loving solutions such as Teams-as-a-Service.
What have I missed?
I know we aren’t out of the woods by any means and that debt levels are at a record level. I note that Infometrics believe we are in for a Double Dip recession in 2021 BUT I remember reading that unemployment will be at 10% mid to late 2020 and I think today we sit at 5.3%.
So long live the current positivity in the current IT services market.