Digital sector ‘nearly invisible’
WELLINGTON’S burgeoning digital sector is a major contributor to the region’s economy but is flying under the radar compared to film and tourism, an academic report has found.
A Victoria University of Wellington report, Wellington’s digital sector – growing under the radar, explored challenges faced by companies in the sector in attracting, retaining and developing staff.
High-profile sectors such as tourism and film were growing fast but only contributed 2.9 per cent to Wellington’s gross domestic product (GDP).
In comparison, work classified as information, media and telecommunications contributed 6 per cent to the region’s GDP, while professional scientific and technical services contributed 10.7 per cent.
Project leader Dr Richard Norman, from Victoria’s school of management, said the digital sector’s low profile was largely because it operated on a businessto-business model, focusing on niche markets with a predominantly international client base.
‘‘For some in the industry, it’s a cause of frustration. They feel Wellington as a digitally creative centre is too much of a secret.’’
The pioneers of Wellington’s digital sector, Trade Me, Xero and Datacom, which had public profiles, had been joined 500 smaller companies in the past 10 years. More than 20,000 people, or 10 per cent of the region’s workforce, worked in digital sector roles, Norman said.
‘‘It’s a sizeable part of the workforce, but the public has barely heard of them.’’
Digital was the bright spot for Wellington and going unnoticed would cost when it came to public awareness and jobs, he said.
The report identified recruitment as a challenge of being nearly invisible to the public, with companies increasingly recruiting internationally.
However, as businesses in the sector became more established, they were looking at what they needed to do to create a profile, Norman said.
The 140 business owners and employees interviewed for the report felt positive about further growing Wellington’s digital sector and the potential to develop an international reputation as a leading creative city. Many interviewees said the city’s compact size and emphasis on networking and collaboration helped cultivate the sector.
International forecasts had looked at how various jobs would change rapidly with evolving technology, but businesses in Wellington’s digital sector were working at the forefront of change and keeping up, Norman said.
The report was one a number of studies undertaken by the university into the Wellington economy, with the next to be published before June.
The studies were prompted by Prime Minister John Key saying ‘‘Wellington was dying’’, Norman said.
The report was released to 150 industry professionals at the university on Thursday night.