New Zealand’s economy has staged an impressive recovery, moving from a technical recession in 2023 to 0.7% GDP growth in the December 2024 quarter. Central to this economic revival is the Software as a Service (SaaS) sector, which has not only withstood economic pressures but has also accelerated growth, delivering scalable solutions that empower businesses across industries.
Businesses that embrace SaaS will be better positioned for sustained growth and competitiveness. With economic momentum building, now is the time to invest in technologies that enhance efficiency, boost productivity and strengthen resilience.
SaaS – the engine of business growth in New Zealand
SaaS has become a cornerstone of New Zealand’s business landscape, enabling small businesses to adopt powerful digital tools that are cost effective, require minimal upfront investment, scale with growth and reduce the need for complicated IT infrastructure.
From automating workflows to enhancing customer engagement, SaaS is redefining how businesses operate. Its cloud-based nature allows businesses to adapt and innovate swiftly, making it particularly valuable for small and medium-sized enterprises (SMEs) – the backbone of New Zealand’s economy.
A powerhouse industry in uncertain times
During economic downturns, traditional sectors often contract, shedding jobs and delaying expansion. But SaaS tells a different story.
Startups and scale-ups in fintech, healthtech, agritech, and digital services are not just surviving, they are thriving. Why? Because software is borderless. A downturn in one economy doesn’t diminish the need for digital transformation elsewhere.
New Zealand’s Digital Technologies Industry Transformation Plan is set to supercharge this growth, with aims to accelerate the sector’s compound annual growth rate (CAGR) from 16% to 19%. If successful, the SaaS industry could be worth nearly $14 billion by 2030 and create up to 58,000 new jobs across engineering, sales, marketing and customer success.
The true strength of SaaS lies in its scalability. Unlike industries reliant on raw materials and large facilities, SaaS only requires talent, innovation and an internet connection, making it an agile and resilient sector for the future.
How SaaS is helping Kiwi SMEs navigate economic challenges
For small and medium-sized enterprises (SMEs), economic uncertainty is nothing new. Cash flow pressures, rising operational costs and shifting customer expectations are daily realities for business owners. However, technology is now tipping the scales in their favour.
More Kiwi businesses are turning to SaaS platforms such as Thryv to automate operations, streamline payments, enhance customer engagement and reduce costs. Once reserved for large enterprises, these sophisticated tools are now accessible to SMEs, levelling the playing field.
The numbers speak for themselves with SMEs that embrace digital solutions boosting their productivity from 7 per cent to 50 percent by adopting these technologies.
Future-proofing through digital innovation
The convergence of AI, automation and digital payments is fundamentally reshaping how businesses operate. Those who adopt these innovations will strengthen their resilience against economic volatility, while those who resist will struggle to compete.
And data? It has become the new currency of business success. Businesses leveraging data insights are making precision-driven decisions that set them apart from competitors. Instinct alone does not cut it – insights and analytics are the key to long-term growth.
New Zealand’s SaaS sector has already proven its ability to fuel economic expansion. The real question is, will businesses seize this momentum to secure their future and stay competitive?
By Elise Balsillie, Head of Thryv Australia and New Zealand
