A new report has highlighted a significant shift in New Zealand's tech sector, with nearly half of the country's largest tech exporters now employing workers overseas. According to the Deel report, in collaboration with the Technology Investment Network, 47% of employees at New Zealand’s top 200 tech exporting firms are based abroad.

This trend reflects a growing global workforce strategy among tech companies in the country, as they increasingly tap into international talent pools to address skills shortages and support expansion. The report shows that the distribution of overseas workers spans various tech subsectors, with HealthTech leading the charge, employing 5,065 workers outside New Zealand. Other major sectors seeing significant offshore employment include IT services and support (3,760 employees), software solutions (3,656 employees), and fintech (3,549 employees).

Among the most notable overseas regions where New Zealand tech companies are hiring is Australia, which remains a key market for talent. In 2024, New Zealand firms hired 304 workers in Australia, continuing a longstanding trend. However, other regions have also emerged as important sources of tech talent. Latin America saw the addition of 565 new workers, while Europe contributed 215 new hires.

Shannon Karaka, Market Lead at Deel for New Zealand and Australia, explained the broader implications of this shift: "New Zealand's tech exporters are increasingly global employers, now hiring and paying almost half their workforce in multiple international locations. Their ability to quickly build diverse, borderless teams at scale is vital to unlock new opportunities and position for growth."

The move towards international hiring is in response to the tightening global competition for tech talent. New Zealand firms have adopted dynamic hiring strategies that balance onshore recruitment with offshore expansion. This approach allows them to access specialized talent, leverage local knowledge, and create proximity to international markets—strategies that are critical to overcoming the unique challenges faced by New Zealand's tech industry.

Despite this global hiring push, the total workforce employed by New Zealand's 200 largest tech exporting firms has experienced a slight decline for the first time in a decade. As of June 2024, the sector employed 59,774 full-time workers, marking a 0.8% decrease compared to previous years. This drop in the workforce comes as companies adjust to shifting market dynamics and adapt to new hiring practices.

Alex Dickson, Head of Research at the Technology Investment Network, noted that the trend towards international hiring is helping tech firms in New Zealand address talent shortages and regional challenges. "This approach has been used with great effect to access talent, leverage local knowledge, and to create proximity — addressing areas where New Zealand faces inherent challenges," he said.

The findings of the report also come amid growing concerns about the future demand for tech talent across the region. In Australia, it is projected that the country will need 1.3 million tech workers by 2030, further intensifying the global competition for skilled professionals.

While the rise in overseas hires demonstrates the adaptability of New Zealand’s tech exporters, it also underscores the importance of maintaining a balance between local and international talent to ensure the sector's continued growth and global competitiveness.