April 2, 2025

Why Tech Employers Should Consider a Contractor Workforce

6 min read

We’ve finally “crawled out of recession” according to the experts. Following four consecutive quarters of economic contraction, the latest Stats NZ figures showed GDP rising by 0.7%. While this might not sound like much, it signals a turning point – one which the team here at Absolute IT have been talking (and writing) about for some time.

After a tough stretch, we seem to be entering a new chapter marked by cautious optimism, and a sense that it’s time to get moving again. Across the country, we’re seeing that some of the digital transformation programmes, AI initiatives, cybersecurity upgrades and infrastructure modernisation projects that were paused or delayed last year, are gaining traction again.

Budgets are being finalised, and business cases are being re-evaluated. Tech leaders are keen to get their businesses moving again but need to ensure they have the capability to do so, and we’re seeing that resourcing remains an issue.

If you’re in this boat, then I’ve got a workforce resourcing strategy that could be the ideal solution for you – contractors.

The Perception Problem

There’s no denying that contractor spend (especially in the public sector) has attracted criticism in recent years. Headlines about ballooning consulting budgets and calls for caps on contractor use may have incorrectly created the impression that engaging contingent workers is wasteful, or a sign of poor planning.

This narrative oversimplifies a complex issue. When used strategically, contractor hiring is not a sign of inefficiency, but instead, an effective tool for agility. In a climate where permanent headcount growth is still under tight control, and tech skills shortages persist, the ability to access proven expertise on-demand is essential.

A contractor workforce is not a stopgap but a deliberate choice that supports forward momentum for your business.

Three Key Reasons To Hire Contractors in 2025

1. Project-Driven Resurgence

Organisations across Aotearoa are restarting transformation efforts with a focus on AI, automation, data engineering, and cloud modernisation. Many of these projects were deprioritised in 2024, but are now back on the radar, and often with shorter timelines and stronger ROI expectations.

Contracting offers a practical way to accelerate progress. By bringing in highly skilled professionals on a project-by-project basis, organisations can tap into niche expertise, without committing to long-term roles.

The focus isn’t just on speed – it’s on impact. Assuming you engage with a reputable agency, with a reliable and deep talent pool, then the contractors you use will have years of experience behind them and be ready to make a positive impact from day one.

Whether it’s an ERP upgrade, a new data platform rollout, or a cybersecurity overhaul, the ability to quickly build a team can be the difference between staying competitive or falling behind.

2. Budget-Conscious Flexibility

We know that while confidence is slowly returning to the market, budgets are still being watched closely. In this environment, contractor resourcing allows for more controlled investment. It gives you the ability to manage scope, define deliverables, and allocate spend with clarity, all without the overhead costs or long onboarding cycles associated with permanent hires.

The ability to scale up or down in line with evolving priorities is a major advantage, especially in the current economic landscape. Contracting also enables clearer cost-benefit analysis, helping leaders make sharper business decisions as conditions shift.

3. Speed to Execution

The tech talent shortage hasn’t gone away, and unfortunately, we’re expecting the skills gap to widen in 2025. There simply aren’t enough of the in-demand skills here in New Zealand, which means sourcing the talent you need will be challenging and that hiring permanent staff may take months, particularly for senior or specialist roles. Contractors, on the other hand, can be engaged in a matter of days or weeks. For organisations playing catch-up after a stalled 2024, this speed is crucial.

What Tech Contractors Bring to the Table in 2025

Contractors in 2025 are not simply filling seats. There’s a surprisingly large tech talent pool of high-impact specialists who thrive on ambiguity and change, and who prefer the contractor life. Many have built their careers across multiple industries and environments, giving them a breadth of experience that translates into faster problem-solving and more resilient delivery.

These contractor professionals are often called in for ‘high-stakes’ work, where the cost of failure is high, and the need for momentum is urgent. What sets these contractors apart is their ability to integrate quickly, deliver value from day one, and exit cleanly when the work is done. They are a catalyst for positive organisational progress.

Common Use Cases

Contractors are being used strategically across a wide range of initiatives in the tech sector right now. Some of the most common use cases include:

AI and data engineering: Short-term expertise for pilots, data pipelines, and machine learning models.
Cybersecurity: Risk assessments, penetration testing, and security uplift programmes.
Cloud migration: Technical architects and engineers supporting cloud-native infrastructure.
ERP and CRM upgrades: Functional consultants, change managers, and integration specialists.
Transformation delivery: Programme managers, BAs, and project coordinators keeping delivery on track.

As you can see, this isn’t a case of gap-filling or making do, contractors in these roles are mission-critical contributors.

A Hybrid Workforce Strategy

One of the lasting effects of the pandemic years is a more dynamic view of workforce structure. Leaders have seen the value in blending permanent and contingent capability to maintain agility and resilience. Contractors play an important role in this hybrid model. They help relieve pressure on permanent teams, reduce the risk of burnout, and allow internal staff to focus on core operations.

They’re also an effective solution during hiring freezes, parental leave cover, or when internal resources are seconded elsewhere. Given the expected ongoing talent shortage, this flexibility is more important than ever.

Final Thought: Contracting is a Strategic Lever

As we look ahead to the rest of 2025, one thing is clear: the organisations that will thrive are those that move decisively, not cautiously. Rebuilding momentum requires speed, adaptability, and access to the right skills at the right time.

As you can probably tell, I truly believe that hiring contractors isn’t a ‘compromise’. I’ve seen firsthand that building a contractor workforce for your organisation can be a valuable resourcing strategy. For tech leaders under pressure to deliver more with less, it provides the firepower to push ahead, without locking in fixed costs. Contracting is part of the new normal, and in this stage of New Zealand’s economic recovery, it might just be your best asset.

Ready to Move?

If you’re planning to kickstart projects this financial year and need proven tech talent to hit the ground running – let’s talk. Absolute IT connects employers with experienced contractors across Aotearoa who are ready to make an impact. Whether you need one expert or a whole project team, we’ll help you find the right people to get things moving.

Paul Kelly

Business Manager & Senior Consultant

As a Recruitment Consultant, Paul Kelly believes the right people are the most important asset in any business.

Why Women in Tech Leave, and What Companies Can Do About It

8 min read

‘Accelerate Action’. It’s a rallying, inspiring worldwide call, and it was the theme for International Women’s Day was last Saturday 8^th March. We really enjoyed seeing everyone come together in their own way to celebrate the achievements of women across the world, and it’s also given us a lot of food for thought here at Absolute IT…

Reading through the IWD resources, we were shocked to learn that current data suggests it will take until 2158 to reach full gender parity. With that in mind, it feels like the right time to have an honest conversation about women in tech, here in Aotearoa New Zealand. Yes, progress has been made, and we should celebrate it. But there’s still work to be done. According to the most recent data, women constitute only 29% of New Zealand’s digital technology workforce.

So, what can we do? Here are my thoughts on the gender parity challenge for our tech sector and ideas for practical solutions that might help solve it—with big thanks and reference to the excellent resources at IWD.com.

“‘Accelerate Action’ emphasises the importance of taking swift and decisive steps to achieve gender equality. It calls for increased momentum and urgency in addressing the systemic barriers and biases that women face, both in personal and professional spheres.”

Uncovering The Real Source

There’s always chat in the market about getting more girls and young women into STEM. While building a pipeline of talent is part of the solution to getting more women into tech careers, there’s also another pressing problem: women are leaving tech at nearly twice the rate of men. A global study by Accenture found that women leave tech roles at a 45% higher rate than men with similar patterns observed across the Asia-Pacific region

The truth is, hiring more women isn’t enough if they don’t stay.

If NZ tech businesses are serious about closing the gender gap, there needs to be a focus beyond increasing entry-level hiring. Collectively, we need to tackle the widely acknowledged barriers that women face, such as lack of career progression and exclusionary cultures. It may feel awkward to acknowledge these issues (“..surely not in MY organisation”), but it’s important to recognise these are real, systemic issues that are well supported by current research.

So, how do we fix these issues? We do need a strong pipeline—but that’s just the start. There are lots of other ways we can accelerate change and make the tech industry a space where women thrive.

First: The Pipeline Problem

In New Zealand, only 25% of IT graduates are women, and similar patterns exist across the Asia-Pacific region. So yes, I think it’s fair to say that there aren’t enough women entering the tech industry. In my reading and research, I found this pipeline problem goes back well over ten years, so I think that our approach and any solutions need a bit of a refresh. Here are three ideas that channel the IWD theme to #AccelerateAction.

1. Move Beyond ‘Awareness’

Students need more than just information about tech careers. Young women need real opportunities, positive role models, and easy access. There’s definitely fantastic stuff happening in the market, for example, initiatives like “ShadowTech Day” where female students shadow women in tech roles. But what we need is more investment on a sustained basis; more industry partnerships with schools, more hands-on coding programmes and more exposure to what a tech career actually looks like, from an early age.

2. Expand the Idea of the ‘Tech Job’

Unfortunately, there remains a bit of a misconception about what a tech job can be, and this significantly impacts young women’s participation. Studies from organisations like Girls Who Code and UNESCO show that many women have interests that align perfectly with tech careers, but they don’t recognise the connection. For example, women interested in healthcare often don’t realise how technology roles can directly impact patient care through healthtech innovations. We need to redefine tech careers, highlighting non-traditional tech roles e.g. UX design, product management etc., and build more industry partnerships with regular career talks, internships and networking events targeted at women.

3. Role Models in the Media

Another aspect to consider is representation. We need more positive portrayals of women in diverse tech roles in media and marketing campaigns—it truly makes a difference. Have you seen that LinkedIn post about ‘The Scully Effect? This is a phenomenon where the character Dana Scully from The X Files inspired women to pursue careers in STEM fields—and it’s supported by empirical data. Highlighting local women succeeding in varied tech roles creates powerful, relatable role models for our young people.

4. Fix The First Step

The final part of the pipeline solution is to fix the ‘first step’ aspect of the problem. There are many indicators that suggest that women are being hired at lower rates than men, for entry-level tech roles. This can be fixed by auditing hiring processes to remove bias from job descriptions, assessments, and interview panels. The good news is that doing this is likely to be beneficial beyond supporting gender diversity, and will enhance diversity more broadly, increasing creativity and innovation, as well as having a positive impact on Employer brand.

The Dropout Crisis

Getting more women into tech isn’t enough if they then face blockers at every step of their careers. Women in tech are much more likely to leave this sector than their male colleagues, and leave tech roles at much higher rates than other types of jobs (50% vs 20%).

The percentage of women in tech in NZ is already low, and by mid-career, the gender gap in leadership becomes massive. The reasons are multifaceted: women don’t get promoted at the same rates as men, there are cultural challenges that push women out rather than welcome them in, and a ‘motherhood penalty’ faced by women with caregiving responsibilities. However, despite the complexity of these issues, there are steps that can be taken. To #AcccerlateAction, here’s what organisations can do right now:

1. Shift From Mentorship to Sponsorship

Women in tech don’t lack knowledge or skills, but they do lack equitable access to the informal power and recognition structures that drive career advancement. While traditional mentorship, with guidance, feedback, and advice is great (and no doubt appreciated!), alone it’s not enough. This is why a pivot to Sponsorship is needed. The role of a Sponsor is to actively advocate for women in places where decisions are made, and where women are often underrepresented or absent. Companies with formal sponsorship programmes, for example Mastercard, Cisco, and SAP, show significantly higher rates of women in leadership positions.

2. Take a Close Look at Promotion Rates

Slower promotion rates for women exists across most industries, but studies consistently show that the tech industry has particularly pronounced disparities, especially in leadership roles. Fortunately, we’ve seen some Kiwi companies like Xero and TradeMe making public commitments to gender-balanced leadership teams with measurable targets, but improvement is needed across the board. The first step is to understand what is happening within your own organisation; this means auditing promotion data to understand whether women are moving up at the same rate as men.

Some of the practical, actionable tactics we uncovered during research which can be used to balance promotion rates include:

Creating and publishing clear criteria for advancement and ensuring this is transparent throughout the business;
Sharing promotion statistics;
Addressing any possible bias in performance reviews, for example, training your managers to recognise and avoid common gender biases; and
Creating early leadership exposure for women with potential in your organisation, for example, rotational programmes that provide experience across functions.

Non-negotiables: Flexibility and Parental Policies

Despite the roll-back of remote and hybrid work arrangements that happened in some NZ sectors in 2024, it’s great to see that NZ tech employers have mostly retained their spot at the forefront of this fundamental shift towards flexible working.

So we’re starting with a decent base, but expansion, change, and embedding is needed to ensure the retention of women. This is because the challenges for women at the mid-to-senior level often include balancing caregiving responsibilities with progression, managing inflexible core hours, or navigating workplace cultures that can value in-office presence over output.

Changes that would help are:

Results-based performance evaluations;
Parental leave policies that don’t penalise career progression;
Mentorships that take into account flexibility needs;
Leadership development that doesn’t require traditional ‘full time in the office’ presence;

It would also be great to see a challenging of assumptions that link availability with commitment to the business. Let’s showcase more senior women who work flexibly!

Final Thoughts

We definitely need a stronger pipeline, and it would be great to see tech organisations investing further in helping to build this up. However, if women entering tech keep leaving in droves, we’re patching a broken firewall with duct tape.

Any approach to enhancing gender diversity in the tech sector needs to go beyond hiring. There’s lots of great potential tech talent out there, but there’s already so many talented women in the market right now! We need to tackle the systemic issues that keep women from staying and thriving in our industry, and ideally track our progress, because what gets measured, gets fixed. Women in tech are essential for innovation, profitability, and creating technology that truly works for everyone.

So what do you think? I hope I’ve inspired you to #AccelerateAction! If you’d like to carry on the conversation, feel free to connect with me on LinkedIn.

Abbie Trillo

Principal Consultant