Our 2021 research report, The State of IT for NZ’s SMEs, uncovered a concerning trend we call the "Partnership Paradox." While working with an IT partner generally leads to better outcomes, the data revealed a significant exception that should serve as a wake-up call for every business owner.
In the report, we found that 18.9% of small businesses who were working with an IT partner had still attempted and given up on their digital transformation efforts.
Let that sink in. Nearly one in five small businesses who were paying for expert help still hit a wall, citing a lack of appropriate resourcing, skills, or budget. This figure was dramatically different for medium-sized businesses, where only 7.1% reported the same outcome. It begs the question: are some businesses getting a bad deal?
From Tactical Support to Strategic Value
The report suggests that simply "having a partner" is not enough. A partner who only provides tactical support—keeping the lights on, resetting passwords—is not a transformation partner. The data shows that for a significant portion of the market, this reactive model is failing to deliver.
As the report asks directly: "For some small businesses maybe it’s time to evaluate if their IT partner is delivering as expected and consider a change of course."
A true technology partner should be a strategic asset, not just an operational cost. They should be:
Driving Strategy: Helping you define a clear technology roadmap that aligns directly with your business goals.
Challenging Your Thinking: Pushing for genuine process transformation, not just new apps.
Delivering Measurable Value: Connecting technology investments directly to outcomes like increased revenue, improved efficiency, or better customer experiences.
It's Time to Scrutinise
The data is clear. If you're a small business and you feel like your digital transformation efforts are stalled despite having an IT partner, you're not alone. But it's not a situation you should accept. It’s time to scrutinise the relationship. Is your partner an engine for growth or an anchor holding you back? The success of your business depends on the answer.
To see the full data breakdown on how IT partners impact success rates and what the top-performing SMEs are doing differently, download the complete report: The State of IT: New Zealand’s Small and Medium-Sized Business Edition
