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Datacom Group
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Datacom Group Limited is an Information Technology services company, offering management and consulting, cloud services, ITO, data centre services, custom software development, and payroll services. Datacom is the largest technology company in New Zealand. The company was started in New Zealand in 1965, but has expanded to operate in Australia, Malaysia, the Philippines, the United States and the United Kingdom, employing over 6,500 people across 26 offices globally.[3]

Key Information

The company's two biggest shareholders are Evander Management Ltd (the family company of John Holdsworth)[4] with 54.92 per cent and the New Zealand Superannuation Fund with 44.08 per cent. The New Zealand Superannuation Fund spent $142 million in 2012 buying out New Zealand Post's 35 per cent shareholding.[5] John Holdsworth stepped down as chairman of the board in 2012 and was replaced by New Zealand businessman Craig Boyce.[6]

Datacom was founded as Computer Bureau Ltd in Christchurch, New Zealand, in 1965. It expanded nationally through the holding company Datacom Group Ltd in 1971, before opening offices in Australia in 1992, and in Asia in 1994. Greg Davidson serves as Group CEO.[7]

History

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1960s

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Datacom was founded as Computer Bureau Ltd in 1965 by two Christchurch accountants, Dr Bernard Battersby and Paul Hargreaves.[8]

A group of clients put up the original capital for the company – £30,000 – and an order was placed for an ICL 1902 computer, which didn't arrive in New Zealand for another year.

The company hired its first systems analysts and programmers in August 1965 and installed the first computer for a client in September of the following year.

In 1968, the company, now called CBL added additional offices in Wellington, Auckland and Hamilton between 1968 and 1970.[9]

1970s

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In 1970, Hargreaves quit his family's accounting firm to run CBL full-time, and the business expanded to Auckland via the acquisition of the Fletcher Computer Bureau.[10]

In 1971, the Datacom Group holding company was established.

CBL began offering remote on-line services through onsite terminals beginning in 1976.

1980s

[edit]

CBL expanded its software development arm, introducing User-11, the first 4GL (Fourth-generation programming language) seen in New Zealand in 1981. The company also set up a data communications network and a New Zealand-wide timesharing service in the early 1980s initially using DEC PDP 11/70s and then added DEC VAX 11/750s and PDP 11/84s. These systems were also used for Facilities Management customers including the Canterbury Building Society and Hertz Rental Cars.

In 1983, CBL was the first to bring Oracle database technology to New Zealand for the New Zealand Dairy Company (now Fonterra).

In 1984, CBL changed its name to Datacom. Paul Hargreaves was appointed executive director, and later CEO when Battersby retired.

Datacom merged with computer-services company CCL (not to be confused with the Spark subsidiary Computer Concepts Limited) in 1989, added its facilities management and payroll technology to its already established payroll division[9]

1990s

[edit]

In 1991, Datacom signed its first large outsourcing contract in Auckland with Telecom Directories. The same year Datacom Wellington merged with the IT department of New Zealand Post, boosting staff numbers by 90.

In 1992, Datacom established a contact centre in Sydney, and in 1994 its first Australian office. This expanded its NZ-based services to Microsoft Australia. This regional service provided diagnostic technical support services to clients and customers. Datacom began exporting some of its facilities management and IT services into its Australian offices in the late 1990s, leading to the company's first data centre in Australia.

1996 saw the company open its first office in Asia, in Malaysia's Kuala Lumpur.

The business also further established partner programs and sales services with the channel and reseller community.

2000s

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During the 2000s, Datacom made a series of acquisitions that spread its services to other locations in Australia. In 2004, it purchased GlobalCenter for $7.15 million, its second data centre,[11] and the following year, the company purchased NetOptions to establish a presence in Queensland.[12]

In 2003 Datacom merged with Connect Interactive Business Services to create Datacom Connect, which largely expanded their call centre offerings.

It expanded from this base in 2007 after acquiring IT services company Agire Pty Ltd, located in Townsville.

Through start-up opportunities with local partners, Datacom moved into South Australia in 2006, and Western Australia in 2007. By the end of 2007, the company had acquired a third data centre in Sydney through Hansen Professional Services. [13] Its fourth data centre came in 2011 in Western Australia.[14]

Datacom commenced business in Asia in 1994, building contact centres in Malaysia in 1996, and the Philippines in 2008, at the same time establishing a presence in China.[15]

In 2009 Datacom opened its Auckland data centre, Orbit.[16]

2010s

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Datacom Technical Security Services is founded by former DSD security expert, Richard Byfield.[17]

In 2010, Datacom opened a sister facility to Orbit, Gloucester, in Christchurch. It opened one week before the 2010 Christchurch Earthquake.[18]

Datacom opened a sister facility to Orbit and Gloucester, Kapua, in Hamilton in 2013.[19]

In 2013 Datacom also sold the contact centre arm of its Asia business,[9] but continued to serve the market with IT services.

In the same year Datacom acquired a SAP payroll firm in Melbourne to establish a strong relationship in the Australian health sector, and as a provider of SAP services.[20]

Datacom purchases WA-based IT services provider, XciteLogic, after it collapses.[21]

In 2014, Datacom announced its acquisition of Tauranga-based software company Origen Technology Ltd.[22]

August 2014 – Datacom co-founder, Paul Hargreaves, died after a short illness.[23]

18 September 2014, Datacom acquired a 20% stake in health informatics company, Smartward[24]

The company also produced the (then) world's largest SAP migration to the Microsoft Azure cloud platform, with the world's largest kiwifruit exporter, Zespri.[25] For its work, Datacom was awarded Microsoft's Cloud Enterprise Award at the 2013 Microsoft NZ Partner Awards.[26]

In March 2015, Datacom won the Australian Federal Department of Health support services contract after a competitive tender process. The $242 million, five-year deal will see Datacom providing technology infrastructure and support services under a fully managed, consumption-based model.[27] This joined its other Australian long term government contracts, such as Australian Customs, Australian Border Force and CrimTrac, the Department of the Environment, the Australian Taxation Office, and Airservices Australia.

In July 2015, Datacom was announced as Australia's first company to join Amazon Web Services Managed Service Program, one of only 20 worldwide.[28]

In November 2015, Microsoft Australia announced Datacom as one of the latest partners to join its one-tier Cloud Solution Provider (CSP) program, which allows them to own the billing for products such as Office 365.[29]

Datacom opened its third office in Melbourne in April 2016, bring 100 new jobs to the region.[30]

In August 2016, Datacom launched its Augmented Reality practice, the ANZ region's first,[31] focused around Microsoft's Hololens.

In September 2016, Datacom was selected to deliver the Western Australian State Government's $1bn GovNext-ICT programme. This will encapsulate a blend of data centre, server, cloud services, storage and telephone services across all state government departments.[32][33]

In December 2016, Datacom won a contract to supply IT infrastructure and support services to Toyota Australia, delivering end-to-end services following a competitive tender process.[34]

In March 2017, Datacom New Zealand consolidated its five existing Auckland offices into a single location in Auckland's Wynyard Innovation Quarter.[35]

Datacom completed Australia's first migration of SAP HANA into AWS, by taking $800 million-turnover resources company Oz Minerals into the cloud in early 2017.[36]

Datacom Chairman, Craig Boyce, announced in November 2017, that Greg Davidson, then Datacom Systems ANZ CEO, would succeed Jonathan Ladd, as Group CEO.[37] Ladd became the Chairman of the International Business, and Greg Davidson formally took over the Group CEO role on 31 March 2018, alongside a new leadership team and organisational structure.[38]

The Datacom Foundation was established in 2019 to provide long-term support for the children of families affected by the Christchurch Mosque Shootings and help them build a brighter future through education.

2020s

[edit]

In July 2022, Datacom secured a four-year contract with Transport for NSW to provide network operations and a high-speed digital ecosystem to support customer service.

In 2023, Datacom moved it corporate headquarters from the building formerly known as Datacom House on Jervois Quay in Wellington to the Asteron Life Building at 55 Featherston St in Wellington.

Financial results

[edit]

At the conclusion of the 2023/2024 NZ Financial Year (FY24), Datacom reported revenue of NZ$1.47bn, down from $1.49 billion in the prior year (FY23). Net profit before tax was NZ$41m, up from NZ$8m the previous year. Full-year operating cash flow remains strong at $139 million, and the business continues to perform with low debt levels.[39]

Further reading

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References

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Revisions and contributorsEdit on WikipediaRead on Wikipedia

Datacom Group

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Datacom Group Limited is an information technology services company headquartered in Auckland, New Zealand, specializing in cloud computing, cybersecurity, data center management, and enterprise software solutions for businesses across Australasia and Asia. Founded in 1965 in Christchurch as Computer Bureau Ltd by Dr. Bernard Battersby and Paul Hargreaves, the company was renamed Datacom in 1984 and has since expanded internationally, entering the Australian market in 1994 and establishing operations in locations including Sydney, Melbourne, Perth, and Kuala Lumpur. As of March 2025, Datacom employs 5,375 full-time equivalent staff across 26 locations and operates four data centers in New Zealand powered by 100% renewable energy, with a commitment to achieve net carbon zero status by 2030. The company delivers managed IT services, including and AWS cloud partnerships, cybersecurity operations centers (SOC) with over 170 specialists in , and custom ERP software like Datascape for local governments and enterprises. In its fiscal year ended March 2025, Datacom reported revenue of NZ$1.48 billion, a slight increase from NZ$1.47 billion the previous year, alongside a net profit after tax of NZ$37 million and operating cash flow of NZ$164 million. Notable milestones include introducing technology to in 1983 and ranking fourth in New Zealand's Technology Investment Network (TIN) for exports. Under CEO Greg Davidson, Datacom emphasizes AI-driven innovations and sustainable technology practices to support client growth in a competitive ICT landscape.

Company Profile

Founding and Headquarters

Datacom Group traces its origins to 1965, when it was established as Computer Bureau Limited (CBL) in , , by accountants Dr. Bernard Battersby, then Dean of Commerce at the , and Paul Hargreaves. The company was formed to provide shared computer bureau services, enabling businesses without the resources for in-house computing to access mainframe processing for tasks like and . A group of clients funded the initial £30,000 investment in a computer system (equivalent to approximately NZ$60,000), marking one of New Zealand's early forays into commercial during an era when mainframes were prohibitively expensive for most organizations. By 1976, CBL had expanded its offerings to include remote online services via onsite terminals, allowing clients real-time access to computing resources. The company experienced rapid domestic growth in its early years. In 1968, CBL opened its first branch office in , followed by Hamilton in 1969 and in 1970, solidifying its presence across key centers. This expansion supported broader delivery of IT services nationwide. In 1971, the Datacom Group was formed to oversee operations, reflecting the firm's evolving structure. The name evolved further in 1984, when CBL rebranded to Datacom, aligning with its growing emphasis on data communications and systems integration. Datacom's headquarters began in Christchurch, where the company was founded, but shifted over time to reflect its operational hub in the capital. In 2023, it relocated its to the Asteron Centre at 55 Featherston Street in , a modern facility designed to foster collaboration with features like harbor views and flexible workspaces. This move supported the needs of its Wellington-based staff, numbering nearly 1,300 since the office's establishment in 1968. A significant personal milestone occurred in 2014 with the death of co-founder Paul Hargreaves at age 70, following a short illness; Hargreaves had been instrumental in steering the company through its formative decades.

Ownership and Scale

Datacom Group has remained a since its founding in 1965, with no public listing on any . The company's primary ownership is divided between two major stakeholders: Evander Management Limited, the investment vehicle of the Holdsworth family (majority shareholders since a 1989 merger), which holds approximately 55% of the shares, and the , which owns the remaining 45%. This structure traces back to a significant 2012 transaction in which the acquired a 35% stake from New Zealand Post for NZ$142 million, solidifying its position as a key investor alongside the Holdsworth family's . As New Zealand's largest domestically owned IT services provider, Datacom Group demonstrates substantial scale in its operations. For the ended March 31, 2025 (FY25), the company reported of NZ$1.48 billion, reflecting a modest increase from NZ$1.47 billion in FY24. Its workforce stood at 5,375 employees as of March 2025, down from 6,131 the previous year due to efforts focused on AI integration and operational efficiency. Datacom maintains a broad operational footprint, with 26 locations across , , (including and the ), and select international markets, supported by four data centers. This network enables the company to deliver IT consulting, managed services, and infrastructure solutions to and enterprise clients regionally and beyond, underscoring its status as a leading player in the IT sector.

Historical Development

Establishment in New Zealand (1960s–1970s)

Following its establishment as Computer Bureau Ltd. in , Datacom expanded its bureau services to key urban centers across , opening an office in in 1968, followed by Hamilton in 1969 and in 1970. This strategic rollout enabled the company to serve a growing clientele of businesses seeking outsourced , leveraging its initial ICL 1902 mainframe for tasks like COBOL-based systems. By the early 1970s, Datacom had evolved from a modest local operation into a national leader in commercial , with annual revenue reaching $1 million by 1971 through services tailored to enterprises such as the New Zealand Dairy Company. The company's focus on shared computing addressed the era's demand for efficient, cost-effective solutions in an economy where individual firms rarely invested in their own hardware. Datacom faced significant early hurdles due to New Zealand's underdeveloped infrastructure, including the prohibitive expense of mainframes—Datacom's leased system alone required substantial upfront capital equivalent to £30,000—and a scarcity of trained specialists. Logistical setbacks, such as a British dock strike that postponed equipment delivery, further tested the fledgling venture, yet these constraints reinforced the viability of Datacom's bureau model for democratizing access to . Internal reorganizations paved the way for the formation of the Datacom Group Holding Company, consolidating operations under a unified structure to support nationwide expansion and enhanced IT capabilities. This precursor to future mergers solidified Datacom's role as a foundational player in New Zealand's burgeoning IT sector.

Domestic Consolidation and International Entry (–)

During the 1980s, Datacom, then known as Computer Bureau Limited (CBL), focused on strengthening its domestic operations in by adopting advanced technologies to meet rising IT demands from businesses. In 1983, CBL became the first company in to introduce technology, implementing it for the New Zealand Dairy Company (now ), which enabled more efficient data management for large-scale agricultural operations. This adoption positioned the company as a leader in relational database systems amid growing needs for computerized processing in sectors like and . In 1984, CBL rebranded to Datacom to reflect its evolving role beyond bureau services, with Paul Hargreaves appointed as to guide this transition. The late 1980s saw further domestic consolidation through strategic mergers that enhanced Datacom's service capabilities. In , Datacom merged with CCL, a fellow services firm, integrating processing and facilities management divisions to broaden its offerings in IT and support services. This merger stabilized ownership and expanded Datacom's workforce and expertise, allowing it to handle more complex contracts as New Zealand's IT sector grew with and increased computerization. By the early 1990s, Datacom secured its first major outsourcing agreement in 1991 with Telecom Directories (now ), underscoring its strengthened position in managed IT services domestically. Datacom's international expansion began in the , starting with to capitalize on regional opportunities. In 1992, the company opened its first contact center in , providing real-time and marking an initial foray into cross-border operations. This was followed in 1994 by the establishment of Datacom's inaugural Australian office in , facilitating fuller service delivery and growth in the Australasian market. Expansion into commenced in 1996 with the opening of an office in , , extending Datacom's footprint to support regional clients in and consulting. By the late , Datacom had exported facilities management and IT services to its Australian operations, culminating in the acquisition of its first data center in St Leonards, , around 1999, which bolstered local hosting and data processing capabilities.

Acquisitions and Infrastructure Expansion (2000s–2010s)

In the early 2000s, Datacom Group strengthened its Australian footprint through targeted acquisitions that enhanced its IT services and data centre offerings. In September 2004, the company acquired GlobalCenter, a Melbourne-based data centre provider, boosting its annual Australian revenues beyond $80 million. This was followed in 2005 by the purchase of the GlobalCenter building in for $7.15 million, adding a second data centre facility. This move was followed in 2005 by the acquisition of NetOptions, a Brisbane-based IT services firm, establishing operations in and contributing to total Australian revenues reaching $120 million while expanding service capabilities in and enterprise sectors. Infrastructure development accelerated in the late and , with Datacom opening multiple data centres to support growing demand for secure colocation and cloud-ready facilities. In 2007, it acquired a data centre from Hansen Professional Services, integrating the site and its team into its operations to serve as its third Australian facility. In , the Orbit data centre launched in in 2009, featuring capacity for over 1,100 racks and up to 10 MW of power to cater to enterprise-scale needs. Subsequent openings included the Gloucester data centre in in 2010, which set standards for infrastructure resilience, and the Kapua data centre in Hamilton in 2013, providing scalable storage solutions for regional clients. International expansion complemented these domestic builds, with Datacom entering the in 2009 to tap into opportunities. In 2013, Datacom sold its contact center operations in the and to . Operations extended to the in the , enabling service delivery across North American markets. In 2015, the company joined ' Managed Service Program as Australia's inaugural participant and one of only 20 globally, affirming its expertise in cloud management and migration services. A key financial milestone occurred in 2012 when the acquired a 35% stake from Post for NZ$142 million, injecting capital to fuel ongoing infrastructure investments. Leadership evolution underscored these growth phases, with Greg Davidson appointed as Group CEO in April 2018 after serving as CEO of Datacom's and businesses, marking a transition from Jonathan Ladd and emphasizing unified regional strategy.

Recent Milestones and Strategic Shifts ()

In response to the tragic of March 2019, Datacom established the Datacom Foundation in late 2019 to provide long-term educational support for affected families, with ongoing activities throughout the focusing on scholarships, programs, and partnerships to foster and opportunity. A key milestone in 2022 was Datacom securing major contracts with , including a $119.3 million multi-year deal in July for managed network services to replace incumbent and deliver a high-speed , followed by a $174.9 million in September for managed and IT service desk services through August 2027. In 2023, the company relocated its office to the Asteron Life Building at 55 Featherston Street, enhancing with modern facilities featuring harbor views, collaborative spaces, and sound-proof meeting areas to support hybrid work models. Beginning in 2023–2024, Datacom intensified its focus on (AI) deployments, integrating AI solutions for clients in areas like data analytics and while investing in upskilling programs to prepare employees for AI-driven roles, as evidenced by internal initiatives and the release of annual State of AI Index reports tracking adoption trends. This strategic shift aligned with financial recovery in FY24 (ended March 2024), where profit before tax rose to NZ$41 million from NZ$8 million the prior year, despite a slight decline to NZ$1.47 billion, driven by cost optimizations and Australian market growth. In FY25 (ended March 2025), Datacom achieved revenue growth to NZ$1.48 billion and net profit after tax of NZ$37 million, up from NZ$34 million, amid a challenging ICT market, with the company announcing an AI-led growth strategy in July 2025 emphasizing expanded GPU , ethical AI , and scaled deployments to capitalize on rising demand.

Business Operations

Core Services

Datacom Group's core services have evolved significantly since its founding in 1965 as a bureau in , , initially focusing on outsourced for businesses lacking in-house capabilities. Over the decades, the company expanded from basic and in the 1960s and 1970s to comprehensive management by the 1980s, incorporating network support and early cybersecurity measures as digital threats emerged. By the 2000s, Datacom integrated cloud technologies and development, transitioning to AI-driven solutions in the 2020s to address and needs. This progression reflects a shift from reactive data handling to proactive, strategic digital enablement, positioning Datacom as a key provider of end-to-end IT services across and beyond. Managed services form a cornerstone of Datacom's offerings, encompassing IT infrastructure management, cybersecurity, and network support to ensure operational reliability for enterprises. These services include 24/7 service desk support, onsite field services for hardware repairs, and holistic asset lifecycle management that covers procurement, deployment, and sustainable disposal of IT assets like servers and devices. Cybersecurity components feature proactive threat detection, compliance advisory, and zero-trust architectures to protect against evolving risks, with integrations like AI-powered operations (AIOps) for real-time monitoring and anomaly resolution. Network support extends to designing and maintaining hybrid environments, optimizing performance for distributed workforces while minimizing downtime. In consulting, Datacom provides advisory expertise in , AI integration, and cloud migration strategies, drawing on over 60 years of regional experience to tailor solutions for complex organizational needs. Services emphasize strategic roadmapping, from assessing legacy systems for modernization to implementing AI for workflow optimization and . Partnerships with global leaders enable specialized guidance, such as generative AI adoption frameworks that prioritize ethical deployment and ROI measurement, helping clients navigate regulatory landscapes like data privacy in . Datacom's cloud and data center services focus on secure hosting, AWS partnerships, and data sovereignty solutions to support mission-critical workloads. As an AWS Premier Consulting Partner—the only one in New Zealand—Datacom facilitates seamless migrations to public cloud environments, leveraging AWS tools for scalability and cost optimization while ensuring compliance with local sovereignty requirements through hybrid and private cloud setups. In September 2025, AWS launched the Asia Pacific (New Zealand) Region, enabling Datacom to provide even lower-latency, sovereign cloud solutions for its clients. Data centers provide colocation, managed hosting, and high-availability infrastructure, incorporating edge computing for low-latency applications and sustainable designs to reduce energy consumption. A private AI platform further enhances these offerings by providing GPU-accelerated environments for model training without exposing sensitive data to public clouds. Software development services at Datacom include custom application building and specialized products like Datacom Payroll, which automates HR and financial processes for enterprises. These offerings cover (ERP) implementations, (CRM) platforms, and bespoke digital solutions that integrate with existing systems for enhanced collaboration and accessibility. Datapay, a flagship system, handles complex compliance and reporting, recently augmented with AI for query resolution and error reduction. Development emphasizes agile methodologies, security-by-design, and to support growth in sectors like retail and government. Emerging areas center on AI solutions for business automation and analytics, with notable 2025 deployments including the Enterprise AI Assistant, launched in late 2024 and rolled out widely for secure, organization-specific generative AI use. This tool, developed in-house, processes internal data to generate insights and automate tasks while maintaining privacy through controlled environments. Additional AI initiatives encompass application modernization via autonomous engineering teams that refactor legacy code, AIOps for IT efficiency, and analytics platforms that democratize data access for non-technical users, driving productivity gains across operations. These advancements build on Datacom's historical expertise, evolving data processing roots into intelligent systems that deliver actionable business value.

Global Presence and Facilities

Datacom maintains a robust international footprint primarily in the region, with operations centered in and as its core markets, alongside facilities in , the , and . As of 2025, the company operates 26 locations across these regions, including key hubs in , , and , which serve as central points for strategic decision-making, client engagement, and service delivery. These offices support a diverse client base spanning , enterprise, and organizations, enabling localized expertise while leveraging global scale. The company's data center network forms a critical component of its infrastructure, providing secure colocation and managed services across New Zealand and Australia. Facilities include four primary data centers in New Zealand—Auckland (opened in 2009), Christchurch (established in 2010), Hamilton (launched in 2013), and Wellington—along with sites in Sydney (acquired in 2007) and Melbourne. These centers meet international standards for security and resilience, supporting cloud and hybrid environments, with recent investments emphasizing AI integration and enhanced cloud capabilities to address growing demand for scalable computing. In 2019, Datacom completed a $52 million upgrade across its New Zealand facilities to bolster capacity and efficiency. Regionally, represents a major growth area, driven by significant contracts that contributed to increases in 2025, including multi-year deals with agencies. In , operations in and the focus on , providing cost-effective support for contact centers and IT services to clients across the broader network. Employee distribution reflects this emphasis, with the majority of Datacom's 5,375 full-time equivalents (as of March 2025) based in and —approximately 2,433 (as of March 2025) in alone, with indications of subsequent growth—facilitating seamless global client support.;

Leadership and Governance

Executive Leadership

Greg Davidson has served as Group of Datacom Group since 2018, having previously led the company's operations for nine years. Under his leadership, Datacom has emphasized strategic partnerships and technological adaptation, including the company's entry into the Managed Service Provider program in 2015 during his tenure as CEO. Davidson oversaw the firm's post-2020 recovery, marked by a return to profitability in fiscal year 2021 amid a services boom and sustained growth through 2025, with revenue reaching NZ$1.48 billion. In recent years, he has directed the company's AI , driving initiatives that positioned Datacom as a key player in AI adoption, with 88% of surveyed organizations reporting positive operational impacts from AI in the 2025 State of AI Index. The executive team supports Davidson in steering Datacom's operations across regions and functions. Phil Neutze serves as Group Chief Financial Officer, focusing on financial strategy and cost management to underpin growth. For technology innovation, leadership falls under specialized roles such as Collin Penman as Group , who addresses cybersecurity in AI and integrations. Regional oversight includes Peter Nelson as Managing Director for , who assumed the role in October 2025, and Laura Malcolm as Managing Director for , driving expansion in the larger market. Since Davidson's appointment, there have been no major executive changes at the group level, with a emphasis on internal promotions to maintain continuity. This stability has enabled consistent execution of long-term strategies, including the 2024 IT roadmap that prioritizes employee productivity and skill enhancement. Datacom's executives have mandated diversity and upskilling programs, particularly in AI, with the Datacom providing hands-on training to empower growth and address skills gaps identified in the 2025 State of AI Index, where 28% of organizations plan AI-specific training. These efforts include recognition of female talent, with four team members named as 2024 Women in ICT Awards finalists, fostering inclusive innovation under executive guidance.

Board and Ownership Structure

Datacom Group's provides strategic oversight for the , comprising a mix of independent directors and representatives from its major shareholders. Tony Carter has served as chairman since April 2020, following his appointment to the board in August 2019, guiding the company's long-term strategic direction amid its growth in IT services across . The board includes eight members: Chairman Tony Carter; Simon Holdsworth and Merrill Holdsworth, representing Evander Management, the Holdsworth family investment vehicle; Hishaam Mirza, associated with the ; and independent directors Julie Fahey (Chair of the Risk and Contracts Committee), Chris Day (Chair of the ), Robin Keall, and Kathleen Bailey-Lord (Chair of the People and Remuneration Committee). This composition ensures a balance of shareholder interests and external expertise in , , and sectors. As a private board, Datacom emphasizes long-term growth, with a focus on strategic investments in and initiatives to support sustainable expansion. is dominated by Management with 54.92% control, providing majority influence on decision-making, while the Superannuation Fund's 45.08% stake offers stable, long-term funding aligned with ethical investment principles. Key board-approved decisions include the 2023 relocation of Datacom's offices to 55 Featherston Street, enhancing operational efficiency and employee collaboration spaces. In 2025, the board endorsed a heightened focus on AI integration across operations and client solutions, embedding AI to drive innovation and productivity gains.

Financial Performance

Datacom Group's revenue has demonstrated stability over recent fiscal years, hovering around $1.5 billion despite broader challenges in the ICT services sector. In FY23, ending March 31, 2023, the company reported revenue of $1.49 billion, reflecting a 2.8% increase from $1.45 billion in FY22, driven by growth in SaaS and cloud transformation services. However, profit before tax fell to $8 million from $41 million the prior year, primarily due to substantial investments in strategic areas such as product development and infrastructure expansion. The subsequent FY24, ending March 31, 2024, saw a modest decline to NZ$1.47 billion, a 1% decrease year-over-year, amid economic uncertainty in that curtailed customer spending on projects. Profitability rebounded significantly, with profit before tax rising to NZ$41 million, supported by strong performance in through major contracts and renewed market confidence. EBITDA also progressed to NZ$152 million, marking an 11% growth from the previous period, underscoring operational efficiencies despite the revenue dip. This volatility in profits highlights the impact of ongoing investments, balanced against regional dynamics where Australian expansion offset 's slowdown. In FY25, ending March 31, 2025, edged up slightly to NZ$1.48 billion, maintaining steadiness in a challenging ICT marketplace characterized by reduced spending in due to economic pressures. Net profit after tax improved to NZ$37 million from NZ$34 million in FY24, reflecting continued focus on cost management and AI-driven efficiencies, though EBITDA dipped to NZ$147 million. Overall trends indicate resilient amid sector headwinds, with profit fluctuations tied to strategic investments, and Australian growth—fueled by contracts in networks and AI—continuing to counterbalance 's constraints.
Fiscal YearRevenue (NZ$ billion)Profit Before Tax (NZ$ million)Net Profit After Tax (NZ$ million)EBITDA (NZ$ million)
FY231.498N/AN/A
FY241.474134152
FY251.48N/A37147

Key Investments and Growth Drivers

In 2024 (ended March 31, 2024), Datacom Group allocated $91 million in capital expenditures primarily toward expanding data centers and enhancing AI infrastructure to support growing computational demands. These investments bolstered the company's four New Zealand-based data centers, which operate on , positioning Datacom to handle the surge in AI-related workloads. Key growth drivers include strategic public sector contracts, such as the five-year agreement valued at A$174.9 million secured in 2022 with Transport for for end-to-end workplace services, including service desk management, end-user support, and workplace environment management. Additionally, Datacom's longstanding partnership with (AWS), established in 2013 and elevated to AWS Managed Services Partner status in 2015, has driven cloud migration and modernization efforts, with expansions in 2025 incorporating generative AI tools to accelerate customer transitions. Datacom's AI investments from 2024 to 2025 emphasize workforce upskilling programs and practical deployments, including over 20 AI pilots and proof-of-concepts integrated into operations like and cybersecurity, aimed at generating future revenue through enhanced and customer solutions. These initiatives, such as AI-powered application modernization that automates up to 70% of code generation, support scalability and position AI as a core revenue driver. The company's strong operating cash flow of $139 million in FY24 provided the financial foundation for these expansions, enabling sustained investment amid low debt levels. Market factors fueling growth include robust demand for ICT services in , particularly in public sector infrastructure, alongside increasing adoption of sustainability technologies like renewable-powered data centers to meet net-zero goals by 2030. However, FY25 results highlighted risks from market toughness, with challenging conditions in leading to paused projects and reduced customer spending, though Australian operations offset these pressures.

Social Responsibility

Philanthropic Initiatives

The Datacom Foundation was established in 2019 in response to the , with the aim of providing long-term support to affected families in . Named Iqra Salam Te Aroha—meaning "read/learn" in , "peace" in , and "love" in Māori—the foundation focuses on aiding children who lost parents or whose parents were injured in the attacks, offering financial assistance for tertiary education, vocational training, and rehabilitation services. Key programs include educational scholarships that, as of 2022, had distributed $90,000 to 15 students pursuing fields such as , , and , as well as initiatives for STEM education through partnerships like the First Foundation, which supports first-in-family university graduates. In mental health, the foundation funds counseling and innovative tools like the "Charlie" AI assistant, which connects to resources, while relief efforts involve employee-led for flood and fire recovery in and . These programs primarily operate in , with broader company-supported STEM education initiatives extending to through collaborations with institutions such as TAFE, RMIT, and UNSW. Funding for the foundation combines corporate contributions with , including a matching program where Datacom doubled individual efforts—for example, in 2022, $2,420 was matched for a initiative raising over $13,000 total. Additional support came from partners like the Foodstuffs (South Island) Community Trust, which provided nearly $40,000 for educational grants in 2022. The foundation's impact includes direct aid to families of the Christchurch victims, fostering through decades-long educational opportunities and broader community projects that address recovery from disasters. This philanthropic work integrates with Datacom's business operations by tying into employee and innovation challenges like Datacomp, which encourage staff participation in causes aligned with corporate values of community support and inclusivity. The foundation continues to support affected families as of 2025, though updated totals for scholarships and funding are not publicly detailed.

Sustainability and Community Engagement

Datacom Group has prioritized environmental through targeted initiatives focused on its operations and overall reduction. The company powers its with , sourced from hydro, , and geothermal via a long-term agreement with established in 2023. This aligns with 's national objectives, as evidenced by Datacom's achievement of Toitū Envirocare carbonreduce certification for three consecutive years as of 2025. Energy efficiency measures include and cooling technologies in facilities across , Hamilton, , and , contributing to a 16% year-on-year reduction in carbon emissions as of 2024 and a cumulative 34% drop since the 2020 baseline. Market-based emissions have decreased by 49%, while location-based emissions have fallen 35% from the same baseline as of 2024, supported by annual ISO 14064-1:2018 compliant audits. In , Datacom supports STEM through partnerships that foster skills development among underrepresented groups. Notable efforts include a three-year program with TupuToa for and Pacific youth, hosting Kura Kaupapa Māori students with , and sponsoring the TechWomen NZ ShadowTech24 initiative for 13 female participants in 2024. The company also provides scholarships, such as one awarded to a second-year student at , and facilitates work experience via First Foundation for secondary students. Diversity hiring initiatives emphasize equity in technology, including collaborations like the 2023 partnership with Yoobee to offer scholarships and for women entering the IT sector. Additionally, Datacom has conducted AI ethics workshops and roundtables, such as interactive sessions with leaders in and in 2024, to discuss ethical AI deployment and community impacts. These programs extend to broader training via TalentX and Connect , targeting early-career talent from diverse backgrounds. Engagement metrics highlight Datacom's commitment, with 38% of employees certified in training fundamentals as of 2024 to support internal practices. Employee includes doubled participation in the ThinkUKnow program since its , alongside annual targets for contributions. The company partners with over 117 councils across , including an exclusive with Taituarā formed in 2024 to enhance services through digital solutions like Datascape in . Strategically, Datacom integrates sustainability into its AI and services, developing renewable-powered data centers optimized for AI workloads to address energy demands while maintaining net-zero alignment. This includes "AI at the edge" solutions that reduce computational overhead and emissions, enabling green technology adoption for clients in migration and . Looking ahead, Datacom remains committed to achieving net carbon zero by 2030, with ongoing investments in hybrid electric vehicles, waste reduction via IoT technologies, and expanded renewable infrastructure to scale sustainable operations across its global footprint.

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