Datacom – New Zealand’s largest homegrown technology services company – is celebrating a 60-year journey that began in 1965 with a single mainframe and has gone on to deliver transformational projects for hundreds of Kiwi organisations.
From its Christchurch roots, Datacom has grown into a $1.48 billion tech company, employing over 5300 people and serving many of Australasia’s largest public and private sector organisations. The milestone arrives just as Datacom is undergoing efforts to transform itself for the age of artificial intelligence, focused on ensuring the company – that has been referred to as New Zealand’s “original tech unicorn” – can retain its reputation as a trusted leader in tech for decades to come.
A legacy of enabling transformation
Datacom’s journey began when accountant Paul Hargreaves and Dr Bernard Battersby, then Dean of Commerce at the University of Canterbury, founded Computer Bureau Limited (CBL), soon after acquiring an ICL 1902 mainframe, one of the first in the country. CBL subsequently changed its name to Datacom.
When CCL, the tech company fully owned by John & Merrill Holdsworth merged with Datacom in 1988, the tone was set for a company that would consistently bring the latest technology to New Zealand businesses and government agencies. From pioneering COBOL payroll systems and introducing Oracle databases, to launching cloud payroll with Netpay and investing in state-of-the-art data centres, Datacom has often led the way.
Over the decades, Datacom has not only kept pace with global technology trends but often led the charge in local adoption. In the 1970s and 1980s, Datacom introduced cutting-edge COBOL payroll solutions and brought Oracle’s database technology to New Zealand, helping major enterprises like the NZ Dairy Company modernise their operations
In the 1990s, it was among the early adopters of large-scale IT outsourcing, signing significant contracts with Telecom Directories and absorbing NZ Post’s IT department. As the new millennium dawned, Datacom launched Netpay, one of the country’s first cloud payroll products, and rapidly expanded into Australia and Asia.
Since the 2010s, Datacom has opened state-of-the-art data centres in Auckland, Hamilton, Wellington and Christchurch, establishing itself as a core contributor to cloud infrastructure and supporting the digital ambitions of both public and private sector clients.
Datacom’s Kapua data centre in Hamilton – one of four Datacom data centres in New Zealand.
Building local solutions for local needs
Datacom’s roots are firmly planted in New Zealand soil. The company has always prioritised local investment in people and infrastructure, and has stepped up to develop tailored solutions for the local market, including its cloud-based payroll software Datapay and local government software suite Datascape, giving New Zealand companies an alternative to tweaking global solutions to fit.
That local focus has continued with Datacom recently announcing its Water Asset Intelligence (WAI) platform – building on its purpose-built software for local government – which provides a ‘ready to go’ pre-configured platform to support councils that opt to establish a Council-Controlled Organisation (CCO) for the planning and management of their water services to meet the requirements of the new Local Water Done Well policy.
Datacom’s presence in Australia has also grown substantially, with the company now a trusted partner to major government agencies and enterprises. Its teams on both sides of the Tasman work closely to deliver complex projects, particularly in areas such as infrastructure, networks, and application modernisation.
Embracing the AI revolution
As Datacom enters its seventh decade, it is once again positioning itself as a leader in a transformative wave predicted to be bigger than many that have come before: artificial intelligence. In the past year, the company has embedded AI deeply into its own operations and across its service offerings.
“AI is the single biggest and most significant technology shift that we’ve seen in decades,” says Greg Davidson, Datacom Group Chief Executive Officer, who has led the company for nearly two decades.
“Our teams have done an exceptional job of identifying use cases and building innovative solutions that are delivering tangible results while ensuring organisations have the right foundations and technology in place to support future ambitions”.
Datacom’s developers are now using AI agents to write up to 70% of code for modernisation projects, delivering cost savings of 30-50% and dramatically reducing project timelines. The company has rolled out AI-powered assistants, such as an AI assistant for its Datapay payroll solution, enabling consultants to quickly analyse legislative changes and answer complex queries using natural language prompts.
Datacom has mapped AI opportunities for government ministries, developed research assistants to help staff navigate legislative content, and built virtual assistants for the aged care sector, providing 24/7 access to government services.
Investing in the future
Datacom’s commitment to future-proofing both its own business and those of its clients matches its focus on innovation. The company recently completed a strategic transformation, streamlining operations and establishing four defined lines of business: Professional Services, Managed Operations, SaaS Products, and Infrastructure Products.
“The strategic transformation was ultimately designed to future-proof our business and ensure we are in the best possible position to support the changing needs of our customers, so the timing is perfect,” says Davidson.
With AI adoption accelerating, Datacom is investing heavily in infrastructure, including upgrades to its data centres and expanded graphics processing unit (GPU) processing capacity, to ensure customers have access to the computing power required for next-generation workloads. The company is also working to ensure the safe and ethical adoption of AI, with a focus on resilience, compliance, and building in-country capability.
While economic challenges remain on both sides of the Tasman, Datacom is profitable. It has increased sales and reduced debt in the past year. It has supportive and stable shareholders in the form of Evander Management, the investment company of the Holdsworth family, which took a major stake in Datacom in the late 1980s when John Holdsworth led the company, and the New Zealand Superannuation Fund.
As it marks its 60th anniversary, Datacom positions itself not as a legacy provider, but as a dynamic, future-focused company, one that continues to shape how New Zealand and Australia are embracing the next wave of technological innovation.
Learn more about Datacom’s story at www.datacom.com.
