Avanade expands in New Zealand on rising AI demand

Avanade is expanding its local capability in New Zealand as part of a broader Australia and New Zealand growth strategy.

The expansion is aimed at meeting rising demand for AI, cloud and digital transformation services in New Zealand. Avanade wants to help organisations move from early AI ambitions to implementation in day-to-day operations.

The move reflects a view that many businesses have already identified where AI could add value but still face practical barriers to wider deployment. In Avanade's view, the main challenge is execution in complex business environments rather than access to the technology itself.

New Zealand has become an increasingly active market for AI adoption, with large organisations and public sector bodies exploring how generative AI and related tools can improve productivity, customer service and internal processes. That is driving demand for consulting, systems integration and operational support tied to Microsoft software and cloud products.

Founded by Microsoft and Accenture, Avanade focuses much of its work on Microsoft technology. The New Zealand investment sits within wider regional efforts to support more organisations adopting and scaling Microsoft systems.

Jeyan Jeevaratnam, Interim Chief Executive Officer of Avanade ANZ, said the market was showing both strong interest and rising investment in digital tools.

"New Zealand is an incredibly innovative market with a strong appetite for AI. What we consistently see is that organisations know what they want to achieve with AI, but lack the capability to implement and scale it inside their business. The challenge is not access to AI, it is execution at scale inside complex, real-world environments," Jeevaratnam said.

He said the decision was also driven by demand from clients seeking local delivery support rather than advice alone.

"The decision to double down investments in the region and strengthen our presence in New Zealand reflects both the opportunity in the market and the demand we're seeing from organisations ready to accelerate their AI journey," he said.

Partner backing

Microsoft and Accenture both backed the move, highlighting the importance of local delivery teams as customers shift from small-scale trials to broader operational programmes. Their comments reflect a wider trend in the AI market, where spending is moving beyond experimentation toward integration with existing systems, governance processes and workforce practices.

Jane Livesey, President of Microsoft Australia & New Zealand, said local partners will be central as organisations try to turn early AI work into measurable business outcomes.

"New Zealand is a global leader in AI adoption, and the next chapter is about reinvention: new ways of working, new business models, and the confidence to act boldly and responsibly. Local partners are critical to turning promise into progress, and Avanade's decision to build in Aotearoa strengthens the ecosystem that helps organisations move from pilots to impact, faster. Together, we can help more Kiwi businesses and communities capture the productivity and growth opportunities of the AI era," Livesey said.

That focus on local execution was echoed by Accenture, which has a long-standing relationship with both companies. Avanade and Accenture often work together on transformation projects that combine strategic planning with implementation.

Justin Mowday, Country Managing Director at Accenture New Zealand, said the expansion would bring delivery resources closer to customers undertaking major technology change.

"This is a deliberate move to strengthen how we support clients in New Zealand by bringing delivery capability closer to where transformation is happening. Through Avanade's expansion and our partnership with Microsoft, we are reinforcing our ability to support complex, enterprise-wide change - not just advising on direction, but ensuring it is delivered and sustained. From Accenture's perspective, this reflects a long-term commitment to the New Zealand market and confidence in Avanade's role in helping clients execute at scale," Mowday said.

Execution focus

The language used by all three companies points to a practical issue facing many corporate AI programmes. While boardrooms may support the use of AI tools, organisations often struggle to connect those tools with legacy systems, data quality controls, security standards and internal operating models.

For providers such as Avanade, that gap creates an opening to sell implementation and managed services tied to Microsoft's expanding AI portfolio. In New Zealand, where the pool of specialist digital talent is smaller than in larger markets, on-the-ground support can also help win larger transformation contracts.

Avanade says it works with more than 7,000 organisations globally and employs 60,000 Microsoft professionals worldwide. Its New Zealand expansion signals confidence that demand for AI-related services in the country will continue to grow as businesses move beyond pilot projects and embed the technology more deeply in operations.