Kinetics Group expands IT services with OutSource merger
OutSource IT has joined the Kinetics Group, expanding the combined company's capabilities and offering broader technical skills to clients.
As a result of this integration, which became effective as of April 2025, the new entity aims to achieve greater economies of scale, reduce costs of service delivery, and position itself to meet growing demand for managed IT solutions in the New Zealand market.
Andrew Hunt, Managing Director of Kinetics, stated, "This move aligns with our commitment to delivering client-focused IT services. OutSource IT's expertise and shared values strengthen our ability to provide tailored managed services. We're thrilled to welcome Philip Adamson and his team to the Kinetics Group."
Hunt explained that economic pressures have driven clients to seek greater efficiency and cost control in their IT operations. "This move helps keep costs down for clients, while expanding the services we offer. The IT footprint is much larger, going beyond the traditional space of supporting servers, PCs and mobiles, and extending to public/private cloud and cybersecurity. As a result, businesses need a more strategic approach to consistently achieve their productivity goals."
The managed services market in New Zealand is experiencing growth driven by increasing demand for IT outsourcing, cloud services, cybersecurity, and artificial intelligence. Businesses are placing greater value on access to specialist knowledge across areas such as licensing, configuration, and optimisation, according to observations referenced in the announcement.
Hunt said the merger makes Kinetics better equipped to deliver locally tailored IT solutions to clients handling these industry changes. "Our focus is accelerating how our customers adopt, use, and automate IT within secure and well governed frameworks. Combining two proven businesses creates the necessary depth across multiple disciplines while still delivering as a trusted and friendly organisation."
Kinetics has also introduced a workshop series focused on artificial intelligence (AI) tools, aiming to show clients practical uses for technologies like ChatGPT, Copilot, Midjourney, and Gemini. Hunt said, "There are opportunities to gain competitive advantages, and we're showing our clients how, with a focus on change management, user acceptance, and AI usage policy."
A 2024 IDC report highlighted that managed service providers (MSPs) with increased scale can draw on broader teams of specialists in areas such as cloud management, cybersecurity, and data analytics. This scale allows New Zealand businesses, including small and medium-sized enterprises (SMEs), access to enterprise-grade solutions at more accessible costs. Larger MSPs are also able to offer round-the-clock support and comprehensive disaster recovery planning, reducing the impact of downtime.
OutSource IT brings with it a team of engineers and the CloudSource service, a New Zealand-hosted data centre solution. CloudSource is designed for businesses running legacy software or requiring local cloud control, and is supported by engineers with direct knowledge of client systems. Kinetics' existing cloud and IT infrastructure services, combined with CloudSource, aim to address the growing need for secure, locally hosted data management amidst heightened concerns about data sovereignty.
Philip Adamson, former Managing Director of OutSource IT and now the Client Services Director at Kinetics Group, commented, "This move provides our clients and team access to greater resources while preserving the personalised service OutSource IT is known for."
The combination also enhances the group's capabilities with products such as Microsoft 365, SharePoint, Power BI, and Copilot, in response to the increasing adoption of these tools by New Zealand businesses. Kinetics will also be launching a new client portal in late 2025 to provide customers with real-time ticket tracking, system reporting, and access to knowledgebase resources.
OutSource IT employees have relocated to Kinetics' Newmarket office. There are no changes to client contact details or the existing service delivery model, with engineers and helpdesk staff continuing support for OutSource IT's existing clients through the transition.
Hunt said, "This move enhances our ability to address New Zealand's IT challenges, from cybersecurity to digital transformation. By combining our teams, we can deliver greater expertise and resources, helping clients leverage technology to achieve their goals in a dynamic market."
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