22nd January 2024, Kathmandu
Green Light for Nepal’s IT Sector: Government Delivers, But Are We Ready to Execute?” First of all, Thank you Hon. Prime Minister K.P. Oli for inviting me to participate in the “IT-Meet” discussion today at your residence. Here is more input from my side.
Nepal’s IT Ordinance 2025
“The recent IT ordinance enacted by the Nepal government is indeed a milestone for Nepal’s IT industry in its quest for aspirations in the global market. This long-awaited move will address some very important concerns raised by the private sector since the beginning. Indeed, with this roadblock taken away, there opens up a landscape of opportunities that the Nepalese software industry can undertake to establish itself as a competitive partner in the global market. This moment needs to be well utilized by taking up the following critical challenges:
1. Building Client Trust and Market Positioning
How can Nepal’s IT industry establish credibility and gain trust from international clients? Should we continue to position ourselves as a low-cost outsourcing destination, or should we aim to become premium service providers renowned for delivering exceptional quality and innovation?
2. Developing a Skilled Talent Pool
The growth of the industry depends on whether Nepal has adequate skilled professionals, comprising software developers, business analysts, DevOps engineers, and DevSecOps specialists. Are there adequate companies with the capacity to build and sustain teams that meet international standards in expertise and delivery?
3. Ensuring Competitive Compensation
The global competition for IT talent poses a significant challenge. Can Nepali IT companies offer competitive salaries and benefits to retain top-tier professionals, or will we continue to see an outflow of talent to international markets?
4. Enhancing Quality Standards
My experience with locally developed software uncovers significant quality gaps at various stages of the software development lifecycle. Addressing these gaps is critical if Nepal’s IT sector is to deliver world-class products and services.
5. Overcoming Project Valuation Challenges
The prevalent practice of limiting project budgets to under NPR 5–10 lakh to bypass the public procurement process is concerning. Such constraints often result in mediocre deliverables, making it difficult to meet quality expectations for complex applications. This issue threatens the industry’s reputation for professionalism and quality.
6. Building a Strong Portfolio and Proven Track Record
Nepal’s limited presence in the global IT market underscores the need to showcase flagship applications and successful projects. How can we create a compelling portfolio to demonstrate our capabilities and attract international clients and partners?
7. Addressing Cloud Infrastructure Gaps
Nepal currently lacks a local cloud service provider comparable to AWS, Google Cloud, or Microsoft Azure. Instead, the market relies heavily on selling individual virtual machines (VMs), which fall short of providing comprehensive cloud solutions. Without affordable and reliable local cloud services, startups and small businesses are forced to depend on international providers, such as AWS, which many cannot afford. Developing a local, cost-effective cloud infrastructure is crucial to fostering innovation and reducing dependency on external platforms.
The Way Forward
To unlock the full potential of Nepal’s IT industry, a strategic approach addressing foundational issues is essential:
1. Lowering Entry Barriers in IT Procurement
Simplifying entry barriers for local IT services and reducing reliance on external expertise in domestic IT procurement is critical. By prioritizing local service providers, we can facilitate knowledge transfer and foster the development of a self-reliant IT ecosystem.
2. Expanding Broadband and Mobile Data Accessibility
Extending fixed-broadband coverage and ensuring blanket mobile data services at affordable costs is imperative. This will not only make IT services accessible to remote and underserved areas but also enable low-income households to benefit from digital opportunities, fostering inclusivity in the tech ecosystem.
3. Advancing IT Education and Retaining Talent
Our Universities, Tribhuvan University (TU) and Kathmandu University (KU) must collaborate with the private sector to expand IT campuses and update curricula to include the latest advancements in technology. By providing cutting-edge education locally, we may retain more students within Nepal and reduce the outflow of talent seeking advanced courses abroad.
4. Developing Pokhara as a Digital Nomad Hub and Open IT Park
Nepal has the potential to attract foreign remote workers by transforming cities like Pokhara into digital nomad-friendly hubs or comprehensive open IT parks. Rather than limiting the concept of IT parks to enclosed spaces, Pokhara could be developed as a region with robust IT infrastructure, co-working spaces, affordable living options, and reliable internet connectivity. The city’s natural beauty, relaxed atmosphere, and innovation potential make it an ideal location to host foreign professionals and remote workers, fostering global collaboration and boosting the local economy.
By addressing these structural challenges and leveraging Nepal’s unique strengths, we can create an environment conducive to the growth of a competitive, inclusive, and self-sufficient IT industry capable of thriving in the global market.
Author: Nepal’s IT Ordinance 2025
