Institute for Integrated Development Studies (IIDS) recently published a comprehensive report about the status of the IT service export in Nepal. The report contains valuable data, facts, and figures about the Nepali IT industry engaged in the export of IT Services.
Here are the key points from the report:
- Nepal’s IT service export industry is valued at approximately USD 515 million, with over 106 IT export services companies and 66,509 freelancers engaged in exporting services.
- Total IT service exports reached USD 515 million in 2022, a 64.2% growth from the previous year. IT companies recorded 80.5% growth while freelancers saw 55.2% growth.
- IT exports accounted for 1.4% of Nepal’s GDP and 5.5% of foreign exchange reserves in 2022, highlighting the industry’s contributions.
- However, the sector faces challenges like inadequate infrastructure, limited policies, shortage of skilled talent, restricted payment systems, and insufficient branding.
To address these gaps, the report recommends focusing on 7 key areas:
- Infrastructure development – Improve electricity, internet, data services, and physical infrastructure.
- Investment and financial support – Provide funding for R&D, startups, and efficient payment systems.
- Human capital development – Implement programs for upskilling, IT education, and inclusive participation.
- Policies and regulations – Develop favorable policies tailored to the IT industry’s needs.
- Branding and promotion – Use campaigns and networks to promote Nepal’s IT capabilities globally.
- Coordination and collaboration – Facilitate public-private partnerships and industry coordination.
- Innovation – Support research, entrepreneurship, and emerging technologies.
With strategic efforts in these areas, Nepal can further grow its IT sector, boost exports, create jobs, and harness the digital economy’s potential. But addressing persistent challenges is vital for sustainable progress.
Here’s the link to the full report:
https://iids.org.np/images/publications/428a03a4a6d93ba42521c66c481933ea.pdf