Nepal’s IT industry has been growing every year. This segment is fast growing and has benefited from the youthful and tech-savvy people in the country, with exports rising steadily.
The report from Institute for Integrated Development Studies (IIDS),reveals that the IT service export industry in Nepal is valued at approximately USD 515 million, with a significant increase of 64.2% since 2021. This growth underscores the success of Nepali companies in delivering high-quality IT services to international clients, resulting in a substantial influx of foreign exchange.
This report shows that Nepal has capability in various IT services. It is home to gifted software developers, web designers, and other IT specialists who work with foreign customers.
The youth are offering services like; software development, cloud computing, content creation, SEO, SEM, web development & design and many more.
In 2022, IT service exports accounted for 1.4% of Nepal’s GDP and 5.5% of the foreign exchange reserves, showcasing the sector’s vital role in contributing to the country’s economic development.
With 83.5% of freelancers falling within the age bracket of 20 to 29 years, Nepal’s IT sector is harnessing the energy and innovation of its youth. Encouraging youth-centric policies can further leverage this demographic dividend and drive socioeconomic and political rewards.
The report provides a roadmap for fostering the growth of Nepal’s IT sector and maximizing its economic contributions. Recommendations include infrastructure development, investment and financial support, human capital development, policies and regulations, branding and promotion of Nepal’s IT industry, coordination and collaboration, and innovation. By implementing these recommendations, Nepal can unlock the full potential of its IT sector and position itself as a key player in the global digital economy.
However, challenges remain. Nepal remains prone to the danger of “brain drain” since many IT professionals are attracted by better paying jobs from multinational companies. The ability to retain this talent pool will be critical to sustaining growth in the IT export segment.
Nepal’s IT sector has the potential to contribute significantly to the national economy with strategic interventions and youth-centric policies. Addressing challenges related to skills, infrastructure, policies, and collaboration among stakeholders is essential for sustained growth and competitiveness in the global digital economy.
Read full report: https://iids.org.np/images/publications/15c4487b777dcf3239cd6af6dd15c2c1.pdf
