Nepal’s Information Technology service exports are steadily advancing, marked by a surge in software development and digital services facilitated by offshore outsourcing.
Recent statistics reveal that Nepal’s IT service export industry is now valued at approximately USD 515 million. This impressive figure is underpinned by a thriving ecosystem comprising 106 IT export service companies, alongside a substantial workforce of 14,728 IT freelancers specialising in software development and technology. Additionally, the sector boasts 51,781 IT-enabled Services (ITeS) freelancers actively engaged in exporting services via diverse digital platforms.
In the year 2022, the cumulative value of IT service exports hit the USD 515 million mark, signifying a remarkable growth rate of 64.2% compared to 2021. This exceptional performance underscores a highly promising upward trajectory, not only in terms of revenue but also in the investments made within the IT industry. Over the span of the three-year examination period, the revenue generated through IT service exports witnessed a noteworthy upswing, further substantiating the industry’s optimistic growth prospects.
Due to the formidable competition Nepali products face from Indian and Chinese counterparts in the global manufacturing arena, Nepal’s most promising avenue for competitiveness lies in the realm of weightless and borderless trade through IT service exports. This strategic shift has the potential to transform Nepal’s economic landscape, moving away from a heavy reliance on labour exports towards a more sustainable model centred on service exports.
Technological advancements have significantly broadened the scope of tradable services, offering Nepal a distinct advantage. Embracing this opportunity can lead to the creation of more domestic job opportunities, which, in turn, addresses the issue of youth “brain drain.”
