IT Industry In Nepal is Escalating: Scenario of IT in Nepal

IT Industry In Nepal is Escalating

Recently, Nepal is experiencing immense growth in Information Technology. For developing countries like Nepal, it gives a great opportunity for the country to make economic growth by attracting investments.

Previously, the IT industry in Nepal flourished in only Kathmandu, the capital of the country. However, as the industry is quickly making its way to different parts of the country, there is an exciting increase in the number of IT companies outside the cities of Kathmandu valley too. Inspired by the success of the old IT companies, many new startups are making their way towards the IT industry in Nepal, most of them being dependent on foreign outsourcing jobs. 

The world knows how important Information technology is for any organization today. Whether it is a product-based industry or a service-based industry, IT has made itself a key part of both as data and information management is crucial.

 As we browse the whole nation, we will find hundreds of Nepal IT companies. However, there are few which have established themselves as the top IT Companies in Nepal with their outstanding service. 

Here is the list of Nepal IT companies that have won the hearts of people through their service:

  • Deerwalk Inc
  • Verisk Nepal
  • Log point Nepal
  • Leapfrog Technology Inc
  • Dzango Technologies Limited

The entrepreneur alone cannot make a difference in the development of the IT sector of the country,   the government also plays a vital role.

To keep IT on Top Industries in Nepal List, it should ensure a noticeable impact on the socioeconomic growth of the country. The development of nationally impactful cultural policy plays a big part here.

Why is the IT Industry in Nepal Growing Rapidly?

The world is on the verge of turning full digital and the impact is seen in Nepal too. Of Course, it is good news. It not only upgrades the way of life of people but also increases the opportunities for skilled and talented manpower. There is big potential in increasing the export as the IT industry looks to establish itself as one of the growing industries in Nepal. So, why is the IT industry growing at such a fast-paced speed? The obvious reason is the growing demand for Information Technology relevant services and products. 

Skilled manpower or human resources is a must for growing IT companies and Nepal has the ability to meet the demand. Yearly, hundreds of IT students graduate as a result IT companies never sort talented and skilled people. As entrepreneurs are confident in the success of growing business in Nepal, many national, as well as multinational companies are setting up their businesses here. The software and applications developed in the country are not only consumed locally, but are consumed on the international market too. With this, Nepal is transforming its image as a contributor to Information Technology on a global scale. 

The government of Nepal has also been very supportive of the IT industry as they are making considerable efforts in creating a favorable environment for attracting foreign investments. Nepal government introduced the policy for direct foreign investment in the services related to IT providing permission for 100 % FDI. It motivated foreign investors. 

Current Scenario of IT industry in Nepal

The growth of the IT sector in Nepal is seen as we study its impact on the economic sector of the nation. The Information Technology and Communication sector contribute 2.3 % of the GDP of the country. This is not bad for a country that has taken the first step toward the technological world not long ago. The current scenario of the IT industry in Nepal is really impressive.

The trends in Information technology keep changing worldwide and Nepal is not untouched by it. So, what is happening in the IT industry in the country that contributed to the booming of the sector? We have listed the current trends in the industry to spark light on the current scenario of the IT industry in Nepal. 

Online sales

There is a big rise in e-commerce in the current business market in Nepal. Daraz and Hamrobazar are some examples of businesses that flourished from e-commerce. Looking at the market today, it will not be wrong to say that online presence is what matters for the success of the business. 

Use of Internet

The Internet is easily accessible to most people in Nepal. Around 38 % of the total population of the country are connected to the internet in the year 2022. We see an increase in internet users by 7.7 % in 2022 compared to last year, Kepios reports. The different companies take it as a benefit to communicate with potential customers as digital marketing blossoms. 


Every year, there is an increase in the number of IT startups in the country providing services nationally and internationally. The report by FNCCI 2020 shows that many of the IT establishments in Nepal have already gained their place in the international niche market for selling their products and services. Today, many IT companies are based on outsourcing projects in Nepal. With reasonable service costs and high quality of work, IT companies are successful in attracting many international clients. 

The shift in IT career

Previously, most of the IT professionals in Nepal were from the fields of Software development, web development, and app development. As technology is emerging, there is increasing demand for cybersecurity personnel. It led to an attraction to cybersecurity courses and the traditional trend of IT courses in Nepal has shifted to modern IT courses. Softwarica College is amongst the top colleges in Nepal that offer modern IT courses. BSc Hons computing and BSc Hons Ethical Hacking and Cyber Security course by Softwarica College ensure the student that they go hand in hand with the latest trends in the IT sector.

The current trends show that the IT sector is expanding for good. So, what’s the future of the IT industry in Nepal? Well, there is a big hope for positivity. However, the changes in government policies also play an important role in its development. Read on to find out more about the current role of government policies in the IT industry. 

Role of Government Policies in the IT Industry

Before going through the role of government policies in the IT industry in Nepal, let’s understand IT policy. So, what is IT policy? IT policy is a set of rules or laws defined to provide guidelines for using IT resources in the country. IT policy in Nepal is introduced to ensure the safe use of Information Technology in the country. It also describes the condition for which access to technology resources is permitted or denied.  

IT policy of Nepal 2072 introduced its mission to create an environment for the growth and development of IT as an important factor for sustainable development and poverty reduction. So, IT policy and development in Nepal toward the digital world are interconnected. The policy ensures efficient and reliable IT infrastructure for the smooth running of national and multinational companies. Also, it is the role of the government policy to provide favorable conditions for cooperation among all the private and public stakeholders on a national and international level.  Moreover, policies like offering discounts on tax on the import of hardware and software, providing free training on IT, etc. are always beneficial for the development of the IT sector in the country.  

A knowledge-based society and industries are only possible when IT policy in Nepal ensures that Information Technology is easily accessible to the general public and private companies in the country. Without a clear roadmap, there is no direction for any sector to grow. The “Digital Nepal Framework” introduced by the Nepal government has provided roadmaps for international companies for investing in the IT sector. We can see a big jump in foreign investments after its introduction. Besides, the framework also clarifies the rule that the private, as well as government companies, have to match up with to perform their operation in the IT sector of Nepal. 

Outsourcing and Freelancing IT projects in Nepal

According to the report by Computer Association Nepal, there is an increase in job demands in IT fields by 15 % to 20 % each year. The country has been seeing a significant increase in outsourcing and freelancing IT projects as the country has a large pool of skillful manpower. However, it is not the only reason for Nepal to be in demand for outsourcing IT projects. The key reason for many international clients looking for services from Nepal is that the labor cost in Nepal is comparatively lower than in others. The new software developers work for $10 to $ 15 per hour here in Nepal, whereas the developers from outsourcing countries like China and India work for $ 30 to $ 15 respectively.

Thanks to the clear policy of the Nepal government and easy access to freelancing platforms such as Upwork, Toptal, and Fiverr, there are plenty of job opportunities for people with excellent IT project ideas. The majority of the IT projects in Nepal are based on mobile application development, website development, Artificial Intelligence Research, and Digital Marketing.


The IT industry in Nepal still has a long way to go as it is still far away from the top list of nations in the Technology sector, however, there is a big future ahead. Hopefully, Nepal’s IT companies will guide the country to the spot amongst the top nations in the IT industry.

Leave a Reply

Your email address will not be published. Required fields are marked *