--By Suraksha Adhikari 

 

The software market in Nepal is experiencing steady growth. Experts and professionals involved in this business are taking this growth as a positive aspect of developing awareness related to information technology in the country.

 

Supporting the growth, Computer’s Association Nepal organised Subisu CAN Softech 2013 with the aim to showcase new technologies developed in the field of software, services, solutions and services and create environment to develop policies significant to promote information and communication technology in Nepal.

 

As per  CAN the overall trade of software has increased in the domestic market. Amrit Kumar Pant, General Secretary of CAN, said, the market and activities related to this business have been increasing as the people have been using software and application as necessity while it was used in the form of luxury till some years ago.

 

“The trend of using computers is also on the rise since schools, health institutions, clubs and other social groups in far flung areas of the country have started using computers for day-to-day activities, Pant said, adding that the volume of overall ICT products will double in the next few years.

 

CAN is working toward developing Nepal as a digital hub, particularly in software development, said Pant pointing out various international level software are being developed in Nepal. “Some years ago, people used desktop based software but now the people have switched to mobile based, android updating system which shows growing awareness of people towards technology,” he added.

 

According to Bishwo Ram Balami, third vice president of CAN, Nepal is independent enough to produce adequate number of domestic software which is being used in cooperatives, medical establishments, small scale industries, shopping malls etc but other software like billing software, banking software are imported from other countries.

 

Current Business

The growing market of software business has not been only fulfilling desires of youths and the IT enthusiasts; it also has been boosting up the economy of the country. According to Narayan Neupane, second vice president of CAN, the annual transaction of 30 local companies dealing with Management Information System (MIS) is around Rs 1.5 billion. Similarly, the financial sectors and Enterprises Resource Planning (ERP) software companies are doing transaction of around Rs 4 billion per year. The operating system including Windows, Linux, Mac are annually transacting around Rs 30 million–Rs 35 million. The use of genuine and branded anti-virus software is on the rise and the trade volume of anti-virus software is around Rs 2 million.

 

A study carried out by Central Bureau of Statistics, Government of Nepal recently showed that the computer penetration in Nepal is around 3 per cent among which 20 per cent uses internet. With the rise of mobile applications, the internet users in mobile has reached up to 67 per cent.

 

A raw data recently showed that there are around 300 software companies in Kathmandu valley.

 

Increment in Outsourcing Activities

Back at the turn of the century, outsourcing was not much of a global phenomenon as it is today, and businesses and governments alike were skeptic of transferring bulk of their IT works to the other side of the world. Outsourcing has now flattened the world to a large extent, and is playing a pivotal role in bridging the digital as well as economic divide among the developed and the developing countries.

 

There is not a specific data on the outsourcing activities of Nepal but it has been definitely increasing as almost 2,500 graduates are being produced from BIT, BIM schools. The manpower has been increasing speedily and as the country is not being able to provide the employment opportunities to those students and they have searched alternative ways to utilize their capabilities. “Outsourcing is a common phenomenon in Nepal at present and they are working for the companies of Australia, America, Japan and other western countries,” said Balami.

 

Pant said that the outsourcing activities have been providing employment opportunities to around 200-2500 people in the country but actual data has not yet come because most of the people are doing it on the basis of their own personal contact.

 

Problems and Challenges

Brain drain of the human resources has became a concern in the country. Khem Raj Bhattarai, Founder of KRB Software Pvt Ltd said that the skilled manpower are outsourcing to other countries which is a great loss to the nation. “We should bring Nepali ICT professionals, who are working abroad, to our  country with capital and technology,” he said.

 

According to the experts of this sector, lack of awareness in the people about running registered software companies have created problems. “Many developers were running the business illegally, which was discouraging the registered companies and eventually promoting unhealthy competition in the market,” they stressed.

 

There is lack of awareness in the people about the importance of ICT business and its prospects in the country. Pirated software users are also increasing which has been a threat to the software business and awareness should be increased to disarm these sorts of activities.

 

Commenting on the amendment of the IT related Policy, one of the sources from Chief Investigation Bureau (CIB) said that government should come up with an updated provision to encourage the youngsters to engage in healthy business and increasing awareness about the disadvantages of pirated software to the county. They should be given a proper opportunities to showcase their abilities.

 

Prospects of software business

The IT sector are experiencing remarkable growth in the Nepali market. The CAN Softech have brought the IT professionals and IT enthusiasts under one roof to discuss new prospects in this sector. Such activities not only act as a hub for these peoples but also encourage them to do something innovative and remarkable in this field. Some of the IT experts feels that Nepal government should prepare special policy for implementing the original software in order to discourage the pirated software. Government sector should support the IT sector in identifying areas to brings revenue in the country.

 

Way ahead

In this converging era, people look for a one door solution to their problems as they want one application, which can perform multiple tasks. So, if Nepal is to gear towards introducing itself as ICT-based country, it should focus itself in developing a clean environment where information and technology can flourish in a holistic way.