The participants stressed the need to attract investments to Nepal's burgeoning IT sector that can play a pivotal role in generating jobs and helping the country’s economy to grow.

Tech Peak Nepal 2024, an event dedicated to Nepal's IT services export industry, kicked off in Kathmandu on Thursday, bringing together more than 200 national and international experts, professionals and government officials in a single platform.

Participants at the event jointly organized by the Confederation of Nepalese Industries (CNI), NAS-IT, and the American Chamber of Commerce in Nepal (AmCham), stressed the need to attract investments to Nepal's burgeoning IT services export industry that can play a pivotal role in generating jobs and help the country’s economy to grow.

“In 2022, Nepal's export of IT services experienced an extraordinary surge, reaching a remarkable figure of USD 515.4 million,” said Rajesh Kumar Agrawal, President of CNI, adding, “This growth, particularly in software development and digital services through offshore outsourcing, highlights Nepal's emergence as a key player in the global IT arena.”

Nepal is emerging as a formidable contender on the global stage, buoyed by its youthful demographic and escalating proficiency in IT and the English language. Recent studies highlight the nation's strides in the Information Technology Enabling Services (ITES) domain, with export figures in this sector now eclipsing earnings from its traditional tourism industry. This shift underscores a significant yet underexploited potential within Nepal's economy.

Research conducted by the Institute for Integrated Development Studies (IIDS) has shown that IT service exports contributed USD 515.4 million to Nepal’s economy in 2022, thereby becoming Nepal's leading export.

Prof. Dr Shiva Raj Adhikari, a member of the National Planning Commission, and the chief guest of the event, said that the IT sector holds a vast export potential that could drive the growth and prosperity of the country. “To fully capitalize on this potential, we have to encourage investors to invest in this sector. It’s crucial to lay the foundation of Nepal’s digital arena. By investing in the IT sector, Nepal can bridge the digital gap,” he said.

During the event, Harish Mehta, co-founder and executive chairman of Onward Technologies Ltd and the first elected chairman of NASSCOM, India, shared his success story as the keynote speaker of the event. He is the author of the national bestseller 'The Maverick Effect,' and he talked about how the book recounts the early struggles that Mehta and others had to face to bring NASSCOM, the industry body of Indian IT, to life. Mehta was awarded the ‘CEO of the Year’ in 1994 by NMIMS, Tata HRD Network, and the World HRD Congress. He was also honored with a Lifetime Achievement Award by IMC Chamber of Commerce and Industry in 2018.

Similarly, Nirmal Kajee Shrestha, President of AmCham, said, “We have recognized the IT services export industry as a major sector and are focusing on it. We have three major sectors, we always have highlighted--IT, Hydro and Tourism. Among them, the most important sector for us is IT.”

He added, “Out of 50 members with AmCham, more than 30 percent are from the IT sector. Because of this, we have focused on IT.”

Likewise, Ajit Shah, Chair of the CNI IT Council, emphasized Nepal's possession of 8 of the world's highest peaks and called for collective efforts to elevate the tech and ITES sectors to become Nepal's 9th peak.

One of the key highlights of the event was the topic of forging a strong "Brand Nepal" and enabling Nepalese companies to thrive internationally, a unified approach necessary to navigate challenges such as limited global visibility, infrastructural deficiencies, and complex regulations.

The Government of Nepal is keen on nurturing a knowledge-based economy, launching the Digital Nepal Framework to foster socio-economic growth through private sector collaboration.

The IT and Business Process Outsourcing (BPO) sectors are earmarked as critical to the country's export strategy, with policies designed to attract foreign investment through offerings such as 100% ownership rights, tax holidays, and competitive corporate taxes. These measures aim to stimulate the emergence of high-tech startups and businesses.

Yet, despite the promising investment return prospects, both domestic and foreign direct investments (FDI) in this sector remain subdued. This hesitance is attributed to a lack of industry understanding and familiarity with Nepal's market dynamics, pointing to a significant area of opportunity for both local and international stakeholders.

The participants underscored the need to bridge the critical gaps between IT companies, policymakers, and educational institutions, fostering a collaborative environment that is essential for accelerating Nepal's socio-economic transformation.

The main sponsor for the event was USAID, with other major sponsors including The World Bank, the European Union, ECC, and the Asian Development Bank. Similarly, IMEpay, Neoteric, Marching Ants, Laxmi Sunrise Bank, NMB Ace Capital Limited, and NIBL Equity Partners are the sponsors from the private sector.