Why is information technology development in Nepal?

Why is information technology development in Nepal?

It is not that it will take us another 30 years to make a leap forward because of technology. With the development of technology, Artificial Intelligence (AI), which has been receiving intense attention recently, Nepal can develop into a country with a large IT industry in the next 5 to 10 years. I see the possibility of surpassing Nepal's energy sector, we have that capacity.

Most technology companies in Nepal are small. They have less than 2,000 employees. Growth in the technology sector is in its very early stages. However, saying it is in its early stages does not mean that it has just started. Nepal had already made great progress in the information technology sector by the end of the 1990s.

At that time, we were doing very well in startups and software development. However, due to various reasons including energy crisis (load shedding), Maoist war, etc., all these works were stopped. We could not grow. Only a very few companies survived this. Due to which Nepal was not seen as a suitable destination for startups and software development. The government also could not create that environment. We could not protect human resources and resources. The private sector did not even dare to work.

That is why we are not at the beginning. It has been a long time since we started this business. That is why Nepali youth have also worked in top positions in big companies like Google, Facebook, Amazon and others. I myself have been active in the information technology sector of Nepal for 20 years. Even if we started the information technology industry of Nepal with 500 million US dollars, if we can grow, we should be ready to increase this figure threefold. We can achieve this goal in two to three years.

Before all these aspects, it is important to understand the impact that the IT sector will have on the economy. There is a matter of bringing foreign currency into the country. At one time, we were in a situation where foreign currency reserves were depleted and we had to stop imports. Now, as foreign currency reserves have increased significantly, I think the information technology sector has played a big role in that.

The source of IT is human resources

The information technology sector directly affects the community. The raw material or source of the IT sector is human resources. It can be prepared at minimal cost. For example, when talking about tourism, a hotel needs a lot of capital to build. After construction, a lot of capital is also needed for its management, marketing, and maintenance. However, when talking about IT companies, they can be prepared very quickly. The cost is also low. At the same time, the income generated from it goes directly to the economy.

The main expense of any IT company is the salary and allowances of the employees. 50-60 percent of the income of any IT company goes under the title of salary and allowances of the employees. The salary and allowances of the employees are ‘disposable income’. A tech career can be started at a very young age. At a young age, the idea of ​​building a house or buying land is not developed. His idea is to eat good food, have a memorable travel experience. As it happens, he spends on improving his lifestyle.

When he says that he wants to work in the IT sector, he might want to buy a better computer. He focuses on fast internet to ‘work from home’ as well as good clothes and riding a motorcycle. Therefore, 60 percent of what the employees earn goes directly to the economy. It helps to increase economic activity from vendors around the employee's residence to others. While there are widespread complaints that there is no demand in the market, the IT sector is playing a direct role in increasing it.

The information technology sector is one that is the same all over the world. There is one language. There is one method. We can produce that skill quickly in Nepal. Because we have enough young manpower. We can train about 500 people in one place. We can make them proficient in emerging technologies. If we are to train 30,000 manpower in AI, the resources of the world will come to Nepal.

Through this, we can contribute to the global economy and innovation. Even now, Nepal's IT companies are connected to the world's big technology companies. We are also working with American companies. Nepal is directly contributing to the innovation of those companies. If you have the skills, you can contribute to world-class companies wherever you live. If you have the skills, any person can work wherever you go. It is not so easy to reach any part of the world by learning skills so quickly in other fields.

Third, we have not yet explored innovation in Nepal. For innovation, we are Nepali companies, which have experience in working with world-renowned companies. Our developers can prepare themselves for new startups, ideas or innovations from there. Which contribute to the Nepalese economy. Not only that, but they can also export their products to the global economy.

The other is the issue of 'brain gain'. India and Bangladesh have also brought their human resources back home from Silicon Valley and other places to start innovation. The IT industry can drive towards the brain grain without fearing brain drain. This is very difficult to do in other areas.

What can the government do?

First of all, the state should focus on resources or human resources. The resources that Nepal needs to invest in have not come from the state, nor from the private sector or donor agencies. It is being lost every minute. The world is looking for human resources for AI. However, we also need human resources.

 We have not been able to prepare it. For this, the federal, provincial and local governments should work together. Also, not only the government, but all sectors should be involved in it. This is called the 'disruptive emerging' sector. This means that companies have access to large areas. Their centers are established.

However, some areas where companies do not have access are classified as disruptive emerging sectors. Separate programs or campaigns are run for those areas. If we are launching a product worldwide, there is a strategy in America, Australia, Britain or Europe, but a separate strategy is prepared for the emerging sector. A separate sales team is set up. Because the centers have human resources, but not in the emerging sector. Therefore, investments have to be made in those areas to increase sales. Therefore, in Nepal too, the state should look specifically at the information technology sector. This is not a common thing. It is not enough to just say that it will be done from the budget. Every ministry, every province, every local level should work together. Donor agencies should also be requested by the government to participate in the IT industry of Nepal. Similarly, schools and colleges should also be involved.

The government should define the IT industry as the sector with the highest potential and explain its importance at every level and stage. Not everyone will make their career in the information technology sector. But there should be exposure to information technology in school education. There should be a review and evaluation of how the local level is taking it forward. I have heard that a government school has one computer for 10 students. Only those who know how to use a computer a little bit use it. Knowledge and skills should be developed from this level. The local level should be more responsible for involving experts to increase quality from the school level and making the curriculum information technology-friendly. The participation of women in computer-related classes should be ensured. Because innovation comes from the local level.

In the case of the province, it should look at the reporting of all the local levels in its area. The more innovation is happening at the local level, the province should follow it. The province should increase it and coordinate with the municipalities of other provinces to make it nationwide. If necessary, the province should create an environment for the federal government to be involved in it. Success stories should be taken to other municipalities as well. The role of the province should focus on employment-oriented production. The provincial government should focus on what kind of companies it can attract with what tax concessions. The province should have a goal of bringing 4-5 of the big IT companies under the federation to its province.

Now the federal government has to coordinate with the provinces. It is not enough to establish relations only within the country, it has to have an impact at the international level. It has to bring policies and programs that will make it easier to export the products produced by the IT industry of Nepal and find markets. The federal government should work on how to create a brand Nepal, how to put Nepal in the world's picture in the digital economy, and to identify Nepal as an IT destination. Why do they have more influence than going to India? Why do they go to Bangladesh? Bangladesh has now developed as an alternative destination. If India is not their thing, they go to Bangladesh. They are branding themselves in that way. Nepal should also brand itself in the same way.

It should make a plan for its branding around the world. The government should mobilize its embassies. Embassies should be used to bring Nepal's products to the markets of the respective countries and for necessary coordination. Each embassy should send a budget for at least one program to commercialize Nepal's digital sector. Or, they should take the initiative to bring at least 10 tech companies there to Nepal. That is why the role of ambassadors is great.

At the policy level, it can be to attract foreign investment and provide tax concessions. Because we tech companies employ many people. Everyone pays income tax. They have also paid tax on the goods and services they purchase with their wages. They buy cars and bikes, take loans, and have paid tax on everything. If the government provides tax concessions to companies, it will employ more human resources. This will help reduce the unemployment rate. This will help control youth migration. When taxes are reduced, their wages will be able to increase. After all, that capital will reach the market.

The government should create an environment for opening more tech companies by overcoming policy obstacles such as taxes. If there are 1,000 now, let it reach 10,000. As innovation increases, tomorrow Microsoft will buy 2-3,000 Nepali companies. The federal government should also bring in foreign experts to the incubation centers run by all levels of government. An environment should be created for meetings with startups. This is not a new thing. India's Good Village is the closest example for us.

We should create an environment to bring in as much foreign investment as possible. Is it possible to go to Bangladesh and say I will do business without owning a company? No. Investors had to come. Nepal's environment had to be understood, learned. Information had to be easily available. For these reasons, foreign investment comes to any country. One is that they can easily bring capital to Nepal. The government has said a one-door policy. Work is being done on this, and more can be done better.

.

Here, it should be easy to withdraw and use the money of foreign investors. Third, they should be able to take the money with them. The exit policy should be easy. I understand that exit is difficult. Many good companies have exited from Nepal. Not that they haven't. The government should brand them too.

This could also be important. The government selected the top 20 IT companies. The government should set the criteria for which. Companies should be diversified. Whether they are run by women, companies from different provinces should be selected, or even from Kathmandu. Many countries have practiced this. After selection, the government will help those 20 companies to increase their resources by 100 percent. If I currently have 200 employees, the government will help me figure out how to increase it to 4 or 500. Wouldn't this double the employment rate in the country at once? The revenue coming to the government has doubled. Didn't the economy become dynamic? From real estate to other consumer goods, sales of agricultural products increased. The government had to think that way. Oh, it is not with the mentality of going there and giving an audit notice. It is not only the financial assistance provided by the government. It can also provide support and facilitation by using other measures.

The mayor came and told me that you have given employment to 200 people, you had to discuss what I can do to increase it to 500. All three levels of government have a lot of resources. We have not received any assistance from the government so far. Not even from donor agencies. If the government is going to facilitate, donor agencies will come. How can we help the top 20 companies prioritized by the mayor? We can talk to donor agencies and negotiate with one company per country and create an environment for business growth. In this way, another 500 to 1,000 new faces could have been taught work and skills. There would be a good discussion about skills.

Similarly, another main problem facing IT companies in Nepal is logistics management. 80-100 new employees have to be hired immediately. The current situation is not enough. We had to go to find an office somewhere else. We have to manage furniture and other equipment. Then, when those employees had to be dismissed after their work was done, there was a risk that the investment in logistics would be wasted. If there had been a working center somewhere, I would have been able to spend my time and that of my team on my work and not on managing these things.

The lack of reliable public transportation at night has added to the problem of hiring female employees in information technology companies. We have to work in other countries' time zones. If we were to work for Nepal, we would have dismissed female employees by 5 pm. For example, we work in Israel's time zone. 5 pm there means 9:45 pm in ours. We have to work at night. However, they cannot easily reach home due to the lack of public transportation at night. It would have been much easier if the state had provided public transportation even at night. The local government should also think about this.

Similarly, if we could provide good hostel facilities to female employees who come here from outside Kathmandu and work in IT companies, a lot of human resources could be developed. 'Girls' housing/hostels' should be developed. Currently, there are only very limited places. That is also not enough. An environment should be created where girls can get jobs and eat. There are many examples of girls' hostels in India and China. It helped them to focus on their work instead of focusing too much on household chores. This increased efficiency.

The government should not delay in setting up a separate body to look after IT companies. Sometimes they tell us to go to the National Bank, sometimes to the Ministry of Finance, sometimes to somewhere else. We have not been given a separate identity as an industry. I think we are defined within small industries. There are problems there too. They tell us how to register because it is not your product.

It is certainly not that the government has done nothing. Tax concessions have been given. IT companies that export have the facility of VAT returns. Now the government should call and take the initiative to civil society and others to develop and expand the IT sector.