ABM - Nepal Commerce and Economic Podcast

Nepal on the global IT map: how can local outsourcing companies break through to large Western customers, competing not only on price, but also on unique expertise in niche technologies?


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The global IT outsourcing market is a huge and growing arena. Its size is projected to increase from US$651.54 billion in 2024 to US$850.73 billion by 2029, showing a strong CAGR. At the epicentre of this frenetic activity is the Asia-Pacific region, which is both the largest and fastest growing market in the world. For Nepal, located at the heart of this region, a window of opportunity of historic proportions is opening up. With global IT spending continuing to rise after recent economic and political turmoil, demand for quality IT services remains robust.

However, geographic location alone does not guarantee success. Being in the most dynamic region of the world means not only proximity to opportunities, but also proximity to the fiercest competition. On the one hand, there is IT giant India, which has long and firmly occupied a dominant position in the global outsourcing market. On the other hand, there are ambitious and fast-growing players, such as Bangladesh, which are actively increasing their human resources potential and pushing out the recognized leaders. In these circumstances, the strategy of simply copying the Indian model, based on scale and low cost, is a losing proposition for Nepal. Trying to compete with India on the number of programmers or the cost per man-hour is to enter a race where the winner is already known.

The Nepalese IT industry is thus at a critical juncture. Further growth and globalization require not passively following regional trends but developing its own unique strategy. The path to success for Nepal is not a race to the bottom but an ascent up the value chain. It involves moving from competing on price to competing on value, from being a mere implementer to being a partner with deep and sought-after expertise in niche but fast-growing technology areas. This article is a study that proposes concrete steps for such a strategic maneuver.


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ABM - Nepal Commerce and Economic PodcastBy Alpha Business Media