Government devising new policy to promote IT, BPO
KATHMANDU, APR 11 -
The government has initiated preparations for introducing a policy to help promote information technology (IT) and business processing outsourcing (BPO).
BPO means providing information technology-related services to foreign companies from here without physical presence there.
The Ministry of Science, Technology and Environment has started collecting inputs from experts, associations concerned, and local companies in this regard.
Despite huge potential in software development and BPO services, the country has not been able to rip the benefits from the sector. There is no specific policy framework to promote the sector yet although the sector has been included in the Nepal Trade Integration Strategy as one of the services having huge potential.
Rajan Raj Pant, controller of the Office of the Controller of Certification under the Science and Technology Ministry, said the demand for IT services from international markets has been rising due to cheaper labour in Nepal. “The policy has been necessary for gaining faith of customers and setting the minimum level of quality assurance,” he said. There are an estimated over 6,000 BPO companies in Nepal working for international companies. However, only some 250 of them are registered legally. As per the Computer Association of Nepal (CAN), labour charge in the local market is cheaper by 35 percent than that in India, which has prompted foreign companies to buy services from Nepal.
“Many people are working smoothly, but are maintaining low profile due to tax issues,” said CP Adhikari, coordinator of BPO/Software Committee, CAN. He said the government has to win confidence of local companies and promote the country’s potential in the international market.
Outsourcing companies have been saying the government should emphasise on ending load-shedding, providing incentives to such companies and assure data security.
Many companies and individuals have been involved in BPO services that range from normal low-skilled service like data entry to high-skilled services like software development, graphic designing, animation or medical transcription.
As per the Ministry of Commerce and Supplies, the IT and BPO services are exported particularly to EU countries, the US, Japan, Australia and New Zealand.
According to IT expert Manohar Bhattarai, there is huge potential in mobile application development. He said the government should work as per the existing IT Policy or make needful amendments to the policy to promote the BPO sector, rather than devising a separate policy. The IT Policy amended in 2010 has aimed at facilitating outsourcing companies and developing the IT sector.
It is estimated that around 5,000 graduates enter the labour market with degrees in ICT every year in Nepal. Through the proposed policy, the government aims to attract international investors in the IT sector, set strategic direction for the BPO sector, create employment opportunities and certify and accredit training agencies.
Source: The Kathmandu Post
