In Information Technology (IT) Nepal is not a frontrunner, it is slowly coming of age, with an addition of considerable IT manpower in the country. IT outsourcing can be instrumental not only in developing this vital sector but also in helping generate lucrative employment and business for Nepal’s educated youths. It would be wise on the part of policymakers to take advantage of the burgeoning technological advances taking place all over the developed and some developing economies. Take for instance the IT market in the US, which is dominated by Indian and Chinese professionals. Nepali youths stand a

better chance than youths of many other nationalities because of their relative clarity of speech and command of the English language. Moreover, another advantage of outsourcing of job contracts by developed countries such as the US for Nepal can be its cheap labour, compared even to neighbouring and emergent economies.

About 500 Nepali IT graduates are produced each year and for want of suitable opportunities, most of them try to go abroad. The government needs to take steps to utilise this manpower in the country as far as possible. The government plans to build the Information Technology Park in Dhulikhel for which it has also purchased land but despite the passage of many years, the project is still in limbo. It is unfortunate that the authorities have failed to translate its vision into reality. The lawmakers must understand the real power of outsourcing, which can help convert small projects into larger and lucrative ones. But for this to become a reality, Nepal will have to first understand the outsourcing culture, find out outsourcing capabilities and generate IT services according to the clients’ requirements along with designing a strong marketing strategy. One thing is crystal clear though: Bigger foreign investors are more interested in the working environment and professionalism rather than petty politics. This will have to be borne in mind if full benefits are to be reaped.