IT-enabled services growing

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KATHMANDU, Oct 4 - Despite some hitches, IT-enabled services are showing signs of growth in certain sectors in recent times. As there has not been much progress in the field of information technology (IT), the history of the services is fairly new.

Besides earning foreign currency and producing some highly skilled and skilled manpower, such services also employ hundreds of youths. Some of the joint ventures have paved the way for more foreign investment in the sector.

IT-enabled services like Geographical information system (GIS), medical transcription (MT) and Call Centres are in operation and their entire business depends on foreign companies which they get through contracts.

Though one medical transcription company was closed a couple of months back, it has not affected the inflow of contract for MT as another such company has come up with a larger scale of business recently, creating hope among aspirant investors and job seekers. Beginners in GIS, Call Centres and MT in general get a basic salary of Rs 6,000 to Rs 10,000 and highly skilled manpower draw as high as Rs 80,000 per month plus other benefits.

Unlimited Numedia, an IT company that has been in the MT for about two years, has made a three-year agreement with an American company for a large scale business. And on the strength of the agreement, Unlimited has signed an agreement with Employment Promotion Commission (EPC), a state-funded agency, to provide jobs for 1,500 youths in MT.

Allen Tuladhar, CEO of Unlimited Numedia, says that opportunity in MT business is ample as there are many organized outsourcing industry in the US and Nepali companies can deliver the service earlier than the US companies because of almost 12 hours’ time difference.

Quoting a report of American Association of Medical Transcription, Allen says, the total volume of outsourcing MT business from the US to the third world countries is worth US $ 8-10 billion a year. And the growing number of ageing people in America would further increase the business, he adds.

EPC is providing an interest free loan of Rs 25,000 to all 1,500 to train them in MT, which the trainees have to refund within a year in 10 installments after they get job. The company has guaranteed the job for them for two years.

Binod Kumar Bhattarai, Member Secretary of EPC says, the Commission has made a tie-up with Unlimited to provide job to 15,00 youths 500 each in the eastern, central and western development regions.

Bhattarai also said that EPC is mulling to provide training to more youths in legal transcription.

Though some of the people involved in the business are more optimistic, some modestly say that Nepal still cannot go for hard core products.

Bijendra Shrestha, Managing Director of Meiken Digital Technology, a joint venture with a Japanese company in the GIS business, says there is opportunity for doing the business provided companies can develop and produce high quality software. But Nepal is not in a position of exporting hard core software, he adds.

And he says that training and retaining manpower is the biggest problem in Nepal, for which the private sector is largely responsible, but the government should develop infrastructure. His company has employed 50 people.

Rabi Shah, Director, Himalayan Telecommerce Pvt Ltd, a Call Centre, a company that provides information on particular companies to callers, says due to low labour cost, readily available English-speaking people and low infrastructure cost, there is potential of call centres.

Call Centres not only help people to obtain information on various issues, but also generates foreign currency. Besides providing jobs to hundreds of people, it also contributes to the revenue of Nepal Telecommunications Corporation (NTC).

Himalayan Telecommerce, the only call centre in Nepal, has been providing information on wide range of subjects in the country through its ‘Ask Me’ scheme. The company has employed 60 people. It has signed an agreement with an American company for international service.

APRACA meet in Nepal from Oct 15

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KATHMANDU, Oct 4 – The 44th Executive Committee meeting of Asia-Pacific Rural and Agricultural Credit Association (APRACA) would be held in Nepal from October 15 to October 17.

According to information provided at a press conference organised here today by Nepal Rastra Bank (NRB), it is the second time that Nepal is hosting the meeting after the 31st meting that was held in Kathmandu in 1994.

Speaking in the conference, Dr Tilak Rawal, Governor of the NRB said that the meeting would be helpful in exchanging the policies between the member countries. "Though there isn’t any immediate and visible benefits that Nepal would receive from the meeting, it is expected to produce long term benefits," he added.

According to a press release issued on the occasion there are 52 agricultural and credit financing organisations from 21 different countries associated with the APRACA. From Nepal, Nepal Rastra Bank, Rastriya Banijya Bank, Nepal Bank Limited and Agricultural Development Bank are associated with the APRACA.

"In addition to the executive committee’s meeting, the NRB would organise a one day Symposium on Rural Financing In Nepal: Challenges and Issues," says the press release issued by the NRB.

Bijayanath Bhattarai, Deputy Governor of the NRB, is leading the Nepali team that is taking part in the Executive Committee’s meeting.