Cover-Feature

Looking back at achievement made by humans, one should really be surprised and appreciate it. From 18th century of great mechanical system accompanied by industrial revolution to 19th century of steam engine era and now 20th century afterward has been the era of information technology. The pace of development of information technology, IT, in various countries of the world has been so rapid that in coming centuries the information rich countries would be better placed than the information poor countries in the world map.

IT is the new frontline and measures different things, to different people. The global market for Infotech-enabling services is estimated to be $585 billion by 2004. It has become a threat to developing countries where there is no advanced and appropriate technology according to the needs, traditions, environment and resource of the country.

Computers were first introduced in Nepal in early 70s, but its application and commercialisation started only in the 80s while the promotion of computer education in the national education system started only in 1990s. Until now, computer in Nepal is used only as a substitute for typewriter in many organisations.

Present scenario of Nepal in IT includes computer vendors representing almost all-global brands as well as locally assembled computers. More than half of the companies engaged in IT businesses, are chiefly providing training programs of one type or another. Tribhuvan University, Kathmandu University, Pokhara University and Purvanchal University are offering formal computer education of various levels such as B.E. Computer Engineering, Bachelors in Information Technology, Bachelor of Computer Application and other diplomas such as MCA and PGCA.

Computerisation in Government and Public Sector started with the establishment of National Computer Center back in 1974. One of the first computerisation in this sector was the SLC Board, office of Controller of Examinations. Presently all major government institutions have been fully computerised.

IT has become the highest contributors to the GDP for almost all developed countries. This industry is growing rapidly in the world and is estimated to grow still further but Nepal has not yet received much benefit from this industry. The contribution of IT to Nepal’s GDP is almost nil. Nepal would not be able to get the minuscule of the huge benefits from the global boom, which IT has brought into, unless the government accords top priority to this sector.

The statistical data on the number of Internet Users in Nepal compiled by Nepal Telecommunication Corporation (NTC) show that as of fiscal year 2000/2001 end, 24,957 organizations and individuals used Internet services.

A study commissioned by NTC said more than 2000 individuals in Nepal opened their Internet account during the first four months of the year 2001 while on-the-spot survey and web-site inquiry conducted by International Telecommunication Union (ITU) says that at least 8,852 individuals acquired the internet services during the first four months the fiscal year 2000/2001.

Computer Association of Nepal (CAN) had last year put the estimate at around 18000 for all those acquiring the membership from various Internet Service Providers (ISP). CAN estimates say that the Internet service contracted for by each family or an organisation is being used by at least five additional users. From the 100,000 internet users last fiscal year, there are now 200,000 users, CAN estimates said.

IT experts say the number of Internet Users in Nepal has doubled primarily because the number of Internet cafes have quadrupled and the fee for browsing the Internet has considerably dipped.

The once-expensive and limited Cyber Cafes found in some parts of the Capital’s Thamel and Durbarmarg areas are now mushrooming around almost every where.

Similarly, the monthly fee paid for the use of Internet some three years back amounting to Rs 3000 has declined to less than Rs 1000. This has also fuelled the sprawling growth of Internet Cafes in Nepal.

NTC authorities say the rise in the Internet users has skyrocketed due to a rise in Internet Service Providers (ISP) following steep competition between them. There are now 15 ISPs in Nepal.

Similarly, a rise in the VSAT network and its users has fuelled the use of internet on an ever increasing scale.

The increasing demand for internet services has also been triggered off by the demand for on-line phone services provided by computers which is cheaper than telephone services.

The attractions offered by hordes of international on-line newspapers and ready-to-use study materials posted on the web-sites have also fuelled the trend.

Students aspiring to study abroad obtaining information from the Internet also raised the number of users. Further more, with no legislative ban on the on-line chat it has a found large customers in Nepal.

The ITU survey report said the multinational organizations like the United Nations Development Programme (UNDP) and World Bank each consumes 20 percent internet service in Nepal, which domestic, government, non-government organisation, educational institutions and business organisations consume 20 percent, 5 percent, 15 percent, 30 percent and 10 percent and 10 percent respectively.

Statistics compiled by the Internet Division of the NTC show that the World Link Communication has the largest membership of around 7500 internet users, while Info-Com Private Limited has garnered around 5000 and Mercantile around 4000. NTC has around 2000, Everest Net 1152 and Computer Land Communication System has 1500 customers in all.

Two years ago, the World Link Communications had 4350 Internet users, mercantile had 1347 and Computer Land 887. The users have increased phenomenally over the last two year, the study said.

Despite increasing utility and decreasing prices of computers, its penetration into the Nepalese market is still not impressive. Both buyers and sellers of personal computers (PCs) say that lack of affordability is the chief reason behind the meagre number of the equipment. Though dealers in branded computers say that prices of branded PCs dips by 30 percent annually and a good number of companies that assemble PCs are emerging, majority of people still cannot afford buying even assembled computers.

Assembled computers are 100 percent cheaper compared to branded ones, yet they are not affordable to larger chunk of the population. While a branded 15" colour monitored Pentium II PC with IGHZ processor costs around Rs 80,000, an assembled PC of similar configuration costs around Rs 40,000 in the local market.

Despite lower prices, it is risky to buy assembled computers as parts are not genuine, which later turns out to be inefficient. Moreover, the most worrying part of buying assembled computers is warranty, which in most cases is non-existent.

Dealers too privately say that buyers are being cheated. Branded PC sellers also say that buyers of assembled computers are cheated in warranty too.

It is estimated that over 2,000 units of branded PCs and around 8,000 pieces of assembled computers are sold in Nepal and the sale grows by an estimated 20 percent annually.

The government has said that it has been difficult for the government to meet the set target of providing telephone connections to each and every Village Development Committee (VDC) by 2060 BS owing to non-availability of the US dollars 70 million needed for this purpose.

At present, telephone facilities are available at 1,765 VDCs and a committee comprising representatives from the Ministry of Information and Communications, the Ministry of Finance and the National Planning Commission (NPC) had evolved an action plan to extend the facility to the rest of the VDCs for which Us dollars 70 million was necessary. NTC was to provide US dollars 30 million and the remaining sum was to be provided by the Ministry of Finance and the Telecommunication Authority, but as the money could not be made available, the Rural Telecommunications Programme could not be extended as per the set target.

The government has further stated that the US multi-national Titan Wireless which had been awarded the tender last year to extend telephone lines to the remaining 534 VDCs with World Bank assistance had pulled out citing security reasons.

Burgeoning cyber cafes and communications centres in the capital are offering international calls at unexpectedly low rates through internet telephony, which has come as a relief to customers who were otherwise forced to pay 15 times higher charge for the same call.

Internet telephony is a phone call made through internet by entering into a particular website and encrypting code number and typing the desired number. The operator of the service pays the international operator in dollars.

Before internet telephony came into use two years ago, callers were forced to pay Rs 140 per minute. But no more. Now it costs as low as Rs 5 and as high as Rs 15 minute to make a call in the US.

The reason behind the incredibly low charge for internet telephony is that some international websites offer free calls packages. Now they have begun charging a few cents. The local service providers just take a nominal charge to meet their operation cost.

Mostly local youths and foreigners throng the cafes and centres for their unimaginably low price for international calls, internet browsing, e-mail and for net chatting.

In keeping with the demand of users, such cafes and centres have upgraded the internet telephony using special gadgets like IP Star, Yap Jack, Info-Talk etc., which have better sound quality than the internet phone but inferior to that of the fixed phone. Charges range from Rs 15 to Rs 30 depending upon service quality. But it is the price that matters.

Operators of such cafes and communications centres say that though they offer long distance calls at very nominal charge, their profit margin is also good in the business.

Owners of cyber cafes and communications centres especially in tourist areas like Thamel, Bhaktapur and Patan Durbar Square, say that international calls through basic phone has plunged by over 80 percent following the introduction of the new system.

Though the Information Technology (IT) Policy 2000 aims at exporting software worth Rs 10 billion within the next five years, there is a little hope of achieving the target, given the present scenario of software production.

Software developers and producers say lack of cyber law, skilled manpower and dearth of publicity that Nepal can produce software, have hit hard to the lately emerging software business. Though some Nepalese companies are exporting software to Japan, Germany, the Netherlands, France, Greece, UK, USA, Canada, Denmark and other countries, the total volume of business is very meager.

The total software development and production sold at the local and international market is hardly worth over Rs 150 million per annum. Though there are some 15 software developing companies, only five or six are export-oriented and the rest cater to the limited demand of the local market.

Lack of necessary laws has not only discouraged the emerging business with huge potential, but also incurred a considerable amount of revenue loss. This has also shut the door to opportunity, as foreign investors are reluctant to invest in Nepal.

Computer Association of Nepal (CAN) has submitted a proposal for budget allocation for three years for the development of (IT), with a view to expedite the programs as envisaged in the lately brought out information technology (IT) Policy 2000.

It has proposed an approximate budget of Rs 1.15 billion including the amount required for building infrastructures, institutional development and annual expenditure.

One of the major and significant recommendations made by the Association is to establish a Technology Business Incubator for IT industry. It has also advised the government to enforce the use of IT in financial institutions and government offices for the purpose of good governance and transparency.

In order to produce specialists in different fields, it has proposed to set up a Centre of Excellence for higher education in IT, modeled after the Institute of Information Technology (IIT) of India. Exemption of tax on IT industries for five years and to declare IT as a service industry are other valuable recommendations of CAN.

The Association has also suggested to offer special financial packages to entrepreneurs including the Non-Resident Nepalis (NRNs) to help them set up educational enterprises and urged the government to instruct banks and financial institutions to float special bonds like ‘Edu-cash’.

In order to attract foreign direct investment (FDI) to the IT sector, CAN has made suggestions to carry out promotional activities in different countries in coordination with the diplomatic missions abroad and to remove ceiling on investment made in human resource development (HRD) institutions and companies.

CAN has also recommended to allow multinational IT HRD companies to open similar companies in Nepal on condition of reinvest 25 percent of their revenue generated in Nepal. Besides, it has suggested to develop selected campuses as Centres of Excellence and to produce skilled manpower in a large scale.

To encourage all IT companies in the country to set aside five percent of their value added revenue, to support IT education in the form of scholarships and research grants is one of the recommendations. The Association has also suggested the government to actively involve professional bodies like CAN, NEA, SECEN, NIUG, ITPF, CESON etc. and employers associations like FNCCI, HAN, TAAN, NATA in promoting and maintaining ethics and standards and output of HRD institutions.

The present IT Human Resource development in Nepal is not adequate. Skilled manpower available today is not at all sufficient for widespread use of IT. Although lots of joint efforts have been put on by the CAN and government in the development of IT sector of Nepal, but it seems nothing substantial has been done so far and this sector still faces major problems. As highlighted by the professionals, poor infrastructure, lack of skilled man power, brain drain due to better opportunities abroad, lack of advanced technology, lack of awareness amongst potential investors and economic backwardness are major constraints to the industry.

With the increasing use of computer in almost all the sector ranging from manufacturing, financial, government organization, airlines etc., it cannot be said that the scope of software industry in Nepal is nil but can be said that it is still in toddlers stage. Application users still do not believer in Nepalese software. Much is to be done in the development of this sector. The government is showing some interest for the upliftment of this sector and it is believed that intervention of government will increase the scope for this industry contributing increase in the country’s GDP.

Primarily, IT business in Nepal has been built around individuals and has failed to develop into formidable institutions. IT related business that has sprung up, are more trade related than production. In absence of the critical mass of real creative entrepreneurs who believe in products and not trade. When Information is becoming basic raw material these days, country’s prosperity can’t be imagined without the in-and-around of technological know-how and its subsequent adoption. IT business in Nepal has remained to cater to the domestic market and it may take a long period of time for Nepal to get that competitive edge over the other dominant players in the region like India and China.

IT services are labour intensive jobs and it costs a lot of money even for semi-skilled workers in developed country. With the availability of communication infrastructure in countries like Nepal where labour is cheap, foreign companies are looking for opportunities to contract such job out. Organised promotion of IT Industry in Nepal to the foreign market is lacking and a lot of effort is needed collectively from the Government, IT Industry and professionals towards this end to Place Nepal on the Global IT Map.

After years of highlighting its potentials, Nepalese techno-preneurs finally seem to have started cashing in on the global IT boom. With an IT policy in place and cyber laws in the offing, the private sector is now eyeing the vast international market of IT –enabled services. From medical transcription to call centers, hundreds of youths are finding jobs. As the IT sector is on the verge of making an impact on the economy, the authorities need to adopt a well-defined approach.

More important, most of the employees of these IT-enabled business come from well-educated bracket, including those from the ten-plus-two level with sound English and basic computer knowledge.

Interestingly, these youngsters enjoy a starting salary ranging from Rs 5,000 to Rs 10,000 – unheard of amounts in other sectors.

Unlike the carpet and garment sectors, where most of the employees are semi-literate, IT is offering jobs to educated youth, who earlier had no choice but go overseas, in a preferred line of profession. The turnover of Nepal’s IT sector is estimated at between Rs 1 billion and Rs 1.5 billion.

The vast global market for IT-enabled services becomes clearer if one looks at the target set by India – one of the leading countries in the IT sector. It aims to earn US$ 35 billion through the IT – enabled services alone in 2008 as against its expected projection of total earnings of US$ 85 billion from software sector during the same period.

The government though belatedly, seems to have understood the importance of promoting IT-enabled services. The recently released IT policy has also opened the point-to –point voice communication for the private sector without their having to affiliate to the Public Switched Telephone Network. This provision is specially welcome for call centers.

The policy also envisages the National Information Technology Center (NITC) whose job will be to act as data bank, computerize government offices, build websites for them and work as regulator for the smooth functioning of this sector.

The policy has also set up a venture capital fund of Rs 100 million that will be given to interested parties depending upon their idea and expected future cash flow. There is no need for collateral. Initially, the execution of this fund will be entrusted to the NITC to be transferred to the private sector later on.

The government is also planning to introduce an IT-bill – popularly known as cyber laws – in the parliament soon. The final draft of the bill is ready. It mainly deals with digital signature verification and cyber crimes. In absence of the regulations on IT, e-commerce has suffered. As it involve electronic payment, the question of security is vital and so is the mechanism to punish the defaulters.

The authorities have focused their attention on the three main areas of the sector – access, education/training and application. As far as access is concerned, there are fewer problems. Forty percent of the VDCs already have access to telephone lines. Here, the challenge is to bring down access charge as well as the cost of computers.

With the objective of developing IT education, the government plans to give Rs 15 million to major universities, which will be utilized to train people at the post – graduate level. The authorities hope these highly trained people can then be utilized to impart knowledge to lower levels.

The policy also has the provision for setting an IT Development Fund, which will collect money from the private sector, government as well as foreign donors. Apart from the existing custom duties, the software exporters will now have to pay a 0.5 percent additional service charge as contribution to the fund.

In the area of applications, the government is also pushing to promote e-government by encouraging the use of computer in such areas as financial and personnel management.

The government’s IT policy aims to reach the volume of software and hardware exports to Rs 10 billion in next five years.

Although there is widespread concern over the brain drain in the IT sector, many believe this could be a blessing in disguise. One reason why India has done so well in the software industry is because of the large pool of Indian experts based in the United States. It is said that almost 30 percent of the people involved in the software sector in the United States are people of India origin.

At present, there are around 1,000 people who have at least a bachelor’s degree in software in Nepal.

For the IT sector to succeed, four major segments need to work in tandem. The government, academic institutions, preferably funded by the government, dynamic IT industries and other enabling sector, including infrastructure in telecom, are the four pillars of the IT.

Even in the education front, the rise of IT-specialized colleges in the past couple of years has been phenomenal. From Aptech to NIIT, many reputed academic institutions have branches in Kathmandu. There are around 1,000 training institutes and 25 colleges offering bachelor courses on IT education. But still, the country has to go a long way in setting up standard academic institutions at par with those found in the Indian cities of Bangalore and Hyderabad.

In the last decade, many software companies have made tremendous stride. Firms like Mercantile, Unlimited, CAS Trading, Beltronix and others have made remarkable progress. Their continued growth is vital to make the sector economically indispensable.

The basic infrastructure in telecom is reasonably good in Nepal compared to the region. Out of total 3,913 VDCs in the country, 1567 have access to telephone, that, too, fully digital. Given the difficult terrain of the country, this is no mean achievement.

If all goes well, as expected by the officials in the Ministry of Science and Technology, Nepal will be one of the major IT countries in the South Asian region by 2005. Further, Nepal aims at exporting information technology related services equivalent to Rs. 10 billion within the next five years.

Nepal hopes to generate employment by providing information technology to the general mass, forming a knowledge-based society, and establishing knowledge-based industries in the country.

With these plans, His Majesty’s Government has approved the information Technology Policy, 2000. Though late, the government has approved the policy, paving the way for the sector’s development.

Although the first computers were introduced into the country three decades ago, this is the first ever IT policy brought forth by the government. For long, Nepalese IT entrepreneurs and officials have been demanding an IT policy to develop the IT sector.

In 1971, Nepal had hired a second-generation computer, an IBM 1401, for the population census. The National Computer Centre was established in 1974 to fulfill the data processing requirements of Nepal. The private sector came in the field of software development and application in the 80s.

Although IT professionals in the country are still not very happy with the present policy, they are, however, optimistic because the policy more or less shows the government’s commitment towards developing the IT sector.

The overall vision of the policy is to establish Nepal on the global IT map within the next five years.

The Ninth Plan (1997-2002), states that "Information technology will be developed in a way to play a highly contributory role in the all-round development of the nation" with emphasis laid on the utilisation of computers to formulate and manage plans and policies the government offices. They are also to be used in the field of education, health, agriculture, finance and intellectual services to develop information technology as development infrastructure.

For a country like Nepal, the IT sector offers tremendous potential. The cost of VSAT (very small aperture terminal) has come down. Internet service is not only expanding but also becoming cheaper. Landlockedness or geographical diversity are no barriers.

Furthermore, Nepal has had the experience of exporting software to countries like America, Japan and Germany. And universities too have been focusing on computer education.

To achieve the objectives, according to the Ministry of Science and Technology, the policy has spelled out a 15-point strategy. Accordingly, the government’s role will remain as promoter, facilitator and regulator. Research and development and expansion of information technology will be done, giving it high priority with the private sector’s involvement. With the involvement of the government and private sector, skilled manpower will be developed for the sustainable development and expansion of information technology. Indigenous and foreign investment will be encouraged for the development of information technology and related infrastructure development.

Likewise, establishing Nepal on the global IT map, legalising and promoting e-commerce, use of information technology in the development of the rural sector, promotion of IT industry, inclusion of computer education in the school curriculum, establishing Nepal in the international market through IT, and exporting IT-related services (software and hardware) are other strategies of the recently approved IT policy of the country.

To translate the strategies into practice, a 17-point policy has been spelt out. They include announcing the IT sector as a priority sector, priority to research and development of IT, creating a private-sector friendly environment, gradual expansion of Internet facility in all the Village Development Committees of the county, helping educational institutes, developing physical and virtual information technology parks in various places of the country, use of IT for promotion of e-commerce, e-education, e-health, and technology transfer in the rural areas, formulating laws to legaliser IT application, and use of IT in all government procedures and legalising such uses are the policies spelt out in the IT Policy 2000.

The government has spelled out the action plan too. The action plan deals with private sector participation in infrastructure development, human resource development, expansion of information technology, promotion of e-business and facility.

The IT policy states that customs tariffs will be one percent only for importing hardware, software and computer parts. IT-related services could be declared as an essential service. The government would initially invest Rs. 100 million for a Venture Capital Fund.

Priority will be given to computers, parts and software produced in the country. Foreign currency earning IT related software and services exporting companies/firms will be treated as export-firms will be treated as export-oriented industries. An Information Technology Development Fund in be set up. An additional service charge of 0.5 percent will be levied in addition to customs duty on software export for the Information Technology Fund and Nepalese working abroad would be encouraged to invest on technology transfer and market promotion.

If the IT Policy is strictly implemented, a National Information Technology Council will be formed under the chairmanship of the Prime Minister. Beside, a National Information Technology Center Information Technology Park Development Board will also be formed.

Meanwhile, it is learnt from the Ministry of Science and Technology that formulation of a cyber law is in the process.

Exhibitors

--> Aptech@Lalitpur

--> Arena Multimedia

--> Associated Enterprises

--> Bajra Net Pvt. Ltd.

--> Beltronix

--> Boston

--> Boston’s Cyberkid

--> CAS

--> Computer Point Nepal

--> Connection

--> CSE College of Software Engineering

--> C.S.T.C. Pvt. Ltd.

--> Cyber International System

--> D&D International

--> Digital Telecom International Pvt. Ltd.

--> Digitek Com NP Pvt. Ltd.

--> Easy Link Pvt. Ltd.

--> Furniture 2000 Pvt. Ltd.

--> Gega System Pvt. Ltd.

--> IMTC International

--> Infocom Pvt. Ltd.

--> Interactive Group Pvt. Ltd.

--> International Electronics Concern Pvt. Ltd.

--> IT Nepal Pvt. Ltd.

--> IT Solutions Nepal Pvt. Ltd.

--> ITNTI

--> Kashyap Radiant Systems Ltd.

--> Kagaj Kothi (Xerox)

--> Keith Devis Management Consulting Pvt. Ltd.

--> Mazda International Computech

--> Mercantile Communications Pvt. Ltd.

--> NIDC

--> Nepal Information Technology Pvt. Ltd.

--> PC-Info Pvt. Ltd.

--> Prime College

--> SBS The E-media Trading

--> Shrestha Amrit Traders Pvt. Ltd.

--> Singh Incorporate Pvt. Ltd.

--> Smart Enterprises Pvt. Ltd.

--> Software Solution Integrate

--> Stabiline System Nepal Pvt. Ltd.

--> STG Computer Education

--> Tech 4 Nepal Pvt. Ltd.

--> Touchstone Sales & Services Pvt. Ltd.

--> Trade Wings

--> View Nepal Pvt. Ltd.

--> Xansa Websity

--> Applied IT Solutions Piorider Pvt. Ltd.

--> Informatics Computer School

--> National College of Computer Studies

For the last seven years CAN has been organizing Infotech Shows annually to draw national attention to this sector. This year the association is organizing 7th CAN IT Show at the Birendra International Convention Center for a week starting from January 25.

This year CAN is planning to organize a major conference on IT during the show. "Experts from India, Bangladesh, Pakistan, Sri Lanka and Malaysia will take part in the conference. Some of them will also present papers.

CAN expects around 100,000 people to visit the show this year. More than 100 Nepalese and international exhibitors are expected to participate. As the increasing streams of visitors indicate, the interest and involvement in the IT sector is definitely growing. What is needed is the proper channeling of this latent energy to reap benefits from the 21st century’s knowledge-based economy.

In my perspective, this year has been the worst year for Nepal with a number of mishaps taking place. All these definitely have had negative impact on the entire business environment of Nepal. And the IT sector cannot be isolated from the socio-economic condition. In that perspective, we have seen quite a few IT companies close this year. We have also seen a lot of problems for IT business to manage. Now with the state of emergency in place it is not possible for us to operate on a three shift basis, a night shift is not possible. So there are a lot of these problems. IT in the country, even before an industry was born, has been aborted. So it has been an uphill battle for the IT industry to have strong roots. Last year also we saw the dot coms reeling in the US because of which companies, including Unlimited, doing outsourcing business had to face numerous problems. But despite all of these problems, Unlimited has grown. From employing 300 people, we are now adding 1500 more people and going into three more cities. So I feel we will overcome the bad times and go on to better things.

If you go through the IT policy, it is a dream come true. Everything that a company could hope for is there in the policy. But it is so ambitions, the government will never be able to implement the policy. It is like the politician’s speech where he promises the world but delivers nothing. There is no action plan for the deliveries. It’s been now 15 months for the IT policy to have come out. And so far we have not even seen a national IT council and national IT board being formed. If the government is not even serious about forming a committee, what kind of implementation of the policy can we expect? They are not serous about the policy at all.

Our biggest raw material is people. And our Nepalis people are so much satisfied with mediocry. No one wants to excel, every one is satisfied with average quality. Secondly, the social sickness that I see in the country is our problem of ‘tomorrow’ culture, we don’t do it today. The third sickness is our problem of blaming each there and pulling people down. And this practice is not at all constructive and serves no one’s purpose.

If you look at the reasons for a person’s investment, there might be investors who will only invest if there is a healthy cash profit. Again, for people like us, the reason for investment might be more strategic. We are not into other businesses like the industrialists here who might just be looking at the return perspective. We might be looking more in terms of growth, strategy and respectability. So there is a different reason for investment. If you look at the environment for investment in the IT business in the country, our bankers don’t think it is too good. They don’t think that this is the right time at all. Of the development budget, 30 percent is going into defence. So bankers who are conservative do not think this is the right time for investment. Of course, we are defying those conditions and saying we want to go into larger investments.

With the security problem and the state of emergency in place, I don’t think any foreigner will want to come here. People do not want to come here for holiday, do you think they will come here to put in their money? Foreign direct investment in the IT sector will just not come. The foreign investor has the whole world to invest in. Give me one reason why he should come to Nepal. Moreover, in an emergency any ordinance can come. Tomorrow, the government might look to nationalise properties of all foreign companies.

What sort of activities your company has been doing since its establishment?

It has been around nine years since our establishment. In the last nine year, we have grown from a four member company to employing three hundred people. And now we are recruiting 1500 more people. And I have been saying all along that we are in the business of growing. I am even proud to say that we are the biggest IT company in terms of manpower. We also have presence in Itahari, Nepalgunj and Dhangadhi apart from Kathmandu. So we are now proud to claim that we are a pure national company with our branches in all development regions. And we would like to dream that we just don’t want to be a national company, we want to be a multi-national company and move beyond the borders of Nepal. In terms of activity, we are into four areas of business. We would like to say that we are a software company. Our mission is to become, by 2003, the biggest, most respected and most profitable software IT company, not only in Nepal but in the export market as well. And our focus is more on the export market. With that in mind, we are involved in four areas of work. Two areas is on the domestic market. One is software distribution. We are distributors of software for companies like Microsoft, Novell, etc. We import their products, add value and sell them to domestic consumers. The other is that we are an ISP. The other two, one is software development and the second, medical transcription. This is on the export market. Today, 65 percent of our revenue is accounted for by export and 35 percent by domestic market. By the end of next year, 95 percent of our revenue will be from the export market.

For the local market, yes, I have been the first general secretary of CAN. But as the CEO of Unlimited, CAN Info- Tech has nothing to offer my company. It does not cater to the overseas market which is our area of focus.

I don’t think the environment is very good. Nepal is in emergency period and it will affect all the business sectors including IT sector.

To some extent. But the policies are just tools. It depends on the way the implementation take place.

There are a lot of problems. The taxation policy, financial activities and the eco-political situation govern the tranquility of the business.

Yes, of course. But the potentiality does not mean reality. We have to explore the potentiality and cross a lot of hindrances.

What sort of activities your company has been doing since its establishment?

Computer Advance System (CAS) is doing trading of office equipment. We are the dealer for world renowned brands like Compaq, Brother, Reilo, Compex, Panduit, Prestolite, Novell. We also provide services. We are the ASP for Compaq. We have several AMC with renowned companies. We have our sister concern Mandala Software for software development.

Yes. These types of information technology shown will generate awareness in capability of the IT tools. I believe when the rain falls it does not fall in one man’s house. We will definitely get a pie of the cake.

No. of PCs 50,000
No. of ISPs 10 (operational), 13 (licensees)
Internet Accounts 25,000
Internet Users 100,000
Home 20%
Commercial 30%
NGO/non profit 15%
Education 10%
INGs 20%
Government 5%
Internet Bandwidth 7 MBPS
No. of. np domains 290 (1999)

VSAT Providers 6
VSAT Users 115
Telephone density 1 per 100 people
Mobile users 8,000 plus
The government’s IT policy aims to reach the volume of software and hardware exports to Rs 10 billion in next five years.
No. of ISPs 10 (operational), 13 (licensees)
Internet Users 100,000

The prospect of IT business in the country is growing, I’m sure with the mushrooming of IT institutes in the country there is a lot of potential in the coming generation.

If everything goes according to the IT policy then it definitely supports the IT Industry.

I don’t think this is the right time for investment into some new ventures, as we all know the whole world is going through a bad phase including Nepal. So I guess as soon as there is some progress in the economy and the political situation we will have a favorable environment for investment.

In terms of foreign Investments in IT, well in hardware sector I don’t see much potential as the market for the IT in Nepal is very small compared to other ASEAN countries, but there definitely is a potential of foreign investment in the software development in Nepal. But there is a great potential of foreign investment in the Infrastructure development of the IT sector.

What sort of activities your company has been doing since its establishment ?

We have been in the computer peripherals and music system trading business. We are the authorized sole distributor for Lexmark International, Optoma Corporation and AIWA. Basically we deal in entire range of office automation products.

Definitely, people will get to know the new technology and what is available in the market.

1971 Use of second-generation main frame computer (IBM 1401) for the first time in Nepal. It was used for national census of 1971.

1981 His Majesty’s Government brought another main frame computer (ICL 2950/10) for the national census of 1981

1982 An American Company Data System International established with the objective of software development and export. The company exported software mainly to Us Federal Government projects 1982-87 Computer education and training to about 20 staff of NCC in different programmes

1982 Introduction of Apple microcomputer – first participation of private sector in computer application and training 1982 NCC established training unit 1990 NCC bought a Mini computer "Prime 4050"

1993-94 Mercantile Office System launched Internet services for the first time in the country. Today, number of ISP has reached 11.

Number of internet users is about 9,000. If the e-mail facility is included the number touches about 30,000.

1998 World Bank conducted a study and revealed that IT could be the largest export industry with possibility of reaching annual export of US$ 1 billion in 15-20 years

1998 Government constituted a high-level committee, headed by Vice Chairman of National Planning Commission (NPC) Prithvi Raj Ligal to work out a long-term plan on IT and mobilize economic and technological resources for it

1999 Study conducted with the help from UNDP and draft report on IT Strategy for Nepal, Preliminary Assessment and Recommendations submitted

It is the most favourable condition and profitable environment for IT business to flourish in Nepal.

Well, the government’s IT policy was a great step towards making this industry a favourable status in this country, when other industries are facing problems. The policy is aimed at placing Nepal in the world IT map. I would see that as real positive step. But the government should not stop here, it should go on to see that we are identified properly.

There are few trends that are prevailing in this industry that have to change. Otherwise this is an industry with vast potential for anyone to do business as this is in beginning stage of a great industry.

From my view point, I believe that if we are able to prove that the industry is viable investment will be assured. But that effort should not stop within the perimeters of the capital.

I will make statement here in the lines of the previous question. If we prove that there is big opportunity for the foreign investors, which is there, then I do not see why there will not be any foreign investment.

What sort of activities your company has been doing since its establishment?

Kaashyap Radiant Systems Limited (KRSL) was established in 1997 in a joint venture tie up with Radiant Systems, NJ, USA. The parent company Radiant Systems in USA is providing management consultants to many IT giants like IBM, SAP, CMG Academy, etc. KRSL in Nepal is represented by INNOVATIONS (P) LTD, a member of VIKDHA group of companies.

Today, Kaashyap Radiant is the leading SAP and ESAP implementor in East Asia, particularly in Saudi Arabia. Kaashyap Radiant Systems Limited is one of the leading IT training providers and was first to introduce many of the leading technologies along with a diversified approach to the training methodologies. This training division is segmented in three forms. For education in the general masses it offers Kaashyap Infoschool, which gives education from the beginners to experts with courses ranging from one month to two years. Here, all the courses are from general to advance topics such as latest technology tools like Microsoft’s Dot.Net and Sun Microsystems J2EE along with Mobile Technology. Secondly, under the banner of Kaashyap Vertech, KRSL offers courses that are explicitly for the experts from the segmented sectors or who want to be in particular expertise like banking, insurance finance, etc. Third unique offer that comes as a surprise package for the students in Nepal is the university degree courses from 1 year to 4 years. These courses are offered from Northwestern Oklahoma State University, Oklahoma, USA and courses from Charles Sturt University, Australia. These courses form a unique pattern to the students, in the form of affordability and easy access to international standards of education.

The company has planned its operation even in the field of IT development and its own software sales in Nepal, along with giving rich IT education.

We are a new entrant into this sector, and had begun with medium range. But we have leaping plans from the next month onwards. We have our diversified actions in two main areas that are training and that will be well supported by very efficient IT development teams. As far as training is concerned we are proud to say that when a real high end training is called for then we are right up there. We are specially strong in the component technologies and other high end latest technologies. We have our courses from various universities around the globe and make these international studies affordable to the students of Nepal. Apart from these we are providing study program with a guided career plan so that students are able to plan ahead with their area of work without any confusion on the completion of the training.

No doubt about it. We are really thankful to CAN for providing us with this kind of wonderful opportunity to conduct our business demos and make our presence in the market. As a new entrant we are eyeing this event to make best use of it and promote ourself in a big way.

As far as the environment in the country for IT business is concerned, it is gradually becoming conducive. Given that certain terms and conditions are fulfilled, Nepal can be a software hub in near future.

Our existing IT policy, undeniably, needs certain timely changes so as to boost cybertech business in the country.

Obviously, there are many hurdles in doing IT business. Among them, I see the laws for foreign exchange and re-exports and imports as major obstacle.

Of course. We have tremendous possibility to join hands with Indian IT industries.

In my perspective, the potential of foreign direct investment in this sector is not yet sound.

What sort of activities your company has been doing since its establishment?

My organization is carrying out various activities such as cartoon software, event, feature films and so on.