NATIONAL7Spotlight Weekly)]

‘The IT Sector Is Doing OK’

— SHYAM AGRAWAL

SHYAM AGRAWAL is the managing director of Worldlink Communications, a leading Internet Service Provider (ISP). He spoke with SANJAYA DHAKAL on issues facing the Information Technology sector in the country. Excerpts:

How do you find the present scenario in the IT sector in the country?

As far as the IT sector is concerned, I would say the present scenario is OK. It is neither very good nor very bad. When we say IT, it comprises lot of things like ISP, software development and other supporting services. Among these components, ISPs are doing OK, despite the stiff competition. The other two components of IT are not in very good shape. In fact, they are still in infant stage here. We have not been able to export software significantly. We need to be serious about that.

What is the range of IT services that Worldlink provides? How is it doing?

We provide a whole range of IT services. We are an ISP and therefore we deal with Internet and value-added services. We also provide space for hosting web pages and develop web pages. Recently we also started software development.

The number of Internet users in the country has been growing rapidly. What is the market share of Worldlink as an ISP?

We have not done any research so it will be hard to say what our exact markets share is. But it is indeed sizable. Internet use is growing in a steady pace, which could be the result of falling cost. The growth, however, cannot be termed as phenomenal.

There is a feeling that ISPs have mushroomed. Do you agree?

There are quite a few ISPs operating in town. That is good because more companies mean more competition and ultimately the clients will benefit. But sometimes what happens is that competition becomes so high that it goes out of track. Definitely, it takes some time for maturity to set in. Initially, it is difficult for companies to evolve good business policies and they end up having a tough time. But that will all settle down once the maturity comes.

There is controversy regarding the use of Voice Over Internet Protocol (VOIP) that provides for cheaper international telephone calls. What do you say?

I think the VOIP is a blessing. What is the harm in legalizing VOIP when it can provide people with cheaper international calls? I agree that the quality of VOIP is poorer compared to regular ISD calls. But let the people decide. If they want cheaper but relatively poorer quality of service, they will use VOIP. For the customers who demand quality, the regular ISD calls will be there. It makes no sense in controlling such service.

It is said that Nepal has good prospects in IT-enabled services like Medical Transcription, call centers, etc. Do you agree? Is Worldlink also involved in providing such services?

There are good prospects. We are also trying to enter this field. But we are waiting for the right time because these services demand special expertise, like trained employees. We still have to see how it unfolds. That is why we have not jumped into the field right now.

Following the recent terror attacks in the United States, there is a feeling that a global recession is going to set in which, among others, will also hit the IT sector. Will IT companies in Nepal be also affected by that?

Since we are not doing much business with the United States, it is not going to affect us directly. I don't think we are exporting software to the United States significantly to affect us badly. Even if we were exporting it, I don't think we will be affected because we are competing with other companies on prices. We can provide services at better price so it may not affect us that much.

How is the situation of instability and insecurity in the country affecting the IT sector?

I personally feel that as far as IT sector is concerned, we are not affected much. But I have heard that other sectors like schools and liquor businesses are having a tough time. But it has not been much of a threat to IT sector.

The government came up with an IT policy last year. How do you find that?

It is encouraging but they have not been able to implement it fully.

What is the major challenge for the IT sector?

We have to rope in more businesses from outside and generate more employment. The government should look into the IT policies of neighboring countries, know what kind of services they are providing to IT entrepreneurs and emulate them here. That would make it easier for Nepalese entrepreneurs to compete and attract more business from outside.