The outsourcing sector in Nepal is experiencing a robust upward trend.
- Growth and Investment: In the fiscal year 2024/25, about 124 new IT, software development, and BPO companies were registered. Foreign companies such as Deloitte, IBM, Fusemachines, and CloudFactory have established operations, leveraging Nepal’s skilled IT talent.
- Industry Highlights: The sector offers low labor costs and no minimum investment requirements for IT startups. The software market is growing at about 9.66% annually.
- Regulatory Environment: The Ministry of Labor has specified conditions and licensing requirements to ensure compliance with labor laws.
- Challenges: Despite growth, the sector faces challenges like a relatively small domestic market and geographic/logistical limitations.