Overview Of the IT Industry in Nepal

Apr 26, 2022
IT Industry Jobs Software Development Nepalese IT market

The IT industry in Nepal is one of the fastest-growing industries, second only to tourism. In a low-income, developing nation like Nepal with per capita annual income below $1200, Information Technology provides a valuable opportunity to generate growth, invite investments, and contribute significantly to the country's economy. 

The first IT companies in Nepal were limited to the Kathmandu Valley. Being the capital and the most populated city, Kathmandu offered both the needs and opportunities of any IT startup to thrive and reach new heights. However, with the emergence of IT outsourcing and remote working, IT industries have reached far and wide throughout the country. 

In this article, we will take a look at the current status of the IT industry in Nepal whilst shining light on its future. 

Total market & revenue

The Information, Communication, and Technology sector in Nepal contribute about 80 billion Nrs annually to the gross domestic product (GDP) of the country. ICT's contribution hence results in about 2.3 % of the total GDP. For the first time in Nepalese history, ICT has surpassed both broadcasting (0.48 %) and telecommunication (1.47%) sectors.  

The most promising statistic here however is the growth rate of ICT in Nepal. With more IT companies being registered, employment opportunities are popping up for the public to grab onto. Similarly, IT Jobs in Nepal average over 3X per capita income salary in Nepal. These all mean for someone looking to build a stable, high-paying, and sustainable career in Nepal, IT is the industry to be a part of in 2022 and beyond. 

Government policy

The Ministry of Communication and Information Technology (MOCIT) sets policies & standards for IT-related activities and industry in Nepal. Although not on par with some other South Asian countries, the ministry has made some effort in understanding the needs and prospects of the IT industry in Nepal. However, there is much change and support to be expected for the government to unlock the full potential that Nepal holds.

 The Government of Nepal has recognized IT and especially business process outsourcing (BPO) as one of the top export service sectors in Nepal. This led to a movement around a decade ago toward modernized businesses, which have seen their fair share of progress as of 2022. The future is bright and reassuring for the IT industry, as it continues to make a difference both in the economy of Nepal and the development of the Nepalese People.  

Outsourcing & Freelancing IT projects in Nepal 

Focusing on the past decade, both outsourcing and freelancing IT projects has significantly increased in Nepal. The prospect of lower development costs and access to a vast tech talent pool has made Nepal a perfect offshore outsourcing location for companies from Europe and America. Similarly, the Nepali time zone allows it to become a favorable alternative among other South Asian Countries (especially India & Pakistan).     

Similarly, Several IT companies have consolidated their business in this country. This has allowed them to develop a niche market for their products and created a new profile in the IT industry from Nepal. Verisk Health, Cloud Factory, Incessant Rain, D2Hawkeye, and Deerwalk are some of its examples. 

With the popularity of freelance platforms like Upwork, Fiverr, Toptal, Freelancer, & Hired, freelancing IT projects have been made simpler. The Nepalese Government providing clear guidelines and rules for freelancers in Nepal has encouraged talented individuals to take projects from both local & international clients. 

As of date, there are 250+ registered IT outsourcing companies and more than 6,000 BPO businesses in Nepal. Similarly, in the post-COVID period, the number of freelancers in the IT industry grew by a whopping 37%. IT Jobs alone contributed to over 20 % of the online workforce that we see today. The overall gig economy is expected to reach exponential heights by the year 2025. 

IT Jobs In Nepal

We have categorized the major IT jobs in Nepal, analyzing the number of active vacancies and potential industry forecast here. With this information, you can select the best pathway for your future as an IT employee or even consider a switch in it. 

  • Dev Jobs 

Software, Web, Mobile Application, & Cloud Development jobs take the major share of the job market in Nepal. It is also the most diverse and expanded sector among all other categories. With platforms like Hamro Dev Jobs individuals in different stages of their careers can find jobs and projects easily. 

  • Digital Marketing & Online Promotion 

As everything is going digital, marketing and advertising are too. Businesses are continuing to use digital marketing to be active and relevant, which has created a lot of jobs. Experts in SEO, SEM, SMM, Content Marketing, Email Marketing, PPC, and analysts make this entry the second of our categories. 

  • Networking 

Networking is the backbone of the IT industry. Networking professionals can enjoy stable and highly rewarding jobs in Nepal. These include Junior system and network officers to system engineers. Networking skills are also attractive to have in your CV, even if you are primarily pursuing another IT career. 

  • Database Admin & Analysts

Companies working on Data and intelligence are growing in Nepal. With this, there are multiple levels of jobs available, from Database Admins to full-fledged Analysts. Similarly, we predict most government sectors will soon have a large opening in this field too. 

  • IT Support

IT support vaguely means you have an opportunity to be the jackal of all trades and overlook IT of different non-it companies. Being an IT officer also opens the door to permanent government jobs for qualified individuals all over Nepal.   

  •  Others 

Other common IT jobs in Nepal include the fields of Cybersecurity, Bug Bounty, Training, Outreach, Content Creation, and more. Deserving Talents in different fields of IT can get remote jobs as well. 

Hiring Trends Of Local & Outsourcing Companies In Nepal 

When applying for an IT job in Nepal, your selection process is usually done with three major steps. These are not universal as most companies have their own additional steps or hiring managers have their personal preference on the hiring process. However, if you are looking to apply for an IT job in Nepal, be prepared for the following hiring trends/stages.

Step 1: Shortlisting Candidates

It is no surprise that you'll not be the only one applying for the opening. For established companies, the hiring officers can see over 20X more applicants for the vacancy. Your CV will be shortlisted after carefully comparing it with other applicants. These candidates then proceed toward the second step.  

Step 2: Interview & Demo Skill-test (Vice Versa)

You'll be contacted through email or phone to notify about the company's interest in your job application. For the next step, you might have to take a skill test or provide a demo to let them know you're the right candidate. Especially for dev jobs in Nepal, testing is done through phases as developers need to be capable. Hamro Dev Jobs assists you with training for this step too. 

Step 3: Second Interview & Selection

After your interview is complete, you'll get notified about your application status. If the company is happy with your skills and performance, you might have to pass the last hurdle in the second interview. This step is usually conducted to know your expectation and personality by hiring managers. If everything goes well you'll be selected for the job with a contract soon to follow. 

Differences In Working For Local Vs Outsourcing Companies in Nepal 

Working for a good company is helpful for your career as well as your personal growth. However, there are some differences between working for local vs outsourcing companies. Let's look at some major ones. 

1. Communication 

Communication and collaboration are the main differences here. For outsourcing companies, you might have to communicate with foreign clients in different time zones more often. Also, your communication skills are tested more in comparison to local companies. 

2. Work Culture 

Although local It companies are steadily following modern work culture, it might still be different. Outsourcing companies are performance-focused, and you'll get to experience western management & operation style in your workplace more.

3. Pay Range 

Outsourcing companies generally offer a better pay range. However, deserving individuals can expect similar remuneration while working for reputed local companies as well. 

4. Remote Working Options 

Outsourcing companies in Nepal are generally more relaxed with remote working. However, local It companies might require you to work from the office more due to the difference in tasks & clients. 

5. Experience and Skill Acknowledgment Outside Nepal 

If you are working in an offshore development team of a US based Software company, your experience might be valued more for international projects. However, the difference is not much if you're planning to continue working in Nepal.   

Most Prominent IT companies In Nepal as of 2022

1. Deerwalk Inc. 

  • Estd. date: 2010 AD
  • Works On: Software projects on health management, health analysis, & data management. Big Data and NoSQL solution to third-party administrators.
  • No of Employees: 100+ Nepal, 350+ Globally

2. Leapfrog Technology Inc. 

  • Estd. date: 2010 AD
  • Works On: Artificial intelligence and healthcare Solution. Excels in Mobile app development, Data engineering, Machine learning, & NLP.
  • No of Employees: 400+

3. Verisk Nepal. 

  • Estd. date: 2009 AD
  • Works On: Software development and product delivery services. Custom IT solution for the family of companies under Verisk Analytics. 
  • No of Employees: 300+

4. F1Soft International Pvt.

  • Estd. date: 2004 AD
  • Works On: Fintech company serving over 90% of the country’s financial institutions & banks with Software development, Banking system, & Digital wallet. 
  • No of Employees: 200+

5. Cotiviti Nepal Pvt. 

  • Estd. date: 2004 AD
  • Works On: Healthcare informatics solutions including Sanitary solutions, Software development, & Web development.
  • No of Employees: 500+

6. CloudFactory. 

  • Estd. date: 2010 AD
  • Works On: Data processing, Data labeling, and machine learning services for agriculture, e-commerce, finance, and healthcare industries. 
  • No of Employees: 2900+ (mostly remote)

7. LogPoint. 

  • Estd. date: 2012 AD
  • Works On: Security information and event management (SIEM), Cybersecurity, & Software development projects. 
  • No of Employees: 100+

8. Fusemachines Inc. 

  • Estd. date: 2013 AD
  • Works On: AI talent and education platform and services. Strategic consulting to develop AI products and services.
  • No of Employees: 240+


The current period might be one of the most promising times for the IT industry in Nepal. Local talents no longer have to go outside Nepal seeking a rewarding career. Entrepreneurs are finding investors and the growth of ICT in Nepal doesn't seem to slow down any time soon. We at Hamro Dev Jobs aim to make the process of hiring and applying for IT jobs in Nepal more efficient and easier. With our assistance, you can paint your bright future on the canvas and get the ideal software development job in Nepal without any compromise.