'Unhealthy competition hindering growth of ICT industry'
KATHMANDU, Dec 17: Software developers have pointed out unhealthy competition amongst them as the major challenge facing software and BPO (Business Process Outsourcing) in the country.
Participants of a talk program organized by Computer Association of Nepal (CAN) on Sunday also said many developers were running the business illegally, which was discouraging the registered companies and eventually promoting unhealthy competition in the market.
The ICT entrepreneurs also stressed the need for bridging the gap between job market and academic excellence in order to develop Nepal as an alternative destination for software development and BPO.
“Cheaper human resource and high skilled professionals, among others, are our strength. Unfortunately, we are not being able to cash it,” said Abhijit Gupta, managing director of Young Minds Creation.
According to the participants, labor cost in Nepal is 35 percent cheaper than India, which is one the most popular destinations for outsourcing.
“Lack of committed professionals is another big problem. Some companies poach professionals from other developers in the middle of a project, affecting their work progress. This hampers goodwill of the country in international market,” added Gupta.
CAN is working toward developing Nepal as a center for digital hub particularly in software development.
“There is a lack of branding exercise and effective marketing among Nepali software developers,” Biplab Man Singh, former president of CAN, said. Commenting on ongoing brain-drain of ICT professionals, Singh said: “We should be able to Nepali ICT professionals, who are working abroad, back to the country with capital and technology.”
Singh also said Nepali ICT industries can absorb only around 10 percent of professionals graduating from various ICT colleges in the country.
Participants also called on CAN to discourage software companies operating without due registration. “Institutions like CAN should keep tabs on such issues,” Amrit Bahadur Thapa of Mazda International said.