The technology, media and telecommunications sector comprising internet, telephone, mobile, IT-enabled services (ITeS) and business process outsourcing (BPO), is a fast-growing market in Nepal.
As of July 2021, Nepal has a mobile penetration of 142% of the population while internet users stand at 90.56%. Mobile internet users comprise 65.6% of the total internet user population. This sector has high development impact due to its potential for direct skilled job creation, transformation in processes that brings efficiency and resiliency in businesses, and export of services to the international market.
In recent years, an emergent digital entrepreneurship ecosystem has nurtured many IT and IT-enabled companies which is supported by the government initiatives such as Digital Nepal Framework to promote digitization in all the sectors.
Nepal has a distinct advantage in this sector due to the availability of skilled and experienced talents in IT and computer engineering and the demand for IT services locally and internationally across multiple market verticals with numerous use cases. Tech-enabled digital transformations can provide benefits such as access to finance to the unbanked through fintech, transform businesses through data analytics and automation and introduce innovative and disruptive business models to provide quick and affordable services to the people. There are also opportunities of consolidation, to provide a one-stop-shop that is built in a deeply integrated ecosystem to increase the lifetime value of customers by building a portfolio of ancillary services.
Dolma sees a growing demand for investment and emergence of innovative models and solutions in digital payment, e-commerce, information technology enabled services, and internet service provision offering rapid growth both as the domestic market scales and through exports.