Nepal, the top of the world – a spiritual destination. What about an outsourcing one?
Everybody knows that the world’s top Outsourcing destination is represented by India. Furthermore, the entire continent seemed to bloom in the last few years in term of BPO centers, Outsourcing companies and processes that have been relocated in Asian countries ( such as the Philippines or Indonesia ).
But what about a small country, North of India, bordering the Himalayas? Nepal is world known as a more spiritual destination capable of attracting tourists for its wonderful and breathtaking landscapes. Nevertheless, this state has developed and continues to do so in other domains apart from tourism as well: Business process outsourcing ( BPO ) is not new in Nepal. It’s been almost a decade since the domestic IT sector saw the emergence of BPO firms.
Since then, the sector is growing, albeit slowly. Although exact data is hard to find, it is estimated there are over 200 large and small BPO companies operating in Nepal, offering employment to more than 3,000 individuals. Analysts forecast the global BPO market will be worth $93.4 billion in 2015, up from $71.92 billion in 2010, with India, China and the Philippines being the leading BPO hubs.
Nepal’s main disadvantage, however, is the lack of support received in this sector by the Government – as they are more focused on the exports of products. Of course, we have to admit that this particular line of business is still at its very beginnings in Nepal ( compared to countries such as India, China or the Philippines). But the competition has already intensified within the country among the outsources.
Mostly, software outsourcing firms are paid on hourly, monthly or project basis, and the pay starts from $10-15 per hour and goes beyond $5,000 per project, depending on the nature of the project. What makes the outsourcing business worth while in Nepal is the fact that international companies can save up to 70 percent of labor costs compared to their home countries.
Because they don’t receive a support from the Government and they experience a lack of proper legal framework, many companies in Nepal register as Indian enterprises because it’s easier to work and earn money under this regime.
All in all, with a little help and goodwill, this country could develop and overcome the obstacles it now faces and could became, as all its neighbors , an important Outsourcing destination in Asia!