IT Services - Nepal

Nepal

Revenue in the IT Services market is projected to reach US$259.00m in 2024.
IT Outsourcing dominates the market with a projected market volume of US$93.08m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 9.28%, resulting in a market volume of US$403.70m by 2029.
The average Spend per Employee in the IT Services market is projected to reach US$27.80 in 2024.
In global comparison, most revenue will be generated in the United States (US$522.00bn in 2024).

Key regions: United States, China, India, Japan, Germany

Definition:
The IT Services market encompasses a wide range of services used by organizations to create, manage, and deliver information, and it includes services that provide assistance with various other business functions. The primary goal of IT services is to ensure that information technology infrastructure, applications, and systems are effectively implemented, operated, and optimized to support an organization's business objectives and requirements. The specific range of services offered may vary depending on the service provider and the client's requirements.

Structure:

IT Services contains four distinct markets that are based on different services:

IT Consulting & Implementation covers advisory services that help businesses evaluate their technology strategies and align them with their business strategies or internal processes.
Business Process Outsourcing (BPO) refers to the transfer of entire business processes or individual activities from a company to a third party and is often IT based. BPO covers a wide variety of business processes, usually either in the back office (e.g., human resources) or in the front office (e.g., customer service in call centers).
IT Outsourcing refers to the external contracting of all IT-related services instead of relying on company-owned resources. In an IT context, these activities include IT administration, IT application, and web hosting services.
The Other IT Services market covers revenues for areas that are not specifically mentioned in the other markets, such as system integration, software installation and support, and IT education and training.

Additional Information:

The IT Services market comprises revenues, revenue change, average spend per employee, and a list of the key players in the market and their consolidated revenues. Market values represent revenues that are generated by primary vendors either directly or through distribution channels at the manufacturer price level (excluding VAT). Reported market revenues include spending by enterprises (B2B) and governments (B2G). Detailed definitions of each market can be found on the respective page where the market data is displayed. Key players in the market include IBM, Cognizant, Hewlett Packard Enterprise, and TCS.

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Market

Region

Region comparison

Currency

Analyst Opinion

The IT Services market in Nepal has been showing promising growth in recent years.

Customer preferences: Nepal has a young population that is increasingly tech-savvy and connected to the internet. This has led to a growing demand for IT services, particularly in areas such as software development, web design, and digital marketing. Nepalese businesses are also recognizing the importance of digital transformation to stay competitive and relevant in the global market.

Trends in the market: One of the key trends in the IT Services market in Nepal is the shift towards mobile-first solutions. With a high mobile penetration rate, businesses are looking to develop mobile applications and optimize their websites for mobile devices. Another trend is the adoption of cloud computing, which provides cost-effective and scalable solutions for businesses of all sizes. Additionally, there is a growing demand for cybersecurity services as businesses become more aware of the risks and threats associated with digital operations.

Local special circumstances: Nepal is a landlocked country with a challenging geography, which can make it difficult to access certain areas and provide reliable internet connectivity. However, the government has made significant investments in recent years to improve the country's digital infrastructure, including the installation of fiber optic cables and the expansion of 4G networks. Additionally, the country has a large pool of young, educated, and skilled IT professionals who can provide high-quality services at competitive rates.

Underlying macroeconomic factors: Nepal is one of the fastest-growing economies in South Asia, with a stable political environment and a focus on economic development. The country has a favorable business environment, with low labor costs and a relatively simple regulatory framework. Additionally, Nepal has a strategic location between India and China, two of the world's largest markets, which presents opportunities for businesses looking to expand their operations in the region. Overall, these macroeconomic factors provide a conducive environment for the growth of the IT Services market in Nepal.

Methodology

Data coverage:

The data encompasses B2G, B2B, and B2C enterprises. Figures are based on enterprises' technology spending on products, consulting, and outsourcing services.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players in the industry, Statista's primary research and surveys, and IT associations. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, and telecommunication. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing method is used based on the market data characteristics. The main drivers are the GDP and its sector composition, internet penetration, the level of digitization, and the attitude toward IT security.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.