IT Scenario of Nepal

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IT Scenario of Nepal

• Rajib Subba
• ltrajib_at_nepalit.comgt

2
About myself
Dy. Chief, Communication Division, PHQ Naxal.
Secretary General, Computer Association of
Nepal. Paper IT HRD Polciy and Strategy Paper
for National Planning Commission, HMG,
2000. Publication Cyber Post. URL
WWW.NEPALIT.COM.
3
Computer Association of Nepal (CAN)

• Established in 1992
• National level Confederation of IT professionals,
  companies, other sectoral regional members,
  users, students
• Advising lobbying to the Government on key IT
  issues
• ActivitiesInfo-Tech, Seminars, TechTalks,
  Awareness programs etc.

4
Historical Perspective

• Start of Telecommunication 1914
• IBM 1401 for Population Census 1971
• Second Main Frame 1981
• National Computer Center (NCC) 1974
• Private Sectors involvement 1980s
• 1st FDI ltDSIgt 1983

5
Historical Perspective

• Proliferation of IT companies 1990s
• Electrical/Electronics Engg Course 90s
• Establishment of CAN 1992
• Computer Engineering Course 1994
• Email Services 1994
• Internet Services 1995

6
Historical Perspective

• Establishment of NTA 1997
• New Telecom Policy 1999
• Private VSAT Services 2000
• MoST IT Strengthening 2000
• IT Policy 2000
• IT Act in process

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Existing Status - Communications Infrastructure

• 1528 out of 3913 VDC have telephone service. By
  2002, at least 2 lines/ VDC.
• 50 demand of telephone services are met.
• Leased lines from PSTN, radio links and VSATs
  constitutes data comm. Network.
• 9 /12 ISPs with cumulative bandwidth of more than
  10 Mbps. 4 Cities have POP services available.
• Four private VSAT Network Providers.

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Existing Status - Human Resource Development

• Four Universities with annual intake of more than
  1500 students in IT alone
• 8000 students appear in SLC examination with
  computer science
• 200 schools offer computer courses
• 102 syllabus has also an optional computer
  science course
• Estimate of 1000 computer training institutes
  (some affiliated from India, Singapore, UK)

9
Existing Status - Domestic Computerization

• HMG
• Examination Processing
• School Information System
• Voters Registration Election Results
  Information
• Value Added Tax (VAT) Accounting System
• Criminal Record Information System
• Data Processing (Census, Surveys, Tourist
  Embarkation/Disembarkation etc.)
• Personnel Record System
• Financial Management System
• Land Information System etc

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Existing Status - Domestic Computerization

• Semi- Government
• Provident Fund
• Nepal Telecom (Billing, Customer Service, GL,
  Cable Network Planning)
• Nepal Electricity Authority (Billing, Personnel
  Records, Simulations, MIS etc)
• RNAC (Billing, Airlines Reservation etc.)
• Nepal Rastra Bank (Surveys, Offline Banking)

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Existing Status - Domestic Computerization

• Financial Sectors
• Banks
• State affiliated (NRB, RBB, ADB, NBL)
• JV Banks
• Finance Companies Cooperatives
• Insurance Companies

• Tourism Industry
• Hotel Management Systems
• Airlines Reservation System

• Industrial Business Enterprises
• Limited use in Accounting, Inventory, Sales

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Existing Status - Domestic Computerization

• Health
• Hospitals Nursing Homes ( Hospital Management
  System)

• Educational Institutions
• Examination Processing (TU, 102,Private Schools)
• Student Registrations, Fee Accounting, Class
  Scheduling in Private Schools

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Existing Status - Software Services Export

• In 1998, WB reported the possibility of annual
  export of US 1 billion in 15 - 20 years.
• IT Policy 2000 targets for RS 10 Billion by 2005
• Software and Service Joint-ventures with US and
  Japan.
• A number of export oriented SMEs for Software
  development and Services such as Back-office data
  entry, Map Digitization, Medical Transcription
  Call Centers established
• A number of web services for export purposes as
  well are also operating

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Notable Accomplishments

• Sizable and successful software like Banking,
  Healthcare and Airlines Systems have been
  developed here
• Development services have been provided to
  reputed companies like Toshiba,Oracle
• Mission critical projects like on-line medical
  transcriptions, call centers being established
• e-Commerce portals are developed here for US and
  Europe
• MM CD-ROM of Nepal has acclaimed International
  BEST Award

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Information Technology Human Resource Development
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Nepals endeavor in developing human resource

• First computer in 1971. About 15 people got
  trained.
• Establishment of NCC (National Computer Centre)
  in 1980. 2nd Main Frame computer. About 25 people
  got opportunities for higher education and
  training in foreign countries.
• Apple PC was introduced. Training unit at NCC
  around 1982.
• Simultaneously Private sector followed.
• DSI ltData Systems Internationalgt in 1984, 1st
  foreign investment in IT, trained some of its
  staff in the US.
• Technical education started in early 40s.
  Technical courses in Electrical Engineering in
  mid 60s.
• B.E. in Electronics and Electrical Engineering
  was started after 25 years by IOE ltInstitute of
  Engineeringgt.
• Kathmandu University, a private institution,
  started Computer Engineering in mid 90s and IOE
  (govt) in 1998/99. Bachelor level computer
  education by private sector by early 90s.

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IT HRD Scenario

• IT Academic/Training
• 4 Universities, 1500 plus intake _at_ Bachelor level
• No Masters course ltMCA, M.Sc., M. E.gt
• Almost all foreign educated graduates
• Optional subject in few High Schools
• Compulsory subject in few private schools
• Number of Private Training Institutes is about
  1000
• National, MNCs, and Franchisee

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IT HRD Scenario

• HR situation
• Higher Level - 1,000 Bachelor's and above
• Middle level - 3,000 Intermediate Computer
  Application
• Lower level - 10,000 from short term courses
• IT manpower produced so far
• Polytechnic 600
• Engineering 200
• National Computer Center 10,000 ltDTP/Diplomagt
• Private sector trained 50,000 plus
• Foreign educated Considerable number

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IT HRD Scenario

• Almost 65 of the software professionals employed
  in the industry were in software development and
  operations, 3 in domain expertise development,
  13 in marketing and relationship development,
  15 in client support and 4 in other activities.
  
• The number of software professionals employed
  have increased by about 25. This includes
  software professionals in non-commercial
  organization as well as software development
  units in user organization.
• Skills in demand Business applications of
  software development, E-Commerce, Java, OOPs,
  Client-Server, Internet, Telecommunication/Network
  ing, RDBMS, Project Management, quality
  assurance, technical writing etc.

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Why IT HRD?Importance of IT for Nepal

• For Nepal, the IT sector may provide an
  opportunity to overcome the geographical
  disabilities. IT might enable Nepal to achieve
  the goal of being a prosperous and self-reliant
  nation.
• Upside
• The potential of the IT industrys high capacity
  to generate wealth, foreign exchange and
  employment has already caught the imagination of
  Nepals businessmen, citizens, economists,
  bureaucracy, media and politicians.
• Potential
• Over 18 Lakh lt18,000,000gt IT job opportunities
  worldwide by the end of the year 2005.

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Why IT HRD?Importance of IT for Nepal

• Job is the mantra all the time.
• Growing demand of IT professionals worldwide.
• Nepal gets advantage vis-à-vis Indian
  counterparts.
• Fastest Growing career opportunities world wide.
• E-Commerce/Internet has created new
  opportunities.
• Size doesn't matter for IT advantage.
• Rebranding
• Norths Technology - Souths Resources

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Constraints in HRD

• IT HRD Training Not recognized as SERVICE
  INDUSTRY
• Academic and non-academic IT Less opportunity
  for IT higher studies. Lack of Proper Faculties
  Limited Faculties with Masters Degree Sole
  Doctorate Degree Faculty. Absence of TOT courses.
• Computer literacy program Not compulsory till
  now.
• Brain Drain Reversing the brain drain is the
  most important issue. May be countered by
  producing large pool of IT professionals.
• Financial constraints Tax, Venture capital, soft
  loans.
• Lack of one Window Policy
• IT Park Yet to take off
• Quality Control Curricula and effectiveness of
  their programs are in a questionable form.
  Problem of Monitoring of Curriculum.

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Constraints in HRD

• Promote Internet Lack of universal access to
  Global Knowledge
• Why promote Internet for education?
• for distance learning -student and teacher are
  connected by technology rather than the classroom
• promotes education and learning by reducing costs
  and improving the effectiveness of content
  delivery
• improves effectiveness of distance learning
• provides the network for life-long learning
• allows individuals to participate in research

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National Vision

• Human capital in information age/ Knowledge based
  society
• Key Asset PEOPLE. For Nepal, Human resource is
  the real asset because IT is the Knowledge
  Industry.
• Computer Education for all
• Universal access to information
• Center of Excellence
• Model Agency for Digital Age

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• The dream Center of Excellence
• IITs of India.
• UEC Tokyo, Japan
• AIT of Bangkok, Thailand
• For individuals and countries, education is the
  key to creating, adapting and spreading
  knowledge.
• Quality human resource contributes to a countrys
  ability to compete and trade in international
  markets, and to innovate, development of skills,
  continuous learning and sustainable employment.

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• The dream Center of Excellence
• Institute of Engineering ltIOEgt
• Established in 1972, Popularly know as IOE.
• Among the top 10 engineering colleges in Asia
  according to AIT report.
• Third best engineering school based on the
  performance of AITs Masters level students in
  2000.
• Annual intake capacity in 1999/2000
• B.E.
• Electronics 48
• Computer 24
• Electrical 48
• Polytechnic
• Electronics 48
• Electrical 192
• Source IOE/TU, Profile-99/2000

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Center of Excellence

• School of Engineering/KU would be another
  promising example.
• KU established in 1992 by private sector.
• No of student currently enrolled ltundergradgt
• Computer Engineering 24
• Electronics and Electrical 24
• Source Annual Report of University Grant
  Commission-98/99
• Other engineering colleges have yet to show their
  performance in the market.
• IT Training National Brand?CSE.

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IT Policy 2000
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IT Policy 2000

• Vision
• To place Nepal on the global map of information
  technology within the next five years.
• Objectives
• To make information technology accessible to the
  general public and increase employment through
  this means.
• To build a knowledgebased society.
• To establish knowledgebased industries.

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IT Policy 2000 Key Strategies

• Private sector participation
• HMG only as Promoter, Facilitator Regulator
• Human resource development IT Education
• Domestic foreign investments promotion
• IT use in HMG, public, private sectors and rural
  areas
• Data communication infrastructure even to rural
  areas
• Promotion of IT industry of Nepal in the world

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IT Policy 2000 - Key Policies

• IT as Priority Sector
• One window policy NITC
• Facilitating private sector investments
• Development of rural Internet facilities and
  facilitation of e-commerce, e-education, e-health
  and technology transfers
• Help IT Education Training

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IT Policy 2000 - Key Policies

• All HMGs operations computerization and
  information dissemination through websites
• IT Research Developments
• Venture capital fund
• Computer education from School
• Cyber Laws

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IT Policy 2000 Key Action PlansInfrastructure
Development

• Information Super Highway North-South Highways
  the use of broadband information network
• IT Park in Kavre by HMG other parks (private)
• 1 Custom duty for 5 years
• Establishments of Internet Nodes in all regions
  by 2058/59 in all districts by 2060/61

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IT Policy 2000 - Key Action PlansIT
Proliferation

• E-Governance
• Computerization and connection to Internet in
  HMG offices with 3 years plan
• Web-sites of all offices up to district levels
  within 1 year
• Requirement of computers knowledge for all
  Government new recruitment and promotion
• Creation of Nepali script contents in Internet
• Information Technology Officer for each HMG
  Offices
• Possibilities for Point-to-Point Voice
  communication

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IT Policy 2000 - Key Action PlansE-commerce
others

• Promote e-commerce
• Infrastructure development for Tele-medicine,
  Distant Learning, Tele-Processing, E-commerce
• Introduce implement IPR Laws
• Recognition of software services export

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IT Policy 2000 - Institutions

• Establishment of National IT Development Council
  (NITDC) chaired by PM
• National Information Technology Coordination
  Committee chaired by Minister MOST for HRD
• National Information Technology Center
• HMGs Computerization, content development, Data
  Bank
• Secretariat to NITDC, NITCC
• IT Standardization, Regulation
• IT Park Development Committee

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IT Policy 2000 - Key Action PlansHuman Resource
Development

• Help to University Level Computer Education
• Computer Education for all till 2010
• IT in Education
• Compulsory computer knowledge for new teachers
  recruitment and distant computer education for
  exiting teachers
• 4 Hours free internet service to public
  institutions by 2005.
• Provision of Government scholarships for
  high-level IT education

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HRD in IT Policy 2000

• Necessary facilities shall be supplied to the
  universities in the country and graduate- and
  postgraduate-level classes of international
  standard in computer science and computer
  engineering subjects shall be offered.
• A long-term programme with a slogan computer
  education to all by 2010 A.D. shall be
  formulated and computer education shall be taught
  as an optional subject in some public secondary
  schools from the coming academic year and shall
  be made a compulsory subject in phases.
• IT shall be used to improve the quality of
  education.
• The private sector shall be encouraged to prepare
  medium-level manpower required for the
  information technology sector. Assistance shall
  be provided to the private sector to set up
  institutions for teaching, research, and
  development of information technology in each
  development region.

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HRD in IT Policy

• The knowledge of computer shall be made
  compulsory to all newly-recruited teachers in
  phases so as to introduce computer education in
  schools and computer education shall also be
  provided to all in-service teachers in phases
  through distant education.
• Emphasis shall be given to providing computer
  education from the school level. Internet
  facility shall be made available free of cost to
  universities and public schools for four hours a
  day within the next five years to provide
  computer education in a systematic way.
• His Majestys Government shall provide
  scholarships to public and private sector
  technicians for higher study in information
  technology.
• Necessary scholarships shall be given to poor and
  deserving (diligent) students from remote areas
  to pursue higher studies in information
  technology.

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HRD in IT Policy

• Facilities
• One percent (1) customs duty shall be levied on
  hardware, software and all kinds of computer
  spare parts imported by training institutions
  related to information technology, albeit on the
  recommendation of the National Information
  Technology Centre on the basis of services
  rendered and the achievements of such
  institutions.
• As Nepali nationals working abroad can play an
  important role in the technology transfer and
  market promotion in this sector, they shall be
  encouraged to invest their foreign currency
  earnings in this sector.
• As software development services based on
  software are operated twenty-four hours, such
  services shall be declared essential services to
  guarantee regular production by employees working
  in the companies related to such services, and
  arrangements shall be made accordingly.

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IT HRD in IT Policy

• A National Information Technology Co-ordination
  Committee shall be constituted to carry out
  research on and develop information technology,
  develop manpower required for this sector and a
  curriculum for information technology, improve
  the quality of computer training operated by the
  private sector, ascertain the norms and monitor
  these and co-ordinate such activities of
  establishing relations with foreign educational
  institutions.

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IT Policy 2000 - Facilities

• 1 custom duty for training institutes
• IT Services Industry as essential services
• Venture capital fund of Rs 10 Crore
• S/W as expenses H/W with 2 yrs Accl.
  Depreciation
• Additional .5 export tax for IT Fund
• Encouragement for NRNs investment in Nepal

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What next ?

• Implementation is the key to success
• Whatever good things specified in VI-IX plans
  have never been implemented
• HMG should implement all the action plan
  specified in the policy with special ordinance,
  if necessary
• Establishment of the institutions, good plan
  programs and budget to implement will be the key
• MOST should be very selective in appointing
  people to new institutions and there should be
  special provisions for the remuneration. If
  necessary, we should also be looking forward to
  bring IT visionaries, Good Managers not only from
  Nepal but abroad (NRNs, etc.)

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What is Missing?

• IT Policy 2000 has not implemented a lot of
  things proposed by subcommittees preparing 6
  position papers on IT in Nepal
• Facilities provided is not competitive enough
  with respect to other countries
• Facilities extended to IT Park should also be
  provided to Virtual IT Park
• No action plans specified for Nepals promotion
  to Global IT Scenario
• NITC should implement HMGs computerization
  effort through private sectors and not do the
  work itself
• Enactment of Cyber laws

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References

• Information Communication Infrastructure (Bhesh
  R. Kanel Subash Bajracharya, 2000)
• Human Resource Development (Prof Chabi R. Gajurel
  Rajib Subba, 2000)
• E-commerce in Nepal (Manohar Bhattarai, 2000)
• Software Production Application (Suresh Regmi,
  2000)
• IT Policy 2000
• Computerization Status of Nepal (ITPF)
• CIA- The World Factbook 2000-Nepal
• Statistical Pocket Book of Nepal (CBS, 1998)

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Thank you
ltemailrajib_at_nepalit.comgt