A digital skills action plan for Nepal

Estimates for Nepal’s software and IT services industry’s annual revenues range from $200 million to $1 billion. The sector is ideal for exports–IT services can be easily sold across borders, capital expenditure needs are low, and demand is globally ubiquitous and growing. A vital element for growth and higher export revenues in the sector is a robust talent pool and regular upskilling of that pool. Technology changes rapidly, therefore, skilling and reskilling is a constant. In fact, conversations with industry players indicate that the skills shortage in Nepal’s local ecosystem is such that even young employees can command a 100-200 percent hike when they switch jobs. This is good for the employee in the short-term but is not healthy for the industry. While Nepali companies can tap into regional and global talent pools to solve immediate human capital constraints–hiring from South Asia, the African continent, Latin America, or Eastern Europe–more should be done to improve the local talent pool for sustainable development. The government, in partnership with the private sector and development partners, can develop and implement a digital skills action plan. Important pillars of this action plan are: rolling out accredited digital training programs, building closer industry partnerships, and improving access to training and opportunities. This will have a profound impact on creating and providing jobs for more Nepalis. Vocational programs

Nepal has a population with an average age under 25 years and they can rapidly upskill to integrate into the global digital value chain. About 50 lakhs students took the SEE (10th grade) examinations in 2022. Even if only 20 percent develop industry-relevant digital skills, they can boost our software and IT industry, currently estimated to employ less than 100,000 people. A vocational component at the secondary level—a technical SEE or a technical +2 level course—can expand the talent pipeline and sensitize students to a global industry at an earlier age.

The software and IT industry does need a broad range of basic and advanced digital skills. Service exporters in countries like Bangladesh, the Philippines and Indonesia utilize a much broader array of digital skill sets in job roles such as sales associates, account managers, graphic designers, marketing specialists, customer service representatives, financial advisors, and social media managers.  Vocational programs ranging from a couple of weeks to a few months could fill a vital gap to supply the needed workforce in Nepal. Nepal needs more software engineers and project managers, but not everyone needs and wants a 4-year college degree to work in the software and IT services industry. Intensive 6-month vocational courses that teach students specific tools, such as JavaScript or SQL, can provide a higher return on investment for the students as well as employers. Industry partnerships Close collaboration between the public and private sectors, and academia is vital for a digital skills action plan to work. This is because of the fast-changing nature of the industry as it relates to skills and demand. Nepal’s IT companies are already building such partnerships: Fusemachines has partnered with Kathmandu University to promote Artificial Intelligence in curricula; Deerhold Ltd sources its employees extensively from its relationship with Deerwalk Institute of Technology; and Leapfrog Technology has an internal learning academy and strong emphasis on internships and apprenticeships. Many other local companies are also building such partnerships. Such lateral partnerships are needed with government bodies as well. Private companies have recently come together to establish a software association (Nepal Association of Software & IT Services Companies—NASIT) to advocate appropriate policy. NASIT identifies talent development as a key pillar of work and could serve as a key stakeholder in this conversation, along with other organizations. Government-academia-civil society roundtables can inform and support implementation of a digital skills action plan. Such roundtables would provide policymakers and academia with important insights into the nature and future of the digital industry. Local industry players can inform academic and public sector institutions on what demand exists—in terms of quality and quality—in verticals for IT services where Nepal can compete globally. More industry meeting platforms are needed. Industry interaction and collaboration events such as hackathons, meetups, or other events that support and promote learning and upskilling create much-needed public benefit and social good. Private companies, wanting to do more of such industry events, need more support to maintain platforms to regularize meetups and learning events. Public support for platforms will be vital in encouraging industry linkages, especially with government schools and universities in cities outside of Kathmandu. Better Access  A digital skills action plan should prioritize equity to ensure that the digital opportunity in Nepal is inclusive. Interventions of a digital skills action plan, therefore, must ensure that people have access to content, facilities, and services for career development. There is a lot of content and learning material freely available on the internet, and there is no need to reinvent the wheel. To enable more people across Nepal to learn and pick up digital skills, it is important to ensure that such materials are accessible to as many people as possible and as cheaply as possible. Hardware solutions means that Nepalis, especially those that are poorer and outside of core cities, need access to cheap mobile devices and internet services. More schools, TVET training institutes, and colleges also need to be linked with reliable broadband connections. The hardware agenda is important because of low device penetration outside of cities. Various government bodies have already helped build computer labs in government schools, yet the efficacy of these labs and hardware-based programs is unclear. Such efforts need to be strengthened, accompanied by strong frameworks to assess efficacy. Software solutions include access to high-quality and accessible training programs—TVET programs, coding bootcamps, or other digital skills bootcamps—and mentorship networks. There is a lot of content and learning materials freely available on the internet already and an agile solution would enable access to this online content. Basic English language courses, for example, can be very effective because much of the digital world operates in English. As a starting point, support may be extended to establish computer clubs across schools and colleges in the country. Each school or college with a computer club can then come together under a national-level mentorship network. These clubs and mentorship networks can, in turn, help improve the use of technologies in the classroom itself. Ultimately, mentorship networks should allow students to build and visualize their careers and career roadmaps. A Nepali student’s educational and professional journey is fragmented. Such fragmentation is likely to continue as newer technologies disrupt traditional industries and the ways people work. Career guidance roadmaps, tools, and counseling support may, therefore, be as important as teaching hard skills. Conclusion Nepal will benefit from a digital skill agenda that will fuel an export-based software and IT services industry. This will produce strong and deep spillover impacts on local digital transformation as well. Key policy interventions for a digital skills plan include building a vocational education program starting from the SEE level up, fostering industry collaborations to make policymaking more responsive, and improving access to training programs and job opportunities. The government, in partnership with the private sector and development partners, needs to develop and implement a digital skills action plan. The author is a Senior Fellow with the Nepal Economic Forum and leads the Digital Chautari, a platform to facilitate conversations on creating a Digital Nepal.