Among the lesser noticed effects of globalization is outsourcing, which is gradually changing the face of least developed economies. Developed countries have been outsourcing everything from clothes, food, electronic parts, to software, from less developed countries because the labor is much cheaper here.
Many companies even outsource their customer service departments offshore, and consumers in western countries calling in to complain about their products are often surprised to hear unfamiliar accents over the phone. [break]
As a least developed country, Nepal is no exception to the trend. The software sector in Nepal has been booming as Nepali companies make software for global organizations.
Nepali youngsters’ skill in software has grown, as is evidenced by a plethora of Nepali made software and apps—including calendars, games, maps, date converters and other utilities—flood the market.
While the popularity and usage of these software increase, Nepali software industry’s scope has similarly grown, with the official estimates of CAN (Computer Association of Nepal) putting it at three billion per year. Even until a few years, the outsourcing trend had only penetrated India. But now, the lower wages in Nepal as compared to India (10 dollars per hour in Nepal as compared to 16 in India) have attracted many firms to Nepal.
Today, education and skills learned at home can open the doors to a huge worldwide market. People in every corner of the world can be a part of the global software industry. Several other factors have aided this phenomenon, including the decreasing cost of hardware which made it accessible beyond the developed world, and the significantly lower cost of labor in the developing world. Cheap internet connectivity means that people from across the world can connect and coordinate in real time though voice and video conferences.
Nepali youth have an added advantage of speaking English, which becomes very useful in the global market. For Nepali youngsters, this is an opportunity. If Nepali youth can cash in on it, they have much to gain. A thriving software industry in the country has the potential to stop the exodus of youth who go abroad in search of education or employment. We will stop losing our pool of talent if they have enough incentive to stay home, which will ultimately add to Nepal’s own pool of experts in the field.
As in India, where the software boom had ushered in a rapid change in lifestyle for a large number of educated youth, Nepali youth have the chance to improve their lifestyles. And needless to say, all such activities will boost our economy.
As Thomas Friedman famously stated in his book The world is Flat, the playing field is now becoming more level, with individuals in every part of the globe having the chance to compete in the global workforce. In the globalized world, this is one of the many lucrative avenues for Nepali youth to explore their talents, prove themselves, as well as to earn wealth and contribute to the country’s prosperity.
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