Ewan Byte Team
Software Development Experts
From a handful of outsourcing firms to a real industry
Twenty years ago Nepal’s IT sector was a few web shops and outsourcing firms in Kathmandu. Today software and IT services are one of the country’s fastest-growing exports, digital payments are part of daily life, and capable software companies operate well outside the capital.
How the industry grew
- 2000s: small firms doing web development and outsourced work for foreign clients.
- 2010s: cheaper mobile data, the first digital wallets, and larger engineering centres for international companies.
- 2020s: digital payments, online shopping and ride-hailing become mainstream, and remote work connects Nepali developers to employers worldwide.
IT services as an export
A widely cited 2023 study by the Institute for Integrated Development Studies estimated Nepal’s IT service exports at over half a billion US dollars a year, earned by companies and tens of thousands of freelancers. The exact figure is debated, but the direction is clear: software is now a meaningful export for the country.
Who makes up the ecosystem
- Fintech: wallets and payment networks such as eSewa, Khalti and Fonepay, and QR payments in ordinary shops.
- Engineering centres: large teams building products for US, European and Australian companies.
- Consumer apps: e-commerce, food delivery and ride-hailing.
- Software companies and agencies: building websites, apps and business systems for local and foreign clients. See our overview of software companies in Nepal.
- Colleges and communities: engineering and IT programmes, developer meetups and hackathons.
Growth outside Kathmandu
Reliable electricity and fibre internet have reached most cities, so software teams no longer need to be in the capital. Companies now operate from Butwal, Pokhara, Chitwan, Biratnagar and other cities, closer to the local businesses they serve. Ewan Byte works from Manigram, Tilottama, in Rupandehi.
What still holds the sector back
- Brain drain: many experienced developers move abroad.
- Payments: receiving and sending money internationally is harder than in most countries, which complicates subscriptions and foreign investment.
- Funding: venture capital is limited, so most startups grow on revenue.
- A small home market: products built only for Nepal have a low ceiling.
- Regulation: rules often lag behind technology; cryptocurrency, for example, is banned.
What this means for businesses
For a Nepali business, it means good software no longer has to be imported or bought from Kathmandu. For a foreign company, it means an English-speaking engineering talent pool at competitive cost. If you are weighing that up, read why to choose a Nepali software company, and when not to.
