Over the last couple of years, Nepal has been developing as the ideal partner for outsourcing A/E projects. From its unique geopolitical position – situated between China and India but without a colonial past – this country has always been dependent on profound contacts with its neighboring countries. Steady relationships on trade and education with India were the result of these contacts. This produced a large work force of highly educated Nepalese CAD architects/engineers, most of who were trained at the well known institutions in Bangalore and Delhi or at local Nepalese universities with a high academic standard.

However, due to its disadvantaged geographical position and infrastructure and limited access to international financial markets, the Nepalese economy has not developed as fast as the other economic “tigers” in South and South-East Asia. Therefore the Nepalese labor costs are much lower than in the surrounding countries – even up to three times cheaper than India! – which creates ample opportunity for outsourcing labor intensive projects.

Unfair?  Not at all. To Nepal, the ICT world is essential in finding the way out of poverty. Outsourcing western projects at an acceptable local cost and salary level – of course keeping a close watch on labor conditions and personnel futures – is a “win-win” situation for both parties and is considered as the best available form of privatized development aid.

© GAP Nepal Pvt. Ltd., 2008