"Youth can be brought back from abroad by making proper laws and infrastructure related to IT"

Like other industries, IT entrepreneurs are demanding that the government should provide electricity, internet connectivity, concessions in banking loans and stable policies in the information technology sector. Krishna Acharya of Kantipur with cyber security expert Vivek Rana Krishna Acharya about the possibilities and problems of the information technology sector, government capacity, problems and policy solutions, Sajna Baral and Seema Tamang's conversation

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It is being debated that there is increased potential in the Information Technology (IT) industry amid a slowdown in the overall economy and a decline in the morale of the private sector. How to consider only the IT sector to be in good condition?

When the overall economy is good, the exports of information technology sector are good. Exports also decrease when the economy declines. Therefore, it is necessary to look at all areas from the perspective of economic potential. Outsourcing business is on the decline lately due to the Corona epidemic. However, its demand was high during Corona.

Every country has focused on how to protect businesses in the beginning after their economy collapsed. Therefore, the work coming to Nepal has also decreased. Due to the decrease in exports internationally, the export of the IT sector has not been able to meet its potential. Since the work has not come, it has not been used according to its capacity. No company of any country says that they will give only to Nepal. Sending work to the country where the price is lower and the company is more profitable.

He said that the IT sector market has decreased comparatively with the economy. Is there room for improvement in this area? There are many reasons why a

business is a good place to start a business. First of all, how strong the regulatory body is, how many opportunities there are for foreign direct investment. But we see where the low investment comes with a lot of benefits. The financial technology (fintech) industry needs cash. For example, if you have to buy a system worth 50 million, the company should have the ability to invest 50 million immediately. If 5000 workers have to be hired, that capacity should be in the organization.

cyber security expert Vivek Rana . Photo: Angad Dhakal/Kantipur

So far, very few policies have been implemented. The upcoming information technology and cyber security laws have provided more stringent policies than needed. For example, permission should be obtained to set up a data center, where to place it should also be permitted. Open format should be readable and auditable at any time. When the government brings strict rules, foreign-invested outsourcing companies demand that 'after I have done the work by sending the data, send us the data for free'. Outsourcing companies say that it is not necessary to look at the government by keeping it in open format. After the government implements the open standard, it is necessary to keep our country's data in it. The cost of compliance increases. Outsourcing is not a highly regulated field. After so many strict rules, it is very difficult for foreign investment outsourcing companies to understand and work.

So, is the government trying to control fintech, software, hardware and more without regulating it?

The most regulated sector is banking. Fintech is viewed under banking. Fintech is therefore a semi-regulated sector. Not as strictly regulated as banks as a whole. At the same time, 37 Payment Service Operators (PSOs) and Payment Service Providers (PSPs) have come. But not everyone got a business. At one time all insurance companies were licensed. Unable to do business and when unhealthy competition started, the company started merging.

Even under fintech, PSPs and PSOs have reached the point of merging. Hardly 4/5 fintech companies can survive. Others have had difficulty. Even in the context of e-commerce, local companies do not know the 'know' and 'how'. That requires business acumen, it takes time. Until then, local companies and institutions cannot survive and go into losses and close down. The government has not been able to cover the issue of how to protect them in the act/law. The government has left it to permitting, revenue collection and open competition. The government has put it in the situation of either drowning or floating.

What should the government do in the overall IT sector?

Nepal Rastra Bank's regulation of the digital system in the early days was fine. Data privacy is paramount in a digital agency. However, many Acts/Laws regarding this are yet to come. Even though data will flow through the fintech industry, banks are looking at it with skepticism. However, banks cannot function without the fintech industry. The fintech industry is also trying to do everything by itself rather than focusing on one area. The question of what is the main work or application of a fintech company has started to arise due to starting to go to an agency. When a single company starts doing all the work, the monopoly of that company increases. Therefore, there is confusion in the banking sector that there is a monopoly in the fintech sector.

The government should bring the digital industry and others within the scope of proper regulation. In many places in the fintech industry, customer data is not visible. Even if the transaction is going on, you cannot see whose data is going where. In the end, if the account does not match, the details are viewed only with permission. As open trading is taking place. Such work cannot be done outside. As technology enters India, it is given time to innovate. After the technology is innovated, the law comes. But the law comes much behind the technology in Nepal. By then a lot of investment has already been made. As it has direct impact on the society, the government should control the technology only to the right extent. After the impact of technology on the society, the subject of social value, how technology is viewed is very important.

Out of the 8 sectors under the Digital Nepal Framework, fintech seems to be the only one taking the lead, isn't it?

In terms of agriculture, government subsidies are necessary to implement agritech. Farmers could not pay due to lack of government subsidy. There is a trend of low and short term investment in Nepal. While working with low investment, the common and automated subject should be done manually ie by hand. There are seven steps to be followed to create a digital bank. However, there are only one or two systems in the banks of Nepal, the rest are being done manually. The main concept of digital is experience, where it cannot be experienced, it cannot be called digital.

When the banks create fintech and start providing services themselves, is fintech not sustainable?

The banking sector is starting to panic whether all customers will be taken away by digital companies (fintech). Most banks have gone to the app model. Their focus is on buying and operating apps with fintechs. But only a few banks have paid attention to how the company handles customer data, how to distribute profits, how to develop the overall ecosystem. Banks should adopt a partnership model to work with fintech.

The fintech sector in the country has become expensive as the government does not allow cloud applications. One/one component of every application has to be developed by the software developer himself. While going to cloud application, it is enough to configure the already developed application. Even small applications are pre-configured when deploying to each bank. We don't have such a system, building multiple data centers leads to higher operating costs as multiple system configurations are required. So the faster the government lets fintech move to the cloud, the faster it will grow. One of the reasons why the fintech industry is not growing to its potential is because the government is not allowing it to move to the cloud.

It is expensive to create anything new and join the fintech industry at once. The cost of innovation is high in Nepal. Build a new application in India and add the India stack. Aadhaar card, birth registration, death registration are all done by him. You can run your services and applications on the highway made by the government. But we have to build a highway every time. A separate application should be made for each subject. The topic of making a stack from citizen apps has been in discussion for a long time.

The private sector is far ahead of the government in fintech. But the government agencies have not cooperated with the private sector. Few are benefiting as the government cooperates with only a limited number of people related to data exchange and apps. What kind of architecture should be used for fintech has not been discussed. India brought a platform where a small pan shop to Amazon could sell their products. Therefore, a common denominator should be found and a system should be made.

When the government is working in collaboration with the private sector, the government employees are saying that we could not work?

A person who studied in the field of information technology under the government agency. But they could not use it in practice. As everything went to an outsourcing model, the vendor began to take control. As the vendor company went to their services and requests, the government manpower could not grow and develop. Even now many systems are stuck in it. Government agencies and outsourcing companies should work together. Information technology in the government sector had to outsource the entire work to a vendor. Therefore, government policies, procedures and business processes should be clear. Since the system is working, it is necessary for people to think in the same way.

Lately, there has been hope towards the outsourcing sector. That is why they are saying IT for the reform of the economy. What are its chances?

Lately the demand for IT services is decreasing. Necessary but expensive. Earlier studies showed that the IT sector contributed 15 percent to the Gross Domestic Product (GDP) and 5.5 percent to foreign exchange. From one point of view, this figure is high and from another point of view, it is low. Many companies are still not registered in the country.

How many organizations work individually. If the external economy improves, more work will be outsourced. While some companies are cutting staff, some are growing. A company has cut up to 150 jobs because it can't bring in outsourcing jobs. It costs 10 dollars to make a software in Nepal and 15 dollars in other countries. So outsourcing happens in Nepal because of low cost, investment impact and opportunity. Nepali people get opportunities if they spend in Nepal. Investors also come to Nepal because it costs less to export software.

Is there a possibility that this industry can become a big hub that can export a lot of software if the necessary policies and infrastructure are made? Do we have such manpower or not?

potential exists not only in IT but in every sector. Policy reforms alone will not solve the industry's situation. The value chain of outsourcing has also declined in other countries. I don't believe IT sector will boom if only tax rate is reduced. However, it is an area of ​​potential. A lot of IT engineers have been produced in recent times. They are likely to be channelized into the right company and outsourcing jobs.

The IT sector requires talent, education and infrastructure. After the new rules, the infrastructure with the outside companies will also have to be registered according to the rules. An outsourcing company builds realtime online infrastructure while working. They are watching you sit here and work. If it is an export-based industry, the government must provide some subsidy. Their requests and demands had to be fast-tracked. Even when bringing a new act/law, consultation and discussion should be done with the concerned sector. Tax exemption should also be given. Because Nepal has to compete with other countries. Other countries are giving subsidies and concessions. Vietnam already did this 5 years ago. Today its IT sector is booming.

People from any country are ready to come if they can give good money by making laws and infrastructure. Nepal has sufficient manpower in the fields of low level coding, low level integration, documentation, data science etc. If a company's main business is in AI and computer vision, it calls experts in that field and trains its employees. Even if we can get a small amount of profit, it can be sustainable for our economy.

Nepalis are also working abroad in the technical field. Naturally, the rate of young people going abroad will decrease if they feel that they have contributed to opportunities in Nepal. Such people can be employed in local industries. Many young people can be prevented from abroad by making the ability of the IT region by properly amending the IT area. In 2009/20. Many of India entered into India by developing in their own country. Many returned to India from the United States that they had to do something in their own country. You should be able to create such an environment in Nepal. What is the internal market in

IT area? The buyers are limited to the

Internal market. Competition is intense as a limited customer service. The question that supports 20,000 people on other places, asks how many applications are the value of the application in Nepal. The

is unable to compare the valley of the apps of the apps. The same is the same in other industries. Because the Industry is not clear, the company has begun attention to how to make it cheaper instead of good. IT's price is opaque and obscure.

IT is not discussed about using efficiency and productivity and it is easy to work. It is said that it will cost so much in the discussion. Extreme competition and price cuts are also adopted as well in IT's market. For years in the interior markets, the company working for years, the company worked, has stopped increasing benefits. & Nbsp;

is being focused as software services and products in Nepal. Is there a possibility for hardware or not?

is not a hardware built in Nepal. About 15 years earlier, some companies fitting and selling hardways in the name of the local brand by importing hardways. Such companies and production were not sustainable. The imported branded computer could not compete with the price of the price. Software companies became a business trading business. Stretch-BREAK costs is to decide the price of costs, sales costs, to buy the middle profit and buy the rest of the necessary items. The software industry cannot run from such a mindset. Software Industry, who has surveyed all over the world, undergoing his 70 percent study research by researching its 70 percent study. Once selling software should be made in a businessman that will make money. Many companies have been investing 70 to 75 percent of profit in their own company for 10 years. Research, development and archivectures are spent in building.

cheap deals, Home Gr, and Home Gr Company are becoming closed. What is the reason they fail? Even if

is not immediately investment, many domestic companies are closed. The company should emphasize to make himself a competitiveness. International company investment of the drawers and engines with their core, entracted Nepal, so is going on. Eacles company should be able to complete 5 to 6 important criteria to be successful. For example: Ekramor Vene chain. The application was good but lozitic, Return Police, Billing, Customer Unbrowding was not comparatively good. Failed the indigenous startup when not to build stories-Break valley chains. Explanation does not come when asked how to get a business with the entrepreneurs in Nepal. However, even foreign investment companies are brought all together. Amazon and drawers looks like. The man works in the drawer while the machine logging works in Amazon. The refund there is easy, it is difficult for Nepal. Valu chain is a difficult subject. But if you can pay attention to the vault chain, domestic startup succeeds. Before conducting your business, you have to prepare for the successful business before it needs to be successful. Bijanenes are not competing, it is to compete with Veel Chain. There are examples set out not ready and causing business without getting ready to come and compete. If that is happening, the international company occupies the international company in the overall market? & NBSP; The state should be preserved by the state rather than on

. Otherwise the indigenous company exists, can be dominant of foreign investment companies. Because the companies from the outside have experienced, investment opportunities, also become liquidar and also a process. The same is true like Emmes like Ephrace can be made by a block. Only the names of the man change. That opportunity is with foreign investment companies. Not with the domestic company. The

internet is only anechettricane Canytivity Orintended Sequriari. The recent time is coming to Cyber. How is our respoons mechanism? The issues of

Cyber ​​security is in any country. The event of cyber security in IT and Finatk Industry is a little bigger. There is an obligation to work in a kind of close architect because he did not have gateways and platform. Wrong the arranging the security that you can do in the security is not supported by an architecture. NRB has also been looking for a pyment market strons to support within it. Disach by submitting workshearted and nbsp in terms of strengthening. What is the status of the

country's condition? Whether or not? The

System should be focused on how to pay attention to the System, which is a securerite, and what literacy is called the condition, what is the condition of the Bridge. However, digital literacy and digital awareness is two types of awareness. There are more digital awareness than digital literacy. Many organizations have worked in digital literacy. Investigated by digital literacy in Corporate social responsibility. Although more in urban areas, real access to rural areas has not been reached. In some parts of rural areas, it has not yet been able to reach an effective telecommunication service. & Nbsp; Irons related to the technology of the technology of

is growing. The reason for not knowing is not informed that it has been a chance to treat technology? & Nbsp;

employees, old people in government, the technology began to come new. Corruption is difficult to corruption in other places but it is easy on IT. Because the IT understands are very low, sellers involve the seller. They have by bypassing the International Valley Chain by bypassing his local Valu chain. If you want to buy an object through the local company, the local company is involved. But if you go straight to international companies, you do not know locally.

rules, not much playing in corruption, not a lot of corruption. The wrong purchase process was applied. The nation went to the development of the nation. Counted the system that brought for the citizen is found to be consuming. Take out of the mechanism in IT. Removed ntc. Also dismissed the development committee. Since IT area has repeated all these processes, the IT area does not seem to be expecting hopeful. The morale of a person working has declined. They have stopped investing on why they should be in strike. Trained manpower has not been increased. This field is compromised if the government invests in IT. Harm corruption on IT is not to use the outside company to work in Nepal. & Nbsp;

government is preparing a investment conference. Can that be presented in any of Nepal's ID in Nepal? & NBSP;

personal organization is working. He cannot not allow Nepal not to allow parental company that can make them think. The company that wants to invest in the country look at the policy to get into Nepal and to exit Nepal. Most focus on Exit Policy. It seems how much it is easy to take back the money you have earned. Tax policies are also seen not only in Nepal but also competition in the world. The Local Company is difficult to compete if not noticing such matters. & NBSP;

is that 70 percent of Enterprises are 70 percent of Enterpriations in 20 years. How is Digital Economic in the days of Days?

is only running the digital economy and checking check clerring (Connect IPS). Wallet and checking in the digital economy has increased 240 percent. Other areas are in vicum. There is a situation that 35 trillion dollars can get a digital borrow in India. But we have not been able to go. Portfolio Mannement, Education Technology has not increased. Crossboard Payment System finally started starting.

should develop other Finatech area in 2020 to 2024. Companies occupy space and remain silent. According to the rules of regulating by the regulatory body, it is noting to move one's business forward in which it is in a state of business or in case. All of these things need to be transparent. Meaning the management has to increase in order to increase the growth, the Finateche should also do. Not just a body is not to do.