Kathmandu: Nepal's information technology professionals have expressed serious concerns over the government's plan to establish a central software development and operations centre under the Office of the Prime Minister and Council of Ministers. The Computer Association Nepal (CAN) Federation has urged the government to prioritize collaboration with the private sector rather than competing against it.

The proposed centre is scheduled to begin operations from the month of Shrawan. Under the plan, the government intends to develop and manage software required by government agencies through its own institutional framework. Officials estimate that the initiative could save more than Rs. 20 billion annually by reducing software procurement and licensing costs.

Industry Warns of Long-Term Impact
Despite the government's projected savings, CAN Federation Acting President Chiranjivi Adhikari has warned that the policy could have serious long-term consequences for Nepal's software industry and the broader information technology ecosystem.

According to Adhikari, the state's role should be to create an enabling environment for innovation rather than compete with domestic software companies. He argued that government efforts should focus on policy support for research and development, innovation, technical capacity building, and helping Nepali technology companies expand into international markets.

Lessons from Global Digital Leaders
Adhikari pointed to countries such as Estonia, Singapore, and India as successful examples of digital transformation driven through strong public-private partnerships.

He noted that these countries have built globally competitive technology industries by encouraging startups, investing in research, procuring software through transparent and competitive processes, and supporting local companies in reaching international markets. He emphasized that their governments have acted as facilitators rather than competitors.

Concerns Over Shrinking Domestic IT Market
The CAN Federation believes that if government agencies begin developing most software internally, Nepal's private IT sector could face significant setbacks.

According to the federation, domestic software companies would lose valuable opportunities to undertake government projects, investment in new technologies could decline, and innovation across the industry may slow. The organization also warned that reduced business opportunities would negatively affect employment and the country's growing digital economy.

Adhikari added that without access to large government projects, local companies may struggle to retain skilled professionals, potentially accelerating the migration of software developers and cybersecurity experts abroad.

Call for Greater Collaboration
The federation has urged the government to strengthen public-private partnerships by introducing a transparent, competitive, and accountable public procurement system for technology projects.

Adhikari stressed that Nepal's software industry should be viewed as a long-term national investment rather than merely a procurement expense. He called on the government to hold extensive consultations with the private sector, CAN Federation, industry experts, educational institutions, and other stakeholders before implementing the policy.

He concluded that the decision goes beyond government software development and will play a crucial role in shaping Nepal's long-term digital future.