Outsourcing to Nepal: A Booming Market for Global Businesses

Outsourcing has been a common way for businesses to scale and grow their business while remaining within a budget worldwide. And, the trend is increasing in Nepal. In fact, businesses from all around the world are now looking to outsource workers for different positions throughout industries like healthcare, IT, recruitment, etc., in Nepal, for many reasons.

With outsourcing, you can free yourself of the stress of having to hire a full-time employee for a job that is seasonal or does not require full-time investment from either the employee or the employer’s side. Further, when you outsource, you get the freedom to focus on core company objectives while letting the outsourcing partner handle less important work with expertise.

To know more about outsourcing to Nepal and why it is now the fastest-growing market for global businesses, be sure to read till the end of this article!

Outsourcing To Nepal: An Overview

In the late 1990s and early 2000s, Nepal started outsourcing. At first, it was for basic services like transcription and simple back-office tasks. As an example, according to a 2013 briefing document, the Telecommunications Act of 1997 and the Electronic Transactions Act of 2006 established the early groundwork for the IT/BPO industry. 

There was an increase in interest among businesses in this industry by the early 2000s. In the early 2000s, the nation made an important leap into the “game” of BPO. Additionally, only a small portion of the projected 6,000 BPO businesses in 2013 were officially registered.

Ever since, Nepal has been able to move from the periphery to the mainstream of outsourcing due to rising worldwide demand for remote services, better connectivity, and policy assistance.

Why outsource to Nepal?

There are several reasons why you should outsource to Nepal. Some common reasons are as follows:

Cost-effectiveness

Businesses can opt for outsourcing to Nepal regardless of their size. This means it is not just the bigger businesses that can enjoy outsourcing. Even smaller businesses with a smaller budget can make the most out of outsourcing services.

The amount spent on paying monthly or annual salaries of full-time employees, along with other benefits, can be used elsewhere for your company’s growth. Likewise, the amount you pay the outsourcing agency will be small as compared to hiring an in-house employee because the hiring is usually seasonal and per work demand.

Skilled workforce

When you are outsourcing to Nepal, you can enjoy skilled work from professionals who have been working in the specified industry for a long time. Also, outsourcing agencies train their staff force as to have them provide only the best quality of work.

English proficiency and cultural compatibility

The workers hired by an outsourcing agency will likely have very good English-speaking skills. This cuts down any language barrier that is usually a concern when you’re hiring from another country or are not as fluent in the local language. Nepalese workers are just as adaptable to other cultures, which makes them culturally compatible.

Time zone & flexibility

Nepal’s time zone (GMT+5:45) provides flexibility for 24/7 operations and permits overlap with Western business hours. And, even when your in-house team is not working, your Nepalese outsourcing partner will be working actively for you.

Emerging infrastructure

Nepal is emerging in the infrastructural sector. Hence, there are better technologies and smarter ways of working in niche industries for the outsourcing partners. Your service provider will help you get access to the latest technologies and best industry ideas without you having to invest an excessive amount.

Also read: How to Hire Employees in Nepal: A Guide for Global Companies in 2025

Outsourcing to Nepal in the Age of Innovation

Nepal is no longer merely a place for cost advantage. For the digital era, it is reimagining itself. Many companies are providing software development, machine learning, and analytics services to foreign clients, and the younger workforce is digitally native.

Additionally, starting about 2010, the government selected BPO and ICT as key export service industries. The “new Nepal” focuses on utilizing global delivery models, remote staffing, virtual teams, and innovation. The outsourcing sector is supporting Nepal’s economic transformation in a number of ways, including generating foreign exchange, employment, skill development, and entrepreneurship.

What Made Outsourcing to Nepal Different?

Outsourcing is common worldwide. But why is it that Nepal is different when it comes to outsourcing than other countries? We have more than just a reason. Some major ones are as follows:

• Low cost with high-quality service
• Adaptation of global culture
• Geographical and cultural advantage
• Fresh capacity for growth
• Flexibility for scaling up and down
• Improving data security tactics

Nepal’s BPO Skill Set

Certain skills make Nepal’s BPO preferable to other countries, and it’s not only the amount they charge per service. The following are such skill sets:

• English proficiency: The outsourcing partners ensure that each worker they assign to you is proficient in English. Needless to say, the majority of youth in Nepal converse in English and are educated in high-quality English medium schools, making them fluent in the language.
• Technical skills: Numerous graduates have training in data processing, software development, and science and technology. And, the technical skills among youth are increasing day by day, giving the country a good supply of talented individuals.
• Customer service and communication skills: Telemarketing services, chat/email assistance, and call centers are expanding. This has made it easier for the workers to become trained experts in customer service and sharpen their communication skills.
• Back-office and administrative skills: Data entry, virtual assistants, accounting, finance, and HR support are all well-served. These are the duties most companies don’t want to spend too much time or money on, but still consider crucial.
• Teamwork and adaptability: The employees are at ease working remotely, in international teams, and with flexible schedules. This has made teamwork and adaptability to work easier among employees as compared to traditional working models.
• Emerging higher-value skills: Employer-of-record (EOR) models, cloud services, machine learning, analytics, and remote employment are all becoming more popular in Nepal. This has also led to the flourishing of higher-value skills among the working population.

Common Functions to Outsource to Nepal

The Nepalese outsourcing industry majorly focuses on the following functions:

• Software development and IT
• Technical assistance (infrastructure management, help desks)
• Administration and back-office assistance (HR, data entry, accounts payable/receivable)
• Call center operations, both inbound and outbound
• Lead generation and telemarketing
• Support services via chat and email
• Digital marketing (content production, social media administration, SEO)
• Social media management
• Broker assistance and mortgage processing
• Financial and accounting functions
• Remote staffing services and virtual care assistants
• Augmentation of IT personnel (nearshore and distant teams)
• Remote staffing and Employer-of-Record (EOR) services for international companies

You will also be interested in: The Proven Benefits of Hiring Skilled Remote Staff in Nepal

Why Are Businesses Outsourcing to Nepal?

Outsourcing had once been limited to countries like the Philippines and India. As of today, Nepal has been doing excellent in the industry. The growth pattern of this industry seems to be just as positive for many reasons.

Businesses worldwide have a motive to become competitive and better than their competitors. But newer businesses with bigger visions often fall short of human resources and budget for the same. That’s where outsourcing to Nepal helps them come head-to-head in competition with bigger companies in their industry.

The outsourcing industry in Nepal has now bridged the gap between companies that have the vision and the idea but cannot afford to dream big just yet because of their newness and budget constraints. With the help of outsourcing, they can scale up and down as and when they want while also getting access to professional help.

Not only this, but when you rely on a third-party outsourcing agency in Nepal, you get the freedom to work on your core objectives. Even startups with two to three individuals or a solo business owner can get the benefit of working with a bunch of experts without having to set up a building for an office or hiring in-house employees.

With time, it is not just the startups and medium-sized businesses that are opting for outsourcing to Nepal. The bigger companies are also assessing the advantages and entering the industry as clients to become more profitable and scalable.

KMPL: Your Leading Partner for Outsourcing to Nepal

If you have decided to hire a reliable outsourcing partner in Nepal, then Kantipur Management Private Limited is the go-to partner for you! The company has been operating with an impressive staff force for over a decade now.

Their core focus on trust, integrity, and customer customer-centric approach to work has helped build a commendable clientele throughout industries over the years. KMPL’s working success rate has been increasing its client base year by year.

Furthermore, the company employs over 1,050 + staff and handles over 20 million customer interactions. Their core work includes call centre & digital customer experience, back-office support, finance & accounting, mortgage processing, and human resources & staffing solutions.

With an infrastructure of 12,000 + sq ft with a high security setup, the company has been actively attracting more clients currently.