Information Technology sector in Nepal has been steadily growing over the past decade. Nepal has made significant progress in terms of infrastructure development, internet connectivity, and technology adoption. Several software development companies, IT training institutes, and startups have emerged, contributing to the sector’s growth. The government has also taken initiatives to promote IT and digitalization, such as the “Digital Nepal” campaign. Nepal has immense potential for the IT sector due to its young and talented workforce, lower labor costs compared to many other countries, and the growing demand for IT services worldwide; which provides opportunities for collaboration and outsourcing. The domestic market for IT products and services in Nepal is relatively small and entities often need to explore international markets to scale up, which requires additional resources and expertise and face extensive competition from large economies round the world. Access to financing options, especially for startups and small IT businesses, is often limited. Lack of venture capital, high interest rates, and complicated loan procedures resists the growth of IT enterprises.