The $22 Billion IT Horizon: Building Nepal’s Digital Future on Security and Policy
Nepal has set an ambitious target: to grow its IT industry exports from an estimated $1 billion today to $22 billion by 2033, creating 1.5 million direct and indirect jobs. This vision, dubbed the "IT Decade," is a bold declaration of intent for a nation often overlooked in the global tech landscape. But how does a country achieve such exponential growth? According to Deepen Chapagain, Country Head of Guardsix and a key figure in Nepal's tech leadership, the answer lies not just in talent and innovation, but in the often-underestimated foundations of robust cybersecurity and a supportive legal and policy framework.
Chapagain’s insights stem from decades of experience at the forefront of critical infrastructure security and his evolving role in shaping Nepal's tech future. His journey reveals that scaling a technology company, much like scaling a national industry, demands constant adaptation, strategic alignment, and an unwavering commitment to trust and protection in an increasingly digital world.
The Unseen Guardians of Europe's Critical Infrastructure
Deepen Chapagain is the Country Director of Guardsix, a European cybersecurity company that provides security solutions for organisations protecting critical infrastructure and essential services across Europe. Its customers and use cases span sectors including energy, healthcare, public services and other essential infrastructure. The company’s rebranding from Logpoint to Guardsix marked an evolution in its positioning and brand identity, reflecting its broader focus on cybersecurity operations, detection and response, sovereignty and compliance.
The name Guardsix, derived from the military phrase "I have your six" (meaning "I have your back"), reflects the company's mission to support those who guard society. This shift underscores a critical lesson in the tech industry: a brand must continuously evolve to accurately represent its value proposition. With an engineering and operational presence in Nepal, Guardsix demonstrates how sophisticated cybersecurity capabilities can be delivered across geographical boundaries, including to organisations protecting critical infrastructure in Europe.
The Evolution of Security: From Compliance to Core Business
Chapagain emphasizes that security is inextricably linked to value and risk. He draws an analogy to a village where people once left their doors unlocked because there was little valuable to steal and low risk of theft. As digital assets have multiplied, so too have the risks. Early on, security measures were often regulator-driven, implemented out of necessity rather than proactive strategy. Companies collected logs because they had to, not because they fully understood their value.
However, a single incident a data breach, a system outage, or an integrity violation can quickly shift perceptions. When an organization can easily trace the "why" and "how" of an incident using robust security systems, the value becomes undeniable. Today, cybersecurity is no longer just an IT department’s concern; it is a board-level issue. A significant data breach can result in substantial financial penalties, including, for serious GDPR infringements, fines of up to €20 million or 4% of a company’s total worldwide annual turnover, whichever is higher, along with customer loss, operational disruption, and significant reputational damage.
Security, therefore, is a fundamental aspect of business continuity. It’s about protecting confidentiality (preventing unauthorized access to sensitive information), integrity (ensuring data is accurate and unaltered), and availability (guaranteeing systems are accessible when needed). Thinking about security early in the design phase is not only more effective but also more cost-efficient than retrofitting solutions after a breach. This shift in understanding, from compliance to intrinsic business protection, is crucial for any nation aiming to build a globally competitive IT industry.
Leading at Scale: The Art of Unlearning and Alignment
Deepen Chapagain has witnessed Guardsix grow from a three-person team in 2008 to 100+ employees today. This journey has offered profound lessons in leadership and organizational scaling. What works for a team of 10 is fundamentally different from what works for 150. A key challenge is maintaining organizational alignment towards a common goal. In smaller teams, a single sentence can suffice; in larger ones, deliberate communication and a shared understanding of the product, customer, and strategic direction become paramount.
For leaders, this growth necessitates a continuous process of "unlearning." Chapagain highlights the human tendency to believe what is favorable or what aligns with pre-formed views. The ability to step back, listen, and accept that one’s own perspective may not always be right is critical. He shares a compelling anecdote about a bridge between Denmark and Sweden, which is half above and half below the sea. Both he and a friend had partial, yet seemingly contradictory, views, leading to disagreement until they saw the bigger picture. This illustrates how partial information can lead to rapid rejection of other views, hindering a comprehensive understanding.
Another challenge for leaders, especially those with a technical background like Chapagain, is the temptation to dive into operational details. While this might offer immediate solutions, it can inadvertently slow down the team and stifle their potential. The art lies in maintaining an "arm's length distance" staying informed and available for support and strategic alignment, but empowering teams to function autonomously. This balance, Chapagain admits, is one of the hardest things to achieve in leadership.
The Legal Backbone of Digital Trust
Chapagain's decision to study law, even while deeply entrenched in cybersecurity, underscores a vital connection: technology and law are becoming increasingly intertwined. Understanding legal frameworks what constitutes a right, a crime, or negligence is essential for navigating the complexities of the digital world. For Nepal, this intersection is particularly critical as it embarks on digital transformation initiatives.
A robust legal system is foundational for cybersecurity. This includes comprehensive cyber laws that define rights, penalties for breaches, and compensation for victims. While Nepal has the Electronic Transaction Act, an updated and more comprehensive cyber act, alongside a strong Privacy Act, is crucial. These laws must protect personal identifiable information, ensure data is used only for its intended purpose with consent, and grant individuals the right to erasure.
Beyond legislation, there's a need for practical mechanisms to address digital fraud. The current system often makes it cost-prohibitive for individuals to seek legal remedy for small online scams, fostering a culture where perpetrators face little consequence. Furthermore, security awareness is paramount. Just as people recognize physical threats, they need to be educated to identify digital threats like phishing and online scams, which are constantly evolving. The "four-eye principle," where critical data access requires approval from at least two individuals, is an example of a technological implementation that enhances accountability and protects privacy.
Charting Nepal's IT Future: Strategy for $22 Billion
Achieving Nepal's $22 billion IT export target by 2033, alongside creating 1.5 million jobs, is an ambitious but achievable goal, according to Chapagain. It demands a concerted effort from industry, academia, and government. Key strategies include:
- Strengthening Legal and Policy Instruments: Establishing robust cyber laws, data privacy regulations, and stable tax policies that assure global businesses of a safe and reliable operating environment in Nepal.
- National Branding and Tech Diplomacy: Actively positioning Nepal as a global IT destination. This involves investing in marketing, leveraging tech diplomacy through embassies, and creating a compelling narrative about Nepal's capabilities in specific domains.
- Skill Development and Academia Collaboration: Increasing the volume and quality of IT professionals. This means tailoring academic programs to industry needs, introducing computer and AI education at earlier stages, and recognizing that indirect IT jobs require diverse skill sets.
Regarding the impact of AI, Chapagain believes it will primarily amplify human abilities rather than replace them. While AI might enable fewer people to accomplish tasks previously requiring many, the industry will adapt, finding new ways to generate value and utilize human talent more effectively.
When asked about the fastest path to the $22 billion target, Chapagain offers a pragmatic view: the service industry will likely be the primary driver in the near term. While product development is crucial for long-term value creation and higher per capita revenue, the service sector represents a lower-hanging fruit given Nepal's current industry maturity and global market access. He suggests focusing on niche areas where Nepal can excel, such as Fintech services, Cybersecurity, and Data Analytics in healthcare (particularly for the US market). Ultimately, the goal is to identify Nepal's ideal customer profile and brand the nation as a destination for these specific, high-value services.
Beyond the Digital Footprint: Leadership in a Connected Age
Deepen Chapagain once harbored a desire for a minimal digital footprint, preferring to remain unseen online. Yet, today, he stands as a public voice for Nepal's IT industry, actively engaging in podcasts and leading organizations like NAS-IT. This transition highlights a profound shift in modern leadership: the necessity of public engagement for collective progress.
His involvement with NAS-IT was driven by a clear vision: to contribute to the growth of Nepal's IT industry. He realized that individual company success, while important, is amplified when leaders unite to build a stronger ecosystem. In an age where national branding and tech diplomacy are vital, stepping into the public sphere becomes a responsibility, not just a choice. It's about shaping the narrative, advocating for necessary changes, and inspiring the next generation.
Deepen Chapagain's journey from a developer to a country head, and now a national industry leader, embodies the spirit of continuous growth and adaptation. His insights reveal that for Nepal to achieve its ambitious IT goals, it must not only foster technological innovation but also build robust legal and policy frameworks, cultivate strategic leadership, and actively brand itself on the global stage. The future of Nepal's IT decade will be defined by how effectively it integrates these pillars, transforming ambition into a tangible reality.
