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Highlights: Global Accounting Initiative in Nepal (GAIN) Project

Highlights: Global Accounting Initiative in Nepal (GAIN) Project

[An Initiative of ICAN for promoting Accounting Outsourcing Service in Nepal]

 

Background on Outsourcing

In today’s competitive and fast evolving business environment, outsourcing accounting and finance functions is not just a tactical move, it is a strategic imperative. It enables organizations to remain agile, scalable, and focused on growth, while ensuring financial accuracy, transparency, and compliance. Over the past two decades, the Knowledge Process Outsourcing (KPO) industry has experienced a significant transformation, with businesses increasingly turning to external service providers not only for routine operations but also for specialized, knowledge intensive functions. Organizations of all sizes ranging from startups to multinational corporations are now outsourcing critical tasks such as accounting, auditing, payroll management, tax return filing, and financial documentation to expert third party firms.

The COVID-19 pandemic further accelerated this trend. As remote work and digital collaboration became the norm, businesses recognized the value of outsourcing in ensuring continuity, flexibility, and resilience. The ability to scale operations up or down quickly, without compromising quality, became a strategic advantage. Among the fastest growing segments within KPO is Accounting and Finance Outsourcing. This includes a wide range of services such as bookkeeping, payroll processing, tax compliance, financial reporting, auditing, and regulatory documentation. The increasing use of automation tools, cloud accounting software, and data analytics is enhancing the precision and speed of these services, making them more accessible and impactful for businesses across industries.

As a result, accounting and finance outsourcing is no longer viewed as a support function, it is now a strategic enabler that empowers organizations to focus on innovation, growth, and long-term value creation.

Global Market Outlook

As reported by international newspapers and magazines, a significant number of professional accountants are retiring in countries such as the USA and UK, while enrolments in professional accountancy courses are on a declining trend. This indicates a growing global shortage of accounting professionals, which is driving increased demand for outsourcing accounting, auditing, and finance services to emerging markets like Nepal, which offers a skilled and cost‑competitive talent pool. As global demand for outsourcing continues to rise, Nepal has the opportunity to strengthen its position by investing in digital infrastructure, talent development, and service quality especially in the high-growth domain of accounting and finance.

Global and Regional Data

The global outsourcing industry is experiencing robust growth, driven by digital transformation, cost optimization, and the increasing demand for specialized services. According to recent market studies, the global Business Process Outsourcing (BPO) market is projected to grow from USD 302.62 billion in 2024 to USD 525.23 billion by 2030, reflecting a compound annual growth rate (CAGR) of 9.8%. Similarly, the Knowledge Process Outsourcing (KPO) market is expected to expand from USD 87.98 billion in 2025 to USD 211.07 billion by 2030, growing at a CAGR of 19.1%.

India plays a pivotal role in the global KPO sector, accounting for approximately 70% of the market share, owing to its vast pool of skilled professionals and strong IT infrastructure. In contrast, India holds around 5.1% of the global BPO market, indicating a strategic shift toward higher value services. The Philippines also commands a significant portion of the KPO market, with KPO services comprising 34% of its outsourcing industry as of 2016, and efforts underway to increase this to 42%. The country’s strengths in English proficiency, cost competitiveness, and domain expertise make it a preferred destination for high value outsourcing, especially in finance, legal, and healthcare services.

Scenario in Nepal

In Nepal, the outsourcing industry is emerging as a promising sector driven by both IT and business process services. While Nepal's IT service annual exports already exceed USD 600 million, the BPO market is also gaining momentum as the market size of BPO in Nepal is projected to reach USD 81.82 million by 2025, with an expected annual growth rate of 7.04%, reaching USD 115 million by 2030. While specific data on accounting and finance outsourcing is limited, industry insights suggest that the Accounting and Finance Outsourcing market in Nepal is currently valued at approximately USD 45 million. This reflects growing interest in specialized outsourcing services, particularly in areas such as bookkeeping, payroll, tax compliance, and financial reporting.

About the Global Accounting Initiative in Nepal (GAIN) Project

Despite the rapid global expansion of Business Process Outsourcing (BPO) and Knowledge Process Outsourcing (KPO), Nepal is yet to emerge as a recognized outsourcing destination. However, the recent growth of IT enabled KPO services over the past couple of years signals a shift in momentum. Many Chartered Accountants members, and CA students at the Institute as well as other Nepali CA & CA Students from foreign countries are already in this profession for some years. It is estimated that about 1,000 Nepali accounting professionals are engaged in international accounting and finance outsourcing, generating an estimated NPR 6 billion (USD 45 million) annually even without formal government facilitation. These professionals serve clients in the UK, Australia, and other markets, offering services such as bookkeeping, payroll, tax preparation, and financial reporting.

In this context, the Institute has launched Global Accounting Initiative in Nepal (GAIN) Project in 2025 for promotion of export of accounting services. The project is envisioned as a structured approach to unlock Nepal’s outsourcing potential in accounting and finance. GAIN aims to build an ecosystem by formalizing existing efforts, strengthening infrastructure, ensuring professional upskilling, and promoting Nepalese firms in the global market. More than just an employment generator, it seeks to retain skilled youth within. Although ICAN and government has not taken any formal steps yet to promote accounting and finance outsourcing business in Nepal and various firms are doing accounting, audit and finance related outsourcing business in Nepal, expand foreign currency earnings, and establish Nepal as a trusted hub for international accounting and financial services.

To support this vision, ICAN has planned to take the lead in developing the accounting and finance outsourcing industry in Nepal. Under this project, ICAN plans to explore global opportunities, assess Nepal’s key issues, highlight the country’s competitive advantages, and formulate a comprehensive roadmap for the industry’s growth. This roadmap will be implemented in collaboration with the government, accounting professionals, and the private sector, ensuring a coordinated effort to position Nepal as a credible outsourcing destination.

Project Goal

To establish Nepal as a competitive and sustainable hub for international accounting and financial services through BPO/KPO, retaining skilled youth and driving economic growth via service exports.

Objectives

The Objectives of the Project are:

  1. Develop a clear regulatory and institutional framework for accounting outsourcing.
  2. Build infrastructure and adopt secure technologies for scalable service delivery.
  3. Upskill professionals in global accounting standards and tools.
  4. Promote Nepalese firms through global branding and strategic partnerships.
  5. Create 150,000+ jobs annually for accounting graduates within ten years.
  6. Generate more than USD 6.3 billion ??? annually in foreign exchange through KPO services.

Addressing National Challenges through GAIN

Nepal faces persistent challenges including:

  • Youth unemployment
  • Underutilization of skilled human capital
  • Mass migration for seeking education and employment

Each year, over 1 million Nepali youths leave the country, seeking job opportunities abroad. This ongoing brain drain undermines national development and economic stability. The Global Accounting Initiative in Nepal (GAIN) Project aims to address these challenges by creating a structured BPO and KPO ecosystem focused on accounting and finance by formalizing and scaling this sector, the GAIN Project seeks to:

  • Retain skilled talent within Nepal
  • Create high value employment opportunities
  • Promote entrepreneurship in outsourcing services
  • Strengthen Nepal’s position in the global knowledge economy

Nepal’s Competitive Edge in Accounting and Finance Outsourcing

Nepal possesses several distinct advantages that position it well for accounting and finance outsourcing:

           a.Competitive Human Resources

           Nepal has a robust talent pool in accounting and finance, as shown below:

S.N.

Resource Category

Number (Approx)

1

Chartered Accountants (ICAN)

2,500

2

Registered Auditors (ICAN)

7,200

3

CA Students (ICAN)

14,000+

4

Professional Accountants from other Institutions

2,300+

5

CA Students from Other Institutions

8,000+

Total

34,000+

Note: Data of management graduates is not included in above table.

      b.English Proficiency

Nepal ranks 56th position globally in the English Proficiency Index, ahead of several regional competitors, making it well suited for international client communication.

c.Low Human Resource Cost

The cost of skilled labor in Nepal is significantly lower than in many outsourcing destinations, offering a strong value proposition for global clients.

d.Time Zone Advantage

Nepal’s time zone (GMT+5:45) enables round-the-clock service delivery and efficient collaboration with clients in Asia, Europe, and North America.

Role of ICAN in Driving the GAIN Project

The Institute of Chartered Accountants of Nepal (ICAN), established under the Nepal Chartered Accountants Act, 1997, is the statutory autonomous body responsible for regulating the accounting profession in Nepal. ICAN plays a pivotal role in:

  • Developing and enforcing accounting and auditing standards
  • Licensing and certifying Chartered Accountants
  • Promoting ethical compliance and continuing professional education
  • Enhancing financial accountability and transparency in both public and private sectors

Aligned with its five-year Strategic Plan, ICAN is committed to supporting Nepal’s journey toward economic growth and good governance. A key pillar of this strategy is the Global Accounting Initiative in Nepal (GAIN) Project, launched to:

  • Promote employment generation
  • Enhance foreign currency earnings
  • Tap into global outsourcing opportunities
  • Position Nepal as a trusted hub for accounting and finance outsourcing services

Expected Outcomes of the GAIN Project

The successful implementation of the Global Accounting Initiative in Nepal (GAIN) Project is expected to deliver transformative results for Nepal’s economy, workforce, and global positioning in the accounting finance outsourcing industry. The following key outcomes are projected over a ten-year timeframe, provided that the activities planned by ICAN and the support expected from the government are realized:

1. Employment Generation

  • Over 150,000 professionals will be engaged in the accounting and finance outsourcing sectors.

  • This will significantly reduce youth unemployment and brain drain, while creating high value jobs aligned with global standards.

 

2. Foreign Currency Earnings

  • Annual revenue generation of more than USD 6.3 Billion annually through accounting and finance outsourcing services.

  • This will contribute to:
    • Strengthening Nepal’s foreign exchange reserves
    • Enhancing the country’s export service portfolio
    • Supporting macroeconomic stability and reducing reliance on remittance-based income

3. Institutional Strengthening

  • ICAN will emerge as a regional leader in outsourcing focused professional development and regulation.
  • Nepal will gain recognition as a trusted outsourcing destination, attracting long term partnerships and foreign investment.

4. Ecosystem Development

  • Establishment of outsourcing hubs, digital platforms, and incubation centers will foster innovation and entrepreneurship.
  • A structured ecosystem will support startups, SMEs, and large firms in scaling globally.

5. Global Visibility and Integration

  • Nepalese firms and professionals will gain international exposure, participate in global networks, and contribute to cross border service delivery.
  • The country will be positioned as a cost effective, skilled, and reliable partner in the global knowledge economy.

Currently, approximately 1,000 Nepali accounting professionals are engaged in international accounting and finance outsourcing, generating an estimated NPR 6 billion (USD 45 million) annually even without formal government facilitation. These professionals serve clients in the UK, Australia, and other markets, offering services such as bookkeeping, payroll, tax preparation, and financial reporting.

Despite these strengths, the sector remains underutilized, leaving significant potential to scale operations and establish Nepal as a credible international outsourcing hub.

Key Issues in Finance & Accounting Outsourcing in Nepal

  • Global Perception & Country Branding
  • Infrastructure Deficiencies
  • Talent & Skills Gap
  • Marketing and Market Access
  • Legal and Regulatory Ambiguity
  • Operational and Financial Constraints

Initiatives Under the GAIN Project

  1. Under Lead of ICAN
    1. Country Branding & Strategic Marketing
    2. Skill Development & Capacity Building
    3. International Exposure & Collaboration
    4. ICAN Accounting Outsourcing Provider Platform/portal
    5. Ecosystem Enablement & Local Engagement
    6. Research & Policy Advisory
  2. Under Advocacy for Government Support
    1. Regulatory & Policy Reform
    2. Infrastructure Development
    3. Global Promotion