Documents

SWOT Analysis of the Consulting Industry in Nepal*

A two days training program on the Development of National Consulting Services was held 2-3 August 2006. The SWOT analysis presented below is the compilation of the remarks provided by the participants representing local consulting firms.

1. Strengths

• Over 20 years Experiences working on development projects
• English capability
• Dedication, hard working and honesty
• Experiences working with international organizations
• Knowledge of international standards and guidelines
• Expertise available in many sectors, particularly in hill & mountain infrastructure
• Well equipped (both office and field equipments)
• Capability and willingness of working in difficult situations (terrain/climate/conflict)
• Competitive in cost
• Networking through SCAEF

2. Weakness

• Institutional development at infancy
• Lack of supportive policy and legislation
• Lack of clarity in policy, regulation on consulting services
• Lack of an accreditation system
• Lack of matured professionalism among consulting firms
• Lack of training
• Lack of learning from the past experiences
• Human resource constraint
• Lack of promotion and awareness of consulting profession
• Unable to compete in the international market as a firm/consortium
• Lack of business networking and marketing

3. Opportunities

• Being a developing country, Nepal offers a promising domestic market with a lot of infrastructure projects to come
• Neighboring two latest international markets – China and India
• Increasing opportunities from international aid agencies
• Government policy on outsourcing consulting services
• Increasing use of consulting services by the private sector
• WTO membership
• FIDIC and TCDPAP membership

4. Threats

• Unhealthy competition/corruption
• Political instability
• Poor economy
• Brian drain
• WTO/globalization/foreign competition
• Different policies/guidelines/procedures/documents applied by the Government and different international aid agencies (ADB, WB, etc)
• Government indifference in supporting national consulting industry

5. Recommendations
(a) At the Government Level
» Recognize that a strong and growing national consulting industry is vitally important to the country’s sustainable economic development
» Support the growth of the industry by creating a healthy environment through good governance:
» Implementing consistent, transparent policies and regulations on the industry
» Taking serious actions to prevent corruption
» Applying an incentive scheme to attract the overseas Nepalese talents to return to serve the country (China as a good example); and provide policy and financial support to the human resources development (gender issue included) and stop the brain drain.

(b) At the Industry Level
» Maintain an effective channel (such as SCAEF) for dialogue with the Government to reflect the concerns from and seek support to the industry.
» Help the Government in its efforts for good governance and anticorruption
» Provide training programs, in cooperation with the government, multilateral and bilateral aid agencies, for the capacity building of the national consulting profession.
» Promote the Nepalese consultants to the international markets through various opportunities provided by FIDIC, TCDPAP and other regional or international associations of consultants
» Consider to develop an accreditation system

(c) At the Company Level
» Develop a long term strategy plan (ADB and WB’s CSPs can be useful documents for firms who wish to work for these organizations to identify its business development target areas and sectors)
» Based on the company’s strategic plan, develop and implement a capacity building program (training of in-house staff and/or develop a network of retainers)
» For small and new firms, focus on the domestic market and work with international consultants as local partner, accumulate experiences for the future – form consortiums.
» For big and experienced firms, China and India are reachable market, perhaps through collaboration with international firms who already have strong presence in these countries (search potential business partners through the information on shortlisted firms provided by ADB’s website)
» Encourage staff to register at ADB’s DICON as individual consultant to enhance opportunity to win a contract
» Once wining a contract, make sure to deliver good service.

(d) At the Individual Level
» Sharpen skills and update knowledge to meet the demand of the market
» Take actions to market yourself:
» Register in DICON with ADB and other organizations
» Attend business opportunity seminars
» Keep in touch with potential clients (project or resident mission staff, EA officials)
» Network with potential partners (local or international consulting firms, who might use you as a team member)
» Send EOIs (Expression of Interest) in time.
» Make sure to deliver good service once wining a contract