The survey was carried out by ISET-Nepal, CAN federation and JICA to assess the status of import and marketing of computer and its peripherals in Nepal. It also aimed to assess the status of the software industry in Nepal and its contribution in creating jobs. The study adopted an exploratory method to gather information from individuals and IT firms. Both survey and Key Informant Interviews (KII) with IT experts were carried out. Two sets of questionnaires, each for hardware and software business were prepared. ISET-Nepal designed questions related to hardware and JICA Nepal designed questions regarding the software. Both questionnaires were tested, revised and the final versions were administered to retailers and distributors located in Kathmandu by the CAN Federation. The result showed that the most of the business were established in 2008 and the sale ratio of software developed in domestic market was 50% and for foreign market was about 25%.