The association played a key role in impressing upon the industry the need for innovation. As a result, this year the prime minister has given six innovation awards to IT/ITES companies, he noted.

"Nasscom has moved from being an organisation in the context of the license raj into a world-class promoter of innovation," he said.

By the year 2008, the Indian IT sector is expected to employ over 1.5 million people in customer care, financial services, HR services, payment services, administration and content development.

"We are still not a dominant player in the IT/BPO segment. The small and medium enterprises (SMEs) have to be roped in...many of our SMEs have the capacity to turn into another Infosys...we have to tell them how."

Nasscom members also promote social development through the application of information and communication technology (ICT).

"We have been successful so far because of our focus on education. But East Europe, China, Malaysia, Singapore have all taken national stands on getting ahead in the IT sector," said Narayan who is not in favour of reservation in the private sector.

"I would like to see India's IT software and services exports grow to $60 billion in the next three years and for that we have to maintain our lead in education," he said.