A top infotech official has warned the Indian IT industry, already facing trouble spots such as wage inflation, high attrition rates and a strong rupee, cannot afford to sit on its laurels as global competition is on the rise.

"We (Indian IT industry) cannot rest on our success to date," newly-appointed Chief Executive Officer and Managing Director of Infosys Technologies Ltd [Get Quote] S Gopalakrishnan told PTI in Bangalore.

"It's all about what we are doing today, how we are going to compete tomorrow, which is going to decide your future. So, it's being relevant, continuously evolving and changing to meet the market requirements."

Asked which are the countries he thought have the ability to beat India in its own game, Gopalakrishnan said: "Certainly China has the potential because it has a large number of engineering graduates and it's also a growing economy".

But he would not say how many years before Beijing catches up with the 'desi' industry. However, the CEO also said India will continue to be the number one preferred location (for offshore outsourcing).

"I think we will continue to be competitive. The other positive thing which is happening is that there is an ecosystem which is being built in India for technology. And that clusters...that's being created is also going to fuel more growth and create more opportunities".

Gopalakrishnan does not buy the argument that Indian IT sector may witness slowdown after growing in a scorching pace in the recent years.

"The market opportunity is there for companies to grow....business is there for companies to grow. Nasscom continues to project that the sector would grow at 25-30 per cent in foreseeable future. So, I think the opportunity to grow continues to be there."

Given the size of the Indian IT industry today, it is in a much better position to meet the expectations, he said.

"Top tier (Indian IT) companies are much larger today. They have a global brand, global exposure, they have strong leadership, large employee pool....they are in a much better position."

To stay ahead of the race, the newly-appointed CEO said Indian IT industry needs to further enhance its value proposition, service offerings and its portfolio to meet market demand and what the customers are looking for as well as respond to changes which are happening in (market) environment and technology.

"We have to make sure that we address the talent needs of the IT industry. Definitely, we need to address the issue of an appreciating rupee", he said.