Bangalore: Infosys managing director and CEO (chief executive officer) Nandan Nilekani today (Feb 2, 2004) indicated that the IT (Information Technology) industry's success had not yet made a large impact in poverty reduction in Bangalore, but said technology should be used as a driver in implementing structured poverty reduction programmes.

"I don't think the trickle-down effect is enough," said Nilekani, pointing that though the software industry employed 1.5 lakh people and provided additional employment to a few lakh people through ancillary services, there was a need for more structured programmes to reduce poverty.

Delivering an address on "The IT Story" at the World Bank's Bangalore workshop ahead of the Shanghai poverty conference in May, Nilekani, said the city's software exports contributed $ 4 billion for the approximate $12 to $13 billion GDP (Gross Domestic Produce) of the city.

"In employment terms, a few hundred thousand people generate about $4 billion in GDP, it was disproportionate when compared to the others," he said.

Nilekani said there was a challenge ahead in reducing poverty, but the role of IT development is crucial in ensuring poverty reduction.

He said the talent pool could be leveraged for various programmes as individuals "who are young and idealistic want to contribute" for benefit of the society.

Nilekani said that advances in technology had enabled delivery of services through a large global pool and the resultant job creation, which has not been witnessed in the last 20 years.