Does Outsourcing need to be regulated?

Do we really need an organization to regulate the outsourcing business in India? Do we need the government telling us what to do? Do we need someone like NASSCOM to certify people. Come on folks this is free enterprise. The smart ones will survive and the not so smart ones will perish. Do we need a "sheltered workshop" ? Why do we need an IT ministry or an IT Secretary?

Having spent time in the USA, I am an unbashed admirer of the eco system there that helps Entrepreneurs. These are usually private. The government enables it from the outside and not by burdening the system with unecessary bottlenecks.