Credit rating agency Standard & Poor’s (S&P) analysts have said in a latest report that Indian IT sector majors including Tata Consultancy Services, Infosys and Wipro are expected to grow in double digits in the coming few years, ahead of industry average.

Abhishek Dangra, credit analyst, S&P said that the IT companies have ‘strong margins, are cost-competitive, and have proven delivery models’, which will allow them to face challenges in the coming years and maintain growth.

The report read that the risks related to business and reputation are rising because of rising protectionism, “but the three largest Indian IT companies are expected to adapt to the challenges, as they have in the past.”

The report also noted that these firms will face a major long term challenge as foreign companies increase their workforce in India. They also face other challenges such as their dependence on the slowing economies of the US and Europe, visa issues, rising wages in India and foreign exchange fluctuations.

Many countries are moving away from outsourcing due to high unemployment, slowdown in economic growth and political issues. S&P has given TCS and Infosys BBB+ and Stable rating, while Wipro holds BBB and positive credit rating.