MUMBAI: Large IT Indian providers such as Infosys, Tata Consultancy Services (TCS) and Wipro may struggle to grow at 20% unless IT budgets ramp up. 

Some of the reasons for this include an already existing high penetration into large US banking and telecom clients in traditional services, less generous doses of large deals, and slower than expected acceleration in Europe revenues, brokerage firm Kotak Securities said in a report. 

Our base model for the Indian IT is based on growth of 10-12% higher than growth in global IT spending with a change in IT budgets leading to swing of 6-8% points from trough to peak, the analysts said. ""The law of large numbers is finally catching up with Indian IT,"" they added. 

While the Indian IT industry will continue to grow faster than global IT spends, the differential will narrow. The growth scenario will be better than the base case if there is accelerated growth in Europe, acquisitions coupled with innovative engagement structures and expansion in government business, the analysts said. 

Their forecast for higher growth for Indian industry is based on a still large untapped addressable market and global delivery model gaining higher wallet share in IT spends, although both these factors come bundled with challenges, they said.