MphasiS sees stable pricing in 3 months to Oct

BANGALORE, INDIA: Mid-sized Indian outsourcer MphasiS, a unit of Hewlett-Packard Co, expects pricing to remain stable in the three months ending October and does not see a significant rise in spending by clients, its chief executive said on Thursday.

"Even when there is confidence, the confidence is very fragile," Ganesh Ayyar told Reuters in an interview.

A spate of weak economic numbers from the United States, the largest market for Indian outsourcers, have heightened fears the U.S. economy was at risk of another downturn.

Ayyar said MphasiS was looking at opportunities to buy companies that have annual revenue of $50 million to $100 million to strengthen its presence in financial services, insurance, capital markets, telecom and healthcare services.

He declined to disclose where the likely targets were.

MphasiS, in which Hewlett-Packard owns 60.6 per cent, reported late on Wednesday an 18 per cent rise in May-July net profit to 2.71 billion rupees ($58 million), helped by increased outsourcing contracts.

Asked about technology spending by clients, Ayyar said: "My view is that it won't go up significantly, especially with the data from the U.S."

MphasiS shares have fallen by about 13 percent this year, while the sector index .BSEIT has risen 6 percent and the main index .BSESN that is up 4 per cent.