Bangalore-based IT services company Mphasis has seen profits decline over the past year, and expects this to continue as its parent company and client HP plans to cut around $2 billion in costs from its enterprise services business.

The Indian Economic Times has reported that, despite owning just over 60 per cent of Mphasis, HP has no plans to offer further financial support to the software services company. However, Mphasis chief executive Ganesh Ayyar insists that his organisation will not be stepping back from the BPO arena.

"The HP decline is a very bitter pill that we have to swallow and we continue to explore newer ways of attempting to arrest the decline… Over the last 12 months, things have looked up in our international BPO business and we've also won a few orders there, in fact, BPO is a big focus area for us this year.”

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