Indian software services company MphasiS Ltd. reported better-than-expected results for the first quarter of 2010 with the help of new deals from parent Hewlett-Packard, as outsourcing demand from the U. S. and Europe started to pick up.

During the quarter the company reported a net profit of Rs. 268.3 crore against Rs. 210 crore, an increase of 27.7 per cent from the same period of the previous financial year. It has also made benefits from the foreign exchange during the quarter, but a large part of it was offset by higher taxes.

Revenue increased 21.19 per cent to Rs. 1, 191.6 crore from Rs. 977.7 crore over the year-ago period. Operating profit registered an increase of 27.2 per cent over the first quarter of 2009.

According to MphasiS Chief Executive Ganesh Ayyar, "Our customer acquisition engine worked well. We continue to focus on operational excellence."

With stabilization in economies around the world, Indian technology companies are getting more outsourcing of established functions.