We visited Bangalore and met with the Mphasis management and other industry participants.
Our take is that out of the 30,000 headcount in HP’s India delivery centre, less than 10,000 are involved in practices that can potentially compete with Mphasis.
Key risk to our Mphasis estimates remains the lack of predictability in quarterly project ramps.
Our checks with the rest of our coverage universe (with data points on dislocations in project ramps in the March quarter) support our bleak outlook for FY10E. Most significant downside risk to our current FY10E estimates appears to be in Wipro and Infosys.
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