INTERVIEW-UPDATE 1-India MphasiS sees no ease in price pressure

* Parent HP helps win large outsourcing deals - CEO

* Revenue from AIG's India IT unit to start from Oct - CFO

* Profit margins to be maintained at current levels - CFO (Adds details, byline, share price)

By Sumeet Chatterjee

BANGALORE, Sept 30 (Reuters) - India's MphasiS (MBFL.BO: Quote, Profile, Research) is winning large outsourcing deals due to its relationship with Hewlett-Packard Co (HPQ.N: Quote, Profile, Research) but pricing pressure is unlikely to ease in the near term, top officials said on Wednesday. MphasiS, a mid-sized IT services firm in which HP owns a majority stake, is also not seeing an increase in the IT budget of its clients despite some improvement in the global economic environment.

"The sentiment has improved but whether the IT budgets have been lifted, the answer is no because there will be clearly a lag between sentiment and increase of IT budgets," Chief Executive Ganesh Ayyar told Reuters in an interview.

"If the IT budgets have not gone up, I don't see suddenly any sense of euphoria," he said. "Pricing pressure I don't think will ease."

Indian outsourcers such as MphasiS and bigger local rivals Tata Consultancy Services (TCS.BO: Quote, Profile, Research) and Infosys Technologies (INFY.BO: Quote, Profile, Research) have won some deals in recent months, but clients have sought price cuts to cope with the downturn.

Ayyar said decision-making continued to be slow in large outsourcing deals, as clients were cautious in their spending.