However, the global transaction volumes reached about USD 2.7 billion in annual contract value (ACV) in Q3 2011, up six percent quarter-on-quarter, primarily due to signing of a few large size contracts, he added.
Talking about the quarters ahead, Singh said, it is still early to comment as we need to see a few more quarters to determine if this is a momentary blip or the beginning of a downturn trend.
Transaction volumes fell in both IT outsourcing and BPO markets by seven percent and 12 percent, respectively. However, the ACV for IT outsourcing increased 14 percent in Q3 2011 q-o-q, while for BPO it was down by 50 percent sequentially.
North America and Europe witnessed marginal reduction in transactions, while the UK and rest of world (RoW) saw significant decline of 22 percent and 15 percent, respectively.
There was also increased activity in the captives as 20 new centres came up in Q3 compared to 4 new centres and 9 expansions in Q3 2010.
A captive unit is a business unit of a company functioning offshore, retaining the work and close operational tie-ups within the parent company.
Sing said, earlier it was mostly the banking and financial services which were setting up captives, but now we see newer verticals like pharma and manufacturing also setting up centres.
Also, there is additional work and new geographies being looked at for these captives, he added.
Singh said, from an India perspective, the country remains competitive as an offshore delivery location with buyers and service providers continuing to establish delivery centres in multiple cities in India. (via)