News reports cite that global outsourcing transactions were up about 10% in the second quarter. This figure is in comparison to numbers from the first quarter this year. The improvement comes on the heels of contracts inked by the manufacturing and financial services firms, said a research report by the Everest Research Institute.

India was on the top of the list of Asian firms in the outsourcing business and leadership was maintained by bringing in investments in Tier-1 and Tier-2 cities, i.e. Coimbatore, Chennai and Mumbai, the report said. Incidentally, Asia maintains the biggest share of offshore centers developed in the second quarter of this year.

Everest said, of 27 new deals, nine new announcements of deals occurred in India, adding that, offshore suppliers saw a spike in fixed price contract-demand as well. Moreover, global suppliers revealed that 161 new transactions took place in Q2 of 2009 versus a slightly lower figure of 141 in Q1, 2009. Apart from this, ITO transaction announcements were up in the second quarter. Simultaneously BPO transaction announcements fell marginally. Although several pressures were observed, Indian IT suppliers came out ahead of traditional global companies in terms of operating margins.

Nikhil Rajpal, Principal, Everest Group said in an online report by The Hindu Business Line, “There has been significant increase in the market activity as compared to Q1 2009 in terms of transaction signings and captive set-ups. The vendors are seeing some stability in the financial services sector.”

He added, “(Offshore suppliers) expect demand to pick up later this year, provided economic conditions do not deteriorate any further. India-based suppliers are enhancing focus on the domestic market to de-risk business and tap into the local growth opportunities,” reports ChannelTimes.com