New Delhi, May 14 Global outsourcing market saw a seven per cent drop in transaction volumes in the first quarter of 2009 against the preceding quarter, according to Everest Research Institute. The global annual contract value (ACV) dropped 16 per cent to $2.97 billion during the period.

According to the latest 'Market Vista: Q1 2009 report' on global outsourcing and offshoring activity tracked by Everest, the transaction volumes in the BPO space fell 15 per cent.

"Revenues of offshore-centric suppliers registered a 2.3 per cent decline, while those of traditional global suppliers declined by 2.2 per cent," Mr Nikhil Rajpal, Principal, Everest Group, said.

The North American outsourcing market witnessed a 15 per cent decrease in transaction volume during the quarter. Although Europe witnessed a reduction in transaction volumes, its ACV was higher than quarter ended December, primarily pushed up by some large deals.