The value of outsourcing deals signed in Europe last year was $40.9 billion, compared with $26.6 billion in the Americas. The financial services sector dominated demand for business process outsourcing in Europe and elsewhere, TPI said.

“Companies across Europe are outsourcing in ever greater numbers," TPI partner Duncan Aitchison said in a statement, naming Germany, the Netherlands, Sweden, Switzerland and France as being particularly active.

TPI, which monitors contracts worth $25 million and over, estimates active outsourcing contracts worldwide were worth $79 billion at the end of 2007 and predicts the market will grow by 7 percent this year.

“Given the sustained growth rate we are currently witnessing and the level of activity, particularly in Europe and Asia Pacific, we have every reason to expect similar strength in the market going forward," Aitchison said.

Business process outsourcing, a high-value activity in which service providers supply people and manage processes as well as providing basic IT services, grew strongly, while human resources outsourcing fell out of favour, TPI said.

The global share of deals awarded to Indian firms rose to 9 percent this year from 6 percent in 2006. The so-called European big five — Atos Origin (ATOS.PA: Quote, Profile, Research), BT (BT.L: Quote, Profile, Research), Capgemini (CAPP.PA: Quote, Profile, Research), Siemens (SIEGn.DE: Quote, Profile, Research) and T-Systems (DTEGn.DE: Quote, Profile, Research) — were awarded 9 percent of the 2007 outsourcing deals between them.