European IT outsourcing saw a record year in 2008, with contracts totalling nearly 72 billion euros, according to the latest figures.

IT outsourcing deals last year were worth 5.6 per cent more than those signed in 2007, while the annualised contract value – which calculates the amount a contract is worth compared to its length – was 14.1 billion euros, the highest it has ever been and a 9.5 per cent increase since the previous year.

European firms signed more IT support deals than US businesses, with 271 new agreements taking place in the eurozone compared to 243 across the Atlantic, data from outsourcing analysts TPI found.

“In many ways, 2009 will be a defining year for outsourcing as the industry steps up to help clients find near-term cost-realignment opportunities,” said Peter Allen, partner and managing director of TPI, in a recent report about outsourcing in the US.

He added that recent unrest in the industry has been alleviated by “larger-valued outsourcing relationships for the near term”.