The outsourcing industry performed poorly in the second half of 2008 as the recession took hold, according to a new survey.

The survey, from sourcing data and advisory firm Information Services Group, shows that that the total value of outsourcing contracts signed in 2008 amounted to nearly €72bn (£68bn) more than the value for 2007, but in the second half of 2008 total contract value dropped by 20%, with contracts totalling €31.3bn (£29.6bn) signed in the last six months of 2008.

There was a trend towards smaller transactions rather than mega deals (those contract awards of €800m [£755m] or more) in the second half of 2008.

Looking at the global picture for the full year, the number and value of mega deals was flat year on year. However, the second half of 2008 showed a sudden pull back in the award of larger contracts with only three mega deals valued in total at about €5.2bn (£4.9bn) signed globally compared with 12 contracts totalling €13.6bn (£12.84bn) in the first six months of 2008.