India is dominating the UK outsourcing market, as the country's firms continue to win favour with IT managers.

Out of 320 contracts studied by advisory company EquaTerra, 57 per cent had opted for offshoring - a rise of 10 per cent from the previous year. And 100 per cent of these agreements use companies based in India.

The subcontinent's firms are also outpacing their US and European rivals for client satisfaction. Four of the top five ranking service providers are based in the Asian country, according to the study.

"Business people are making the decision to outsource to India because they can’t find the same resources in the UK," said EuqaTerra Europe managing director Phil Morris.

"Indian firms such as Wipro and TCS are achieving real satisfaction in providing skills, flexibility and quality of work and the globalisation of services will require larger, more global suppliers such as Accenture, IBM and HP to reposition their overall delivery models and structures in order to keep pace with newer market entrants," he said.

The EquaTerra survey looked at £34bn-worth of IT outsourcing contracts, equivalent to three quarters of the total market.