Logica is cutting jobs in the Netherlands and has stopped recruiting in the rest of Europe.
The company said that attrition rates had fallen from 14 per cent at the end of 2008 to less than eight per cent now.
Logica said: "We are acting decisively to reduce headcount further in the geographies where we see significant weakness. At the end of March, we had around 5,150 employed in our nearshore and offshore centres. We will continue to prioritise growing these centres as onshore headcount declines." UK headcount is likely to remain unchanged.
The outsourcer had 39,812 employees at the end of March, compared to 39,937 at the end of December 2008.
It reported first quarter revenues in line with the same period of 2008 or up 11 per cent thanks to currency movements.
Revenue from outsourcing was up 9 per cent and represented 33 per cent of the total. Consulting and professional services revenue fell 4 per cent.
The company's restructuring programme remains on track and should deliver £75m in cost savings this year.
Looking forward Logica expects continued growth in outsourcing but warned that the market for professional services and consulting remains tough. It does not expect much change in the second half of the year.
Full statement is here.
The company also announced the retirement of board member Roger Payne and Sergio Giacoletto becomes senior independent director, Payne's successor will be announced in due course. ®