US based IT outsource provider Cognizant has reported a quarterly profit jump of 16 percent as the European market drives increased sales.

Cognizant achieved 13 new deals in Europe during the last quarter of 2012 with a total of 201 clients added over the year.

The continued impact of the global recession has driven European companies to reduce costs and increase the use of outsourced services, driving long term growth in the market. Increased IT spending is being expected to continue to drive the employment of outsourcing within Europe over 2013.

The company has seen stock rise by 14 percent in the last three months as the IT service supplier continues to outperform expectations, outperforming the fiscal results of rivals TCS and Wipro in 2012.