When you will lose your job for redundancy,how should you proceed for next job?

I have been working as a software quality assurance engineer for 4 years. Now from my current company, I have lost my job for redundancy. The company wants to outsource their works to Holland and eliminate the whole team.Now how would i proceed for my next job? will it be a good impression that i have lost my job. Will i tell them that i was actually on a fixed term contract? but even if i do that how will i give reference to my new company. My company does not want to tell anyone that it was a contract role. what can i do now? I already had an interview and I told them the truth. At the begining of the interview, the guy was really interested in me for the role. But when i told him my current situation, he seemed different. He said he will let me know later on. Its a critical situation for me. After 4 years of experience, do i need to start from the scratch? its very upsetting. I am not worried about my qualification but just worried about the reference as it matters. I also have finished my MSc from Queen Mary, University of London in computer Science. I am very depressed now. Is there anyone who can give me good suggestions?!