Its certainly possible to do what you're speaking of. Are the data values a simple look-up to the contacts? If so, I'd think you could do this through workflow rather than using a trigger.
However, If determining who the invitees are involves a query or using more sophisticated logic, then an "after insert" on Event trigger which sends emails to the list of invitees would seem more appropriate for your purpose.
Edited to add
Even if on the Force.com platform using Salesforce for Outlook, I can't tell you how to access a user's calendar. However, you could still implement a trigger that could email an invitation to users, so they could add the event to their calendars. I believe you'd want to create a template for that purpose so it was clear it was an event invitation.
The code would look something like this:
// This is for a SINGLE email to all recipients in your list
// From your query results, assembled string that holds the email
// addresses to which you are sending the email.
String[] toAddresses = new String[] {'[email protected]'};
String[] ccAddresses = new String[] {'[email protected]'};
// First, reserve email capacity using size() of query results list
Messaging.SingleEmailMessage mail = new Messaging.SingleEmailMessage(queryresults.size());
// Now create a new single email message object
Messaging.SingleEmailMessage mail = new Messaging.SingleEmailMessage();
// Assign the addresses for the To and CC lists to the mail object.
mail.setToAddresses(toAddresses);
mail.setCcAddresses(ccAddresses);
// Specify the address used when the recipients reply to the email.
mail.setReplyTo('[email protected]');
// Specify the name used as the display name.
mail.setSenderDisplayName('Event Organizer');
// Specify the subject line for your email address.
mail.setSubject('New Event Created : '+ Event.Name +' '+ Event.Id);
// Set to True if you want to BCC yourself on the email.
mail.setBccSender(false);
// Optionally append the email signature to the email.
// If true, email address of user executing Apex Code is used.
mail.setUseSignature(false);
// Specify the text content of the email.
mail.setPlainTextBody('You're invited to a new event: ' + Event.Name + ' ' + Event.Id);
// Optionally, you can specify the HTML template you want to use
mail.setTemplateId(value ForId of Event Template);
// Specify the HTML content of the email.
mail.setHtmlBody('You\'re invited to a new event:<b> ' + Event.Name + ' ' + Event.Id + ' </b><p> 'To view the details <a href=https://(your salesesforce na1 instance or URI /'+event.Id+'>click here.</a>');
// Send the email you have created.
Messaging.sendEmail(new Messaging.SingleEmailMessage[] { mail });
It would seem to me that with the right template, the people in your org would be able to use the email as either a meeting invitation which they can calendar or else as a link to an event they can then add to their calendar. I know nothing of how Outlook for Salesforce works to give you any idea of how to link into their API to do anything other than this.