BearingPoint, the multinational technology consulting firm, is setting up a global technology services group that will create 30 jobs

The firm, formerly known as KPMG Consulting, will use the new unit at its Dublin offices to offer managed technology services and consulting to Irish and European clients.

BearingPoint, which already employs 120 staff in Dublin, said it would hire 20 consultants this year and a further 10 employees during 2004.

The firm offers a range of technology and business consulting services to Irish clients, which include the Department of Foreign Affairs and Irish Life & Permanent.

It is hoping to expand its European business by offering on-site and managed services.

Mr Michael Donahue, BearingPoint's chief operating officer, said the company had chosen the Republic for its investment because of its skilled staff, good telecoms infrastructure and physical security.

"Ireland has a mature technology base and is not subject to power blackouts or telecoms issues as some other countries," he said. "We are very bullish about our Irish resources and in terms of the local economy."

Mr Donahue said the company had already established similar technology services units in China and in India through a partner.

But labour costs were just one part of the equation; other issues such as obtaining international visas for staff were also important.

BearingPoint, which generated $3.1 billion (€2.6 billion) in revenues in the year to the end of June 2003, is building the technology that will enable the Government to issue new secure passports in the next few years.

It has also been shortlisted in a competition to build the core engine for the State's e-government strategy.