The first European software company to list on the Nasdaq stock exchange plans to create up to 350 jobs in Dublin by 2007.

Business Objects, a French firm that develops software to help managers extract information on their businesses, said yesterday it was setting up a new European operations centre.

The centre is based in the Park West Business Park and already employs 50 staff. This will rise to 350 staff by the end of 2006, said Mr Jim Tolonen, chief financial officer at Business Objects.

Mr Tolonen said the centre would perform a number of functions such as customer technical support, technology development and treasury operations.

"Almost all the staff that we employ will be graduates with skills in languages," he said. "Skills and the technical infrastructure in Ireland were two reasons we choose to locate here... corporation tax was also a factor."

Business Objects was founded in France in 1990 and retains a headquarters function in Paris. However, it also has a headquarters function based in the US.

By moving its treasury function for the Europe, Middle East, Asia and Africa region to Dublin, Business Objects should be able to substantially cut its corporation tax bill.

However, Mr Tolonen said no single factor was responsible for its decision to locate the centre in the Republic.

Business Objects' software gives managers at companies the ability to extract very detailed information from their technology systems to help them run their businesses. This information is stored in an array of corporate databases and customer relationship management technology systems and is often difficult to extract from old systems.

Business Objects often forms partnership with other software companies such as SAP and Microsoft, who bundle its product into their own software.

The company has a client base of 26,000 customers and 3,900 employees and operates in more than 80 countries. In September 1994, it was the first European company to list on the Nasdaq.

The new Minister for Enterprise, Mr Micheál Martin, said the investment by Business Objects was a significant coup for IDA Ireland and the State.

"It [the investment] is in line with the Government's policy and IDA's goal of attracting high-value, knowledge-based operations and investments from these companies to Ireland," he said.

However neither the IDA's chief executive, Mr Seán Dorgan, or the Minister were able to give any guarantees about bringing new IDA projects to Donegal, which has experienced hundreds of job losses this year.

The impending closure of textile manufacturers Unifi and Fruit of the Loom have prompted public meetings in the county to discuss the lack of job creation.

No IDA projects have been announced for Donegal in 2004.

Mr Martin said there was no big bang solution to the problems of creating jobs in Donegal and the Government would have to look at the region and build expertise and skills among local groups and development boards.