Hewlett-Packard is to create more than 140 new jobs at its Leixlip plant for software and computer science graduates over the next three years.

This will be in addition to 300 jobs in ink-jet manufacturing and 100 jobs in sales and marketing as part of the company's expansion here. It will bring Hewlett-Packard's workforce in Ireland to 2,100 next year.

The latest jobs will be in Hewlett-Packard's newly integrated European outsourcing centre, marking a new direction for the company's activities in Ireland.

It is part of Hewlett-Packard's move to develop its e-commerce services, where companies across Europe will outsource elements of their IT functions, in particular Internet-based services.

It is currently Hewlett-Packard's fastest-growing business segment, increasing at annual rates of 66 per cent in Europe.

According to Ms Fiona Fox, services and support manager, the new business could generate up to $1 billion (€980 million) for Hewlett-Packard in the first year.

At present the world market for outsourcing is estimated at $65 billion, and is growing by 35 per cent annually.

"Because of a worldwide IT skills shortage, combined with dramatically increased competition, it no longer makes sense for companies to manage day-to-day IT systems in-house," Ms Fox says.

Hewlett-Packard will employ intelligent brokering technology which will equip clients with the means to conduct high-speed Internet business.

The European outsourcing division in Leixlip recently won a $10 million e-services deal with IPC electric, the digital trading arm of IPC magazines, the largest consumer magazine publisher in Britain. Speaking at the official launch of the centre, the Taoiseach, Mr Ahern, said: "It is a coup for Ireland's growing international reputation that a global Internet leader such as Hewlett-Packard has selected Leixlip to set up a strategically important operation."

The European outsourcing centre has been strongly supported by the IDA because it represents the type of model the Government has been encouraging inward investors to adopt.

The strategy hopes to add value to the activities of multinational manufacturing operations here by focusing more on intelligence-based skills. EMC, which is based in Ovens in Cork, is also operating a similar outsourcing service at on a trial basis.

This latest development brings Hewlett-Packard's investment in Ireland over the past four years to more than £400 million.