SAP will transfer 42 call-centre jobs from the US to Dublin as part of a salesforce restructuring plan that will result in 88 redundancies at the German software group.

The job cuts, which are modest in comparison to the thousands of jobs lost at SAP's rivals, come as the firm's new chief executive, Mr Bill McDermott, completes a restructuring of its US operations.

The transfer of jobs to the Republic is a welcome boost for IDA Ireland, which is competing against overseas locations for inward investment. Its latest annual report showed employment in the Irish technology sector fell almost 5 per cent last year.

A spokesman for SAP Ireland said the new jobs in the Republic were a result of ongoing upgrading of its operations in Dublin and would boost staff numbers to more than 300 people.

He said further details of the types of jobs that would be created at SAP Ireland's sites in Dublin would be given later in the year.

SAP employs 3,400 staff at its American operations and cut 150 jobs last year. It also sent almost 1,000 staff on unpaid leave to ride out the downturn in the sector.

In addition to the job cuts, the firm is sacking another 44 sales executives for poor performance but will be refilling those posts. A SAP spokesman said it had no plans to cut jobs at its German sales or administration operations.

The company, which is due to report fourth-quarter results at the end of the month, has said it would freeze hiring and adjust staffing in some areas to meet slower demand but would seek to avoid major redundancies.