IBM, the US computer multinational, is to create 750 jobs in Dublin within the next three years in a new customer support office. The multi million pound investment in Blanchardstown, Dublin, is backed by grant aid from IDA Ireland.
Today's announcement brings the number of new jobs announced by foreign companies so far this year to almost 7,000.
IBM and the Minister for Enterprise and Employment, Mr Richard Bruton, are expected to jointly publicise the investment at a breakfast reception in Dublin this morning.
IBM Ireland's spokesman could not be contacted for comment, while IDA Ireland said it was policy not to discuss possible investment decisions.
IBM, which has a huge manufacturing and customer support facility in Scotland, is thought to be in the process of reorganising its European operation.
The company, which has been doing business in Ireland for 40 years, employs 500 people in activities which range from software development, to technical support to sales and marketing.
IBM is the latest in a long line of international companies to decide to open a back office operation in Ireland.
Two months ago, the US computer company, Oracle, said it would build a £50 million telemarketing centre near East Wall in Dublin which will employ 400 people.
Internet service provider, AOL Bertlesmann, is to create 500 jobs in its European customer support centre, which will be adjacent to the Oracle site.
The largest single telemarketing project secured so far is United Parcel Services which is to employ 900 people at its new European customer support centre in Tallaght.
Services jobs in back office and telemarketing companies are a key growth area for IDA Ireland's client companies.
More than 3,000 people work in the tele-services sector, which was initially targeted as a priority five years ago.
A total of 12,000 people work in international services companies supported by IDA. This is an increase of 5,000 on five years ago.
More than one quarter of all jobs created by overseas companies are now in services.
According to IDA Ireland's chief executive, Mr Kieran McGowan, who launched the agency's annual report yesterday, the healthy climate for foreign investment will continue through this year and into 1997.
While technology related sectors would slow down to more normal growth levels next year "office type projects will contribute to strong buoyancy in overall job creation in the medium term", said Mr McGowan.
Last year's record of 11,500 new jobs created by foreign owned companies would be "at least matched and probably increased this year", he added.
The scale of job creation would be influenced by the growth in European markets for products made by foreign firms based in Ireland and by the State's ability to continue to provide the skills and infrastructure needed by such companies at a competitive cost, he said.
Mr McGowan warned there would continue to be a number of cutbacks and some complete closures at foreign owned firms.
Ireland would also lose several large projects because it was not prepared to pay the high level of grants available in some other countries, he added.
Ireland offers low tax rates and a greater range of skills rather than merely large grants, according to Mr McGowan.