The teleservices sector is "well ahead of target" to create more than 10,000 jobs within the next two years, the Tanaiste, Ms Harney, said yesterday when she announced 700 new jobs in the sector in Dublin. Ms Harney said that 6,000 people are already employed in 50 pan-European call centres.

"As a country we must now make sure that we are properly positioned to take advantage of the next wave of industrial development, particularly in the high-tech, Internet-based sectors," she added.

The new posts are to be created in two new operations and one expansion. The new operations are: a Barclaycard multi-lingual call centre at St Stephen's Green, which will employ 385 people and service Barclaycard clients in Europe; and a Lotus Group call centre in Warrington Place, Dublin 2, which will employ 110 people. The expansion, in Sandyford, will increase employment in the Softbank Corporation's pan-European teleservices centre, from 25 to 234.

The new Barclaycard operation will be central to the credit card company's European expansion plan. A spokesman for the company said Dublin was chosen because "strong language skills, modern telecommunications facilities and suitable premises are readily available in the city".

The Lotus Group was set up in 1980 and employs 300 people in four call centres in Britain. It is a specialist travel agency dealing mainly in air travel. The Irish facility will take enquiries and bookings, provide travel options and construct itineraries for British clients. The Dublin operation will initially handle overflow business and be linked as a virtual call centre with the British office.