An Indian technology giant will create 600 call centre jobs in Northern Ireland, British prime minister Tony Blair announced yesterday.

HCL will expand its operations in Armagh and Belfast, with the precise split still to be decided.

The prime minister confirmed the jobs boost during the launch of the 2006 UK Trade and Investment India Business Awards in New Delhi.

Mr Blair said the move highlighted the strategic importance of the UK for Asian companies seeking business opportunities in the enlarged European Union.

British Secretary of State Peter Hain hailed HCL's decision to increase its investment in Northern Ireland.

"It's a credit to the quality of our workforce that Northern Ireland continues to be an attractive location for outsourced services, in the face of stiff competition from lower waged economies," Mr Hain said.

"This expansion, supported by Invest Northern Ireland, will create at least 400 new jobs in Armagh with the balance at Armagh or Belfast depending on operational requirements," he added.

Invest Northern Ireland has offered £4.68 million (€6.94 million) to assist the creation of the new jobs.

Earlier this year, HCL acquired Armagh-based company, Answercall Direct, and safeguarded 140 jobs.

Shiv Nadar, chairman and chief executive of HCL Technologies, said: "We invested in Northern Ireland with our partners BT in 2001 in an act of faith backing our instincts and strategy, and that of our partner.

"We are proud of what this operation has demonstrated, not only for HCL but also for the entire Northern Ireland and UK community in adding value locally by being part of a global strategy."

Kevin Houston, general manager of HCL's Northern Ireland operation said the group's decision was a vote of confidence. "HCL's Northern Ireland operations have proved that we can deliver high-quality and cost-effective contact services that are contributing to the successful achievement of the company's strategic plans."

HCL Technologies is a leading Indian software company that handles call centre work for several British firms. Its first Northern Irish venture was the acquisition of an existing call centre employing 340 staff.

Since then, employment has grown to 1,940 and it is now one of the top 10 private sector employers in the North.

Mr Blair said follow-on investments like that of HCL underlined the competitiveness of Northern Ireland.

HCL said it was a credit to the HCL's Irish workforce that Northern Ireland continued to be an attractive location for outsourced services "in the face of stiff competition from lower wages countries".

Mr Blair defended European companies that outsource work to lower-wage countries like India, saying it helps firms become more competitive and enriches Europe in the process.

Companies in higher-wage countries have increasingly farmed out any task that can be done over computer or telephone networks to places with lower labour costs.

India appears to be the top destination, with 44 per cent of the global outsourcing market and earning £9 billion annually in revenue from the business, according to India's main software trading body Nasscom.

The movement of jobs has triggered layoffs in Europe, angering trade unions and fuelling opposition to outsourcing.

But Mr Blair, visiting India, told Indian and European business leaders that outsourcing has helped Europe - not just countries like India.

"Companies have used relocation of call centres and used outsourcing in order to build a more effective structure," he said. "That benefits not just the places to which the work is outsourced, but also the companies and people in the UK and Europe."

Mr Blair was speaking at an annual India-European Union business summit, where he urged the governments of India and European companies to further open their respective economies.

Mr Blair arrived in India yesterday after attending a similar summit in China. - (PA)