A total of 150 posts are to be created in Dublin through a deal between Microsoft and the SITEL customer services provider.
The contract will lead to the new jobs at SITEL's call centre in the capital to supply customer service and sales support for Microsoft's UK and Irish operations.
SITEL Ireland was set up in 1997 and is a subsidiary of the United States-based SITEL Corporation.
Four years ago the company handled registrations for flotation of Eircom, Ireland's main telecommunications network.
Last night's announcement partly compensated for the loss reported early of 300 permanent and part-time jobs at the Celestica electronics factory in Swords, Co Dublin.
The company said it was closing down the plant, which once had a 1,000-strong workforce, because of the ongoing downturn in the international telecommunications sector.
Production of printed circuit boards will be switched to Celestica locations in other countries.
Deputy Irish premier Mary Harney called the job losses a "shocking blow".
Ms Harney, who is enterprise, trade and employment minister, added: "The telecommunications business around the world has been going through a tough time lately, and the closure of Celestica is yet another symptom of those difficulties."