Dell may cap the total number of staff it employs at its call centres in Bray and Cherrywood because of the higher cost of doing business in the Republic compared to Asian competitors such as India.

The US computer firm, which employs about 1,000 full-time staff at its Irish call centre sites, will also continue to relocate further lower-skilled business functions to Asian countries in order to reduce costs, according to senior executives who met in New York this week to discuss business strategy.

"There is tremendous opportunities to tap into talent in India, South America, Russia and China. These are all emerging markets and emerging economies with tremendous talent," said Mr Kevin Rollins, Dell's chief operating officer, who is responsible for the day-to-day operations of the firm.

"Our business is going to migrate to these countries as a natural course of international expansion."

Dell has already relocated some of its technical support activities for the European region to India from its Irish call centres. It also recently capped employment at its main US call centre in Austin, Texas, in favour of hiring employees in lower-cost locations, including India.

When asked if Dell would cap employment at its Irish call centres, Mr Rollins said the firm would have to wait and see. "We haven't said that yet but we will have to see as we work with the IDA and others to maintain cost competitiveness. That will be a discussion point," he added.

Mr Rollins's comments will raise concerns at Government level following a spate of job losses in the tech sector over the past two years. It also follows Dell's decision to lay off up to 30 staff at its call centres in Bray and Cherrywood last month.

There is a growing trend towards outsourcing to low-cost states in Asia and the Far East.

Last month, another US firm, Honeywell, relocated 63 jobs to India from Waterford, citing the lower cost of software development. British Telecom also recently announced it would set up call centres in India.

However, Mr Rollins was more upbeat on the cost-competitiveness of Dell's manufacturing operations in the Republic, based in Limerick, which employ more than 3,300 staff. "I would say that the manufacturing centre is doing quite well in terms of cost competitiveness but there is an advantage in that you are closer to the continent. Asia, which is the real competitor for Ireland, is further away so there is a freight cost advantage that Ireland has. But when you come to call centres that is not as clear."

Meanwhile, financial accounts filed by the US group show Dell Computer Ltd and Dell Direct, both registered in the Republic, posted revenue growth of 35 per cent and 40 per cent respectively.