Printing giant Xerox has confirmed that it will outsource 900 staff to IBM following a review of operations at its facility in Ballycoolin in north Dublin.

Xerox is effectively handing over its entire Dublin contact centre to be run by IBM. The company said the other 350 staff working in Ballycoolin, who are primarily involved in sales and marketing, global services and treasury activities, will be unaffected.

The transfer of staff is expected to happen this September. The 900 affected will be offered the same terms and conditions by IBM and will continue to work in the same location.

Last December, Xerox confirmed it was reviewing operations in Ballycoolin and that the impact on employees would be announced early this year.

The 350 Xerox staff in Dundalk who manufacture colour toners and other equipment are unaffected, as are another 100 Xerox contractors who work in the State.

The transfer of the Xerox workers will make IBM one of the largest employers, with about 4,300 staff.

IBM yesterday forwarded all media inquiries to Xerox and declined to comment.

This is the biggest outsourcing services contract IBM has won in Ireland, although it has similar international deals. It already has a similar business at its Mulhuddart campus, which operates a help desk for a number of clients, primarily based in the Nordic region.

Xerox said it chose IBM because of its global experience and because it shares the "same culture and values".

Globally, Xerox has been through a rough period as it has struggled to adapt to the impact of digital technology on its traditional printing business.

Xerox was established in Ireland in 1962. Following this outsourcing deal, the firm will employ about 800 people.