US computer company Dell is to set up a call centre in Glasgow which could eventually employ up to 850 workers.
Computer chiefs have praised Glasgow as location
It will be sited at the former Imperial Tobacco Factory in the city's east end, now a business park.
Dell said that 400 jobs could be created by 2006, with the workforce rising to 850 by 2008.
The Texas-based firm is one of the world's largest makers of personal computers. Government support is being given which could be worth about £7.5m.
A company spokesman said the firm was looking forward to the Glasgow centre playing "a major role" in its further expansion.
First Minister Jack McConnell insisted the challenge now was to build on the jobs boost and bring more companies like Dell to Scotland.
"We have the skills, we have the innovation and, above all, we have confidence and the hunger for success," he said.
"Scotland is the best small country in the world. It is a country that is open for business."
Enterprise Minister Jim Wallace said: "We will continue doing all we can to secure the kind of inward investment that will help Scotland thrive in the world economy.
"We already know that Scotland can no longer compete on cost alone."
He continued: "As a result we must ensure that we provide investors like Dell with a high quality business environment that is adaptable and responsive to the needs of that individual business."
Dell's UK president Paul Bell said: "The opening of the new Glasgow operation will allow for our future growth in the UK, by providing additional sales and customer services capacity to complement our existing and successful sites.
"Dell puts a high value on our business customer sales and support and believe Glasgow is the right choice in delivering this promise."
He added: "We look forward to the Glasgow centre playing a major role in the further expansion of the company."
Workers at the centre will offer customer sales and support for Dell's medium and large business and public sector customers.