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Almost 300 new jobs are to be created in Londonderry.

Waterford-based firm Rigney Dolphin, which provides customer service centres for other companies, will initially be based near Altnagelvin Hospital.

The company has received £1.2m from Invest NI, and is expected to generate over £4m annually over the next three years.

Enterprise Minister Arlene Foster said the announcement was "good news at a challenging time for the economy."

"Rigney Dolphin will offer new employment and career development opportunities and deliver a considerable contribution to the local economy.

"The project is the latest in a series of inward investment successes that Invest NI has secured, and it further reinforces our growing reputation as a high quality, cost-competitive location for global businesses."

The Chief Executive of Rigney Dolphin, Celine Fitzgerald, said Derry offered "great potential" for the company.

"Establishing this customer service centre allows us to more closely service our Northern Ireland clients and is an important strategic development for us as we seek to expand our customer base into the UK.

"We are confident that the new operation will enhance our ability to deliver the highest level of customer care while retaining a sharp focus on growth."

Sinn Fein MLA Martina Anderson said the announcement was good news for the city.

"I have been quite critical of Invest NI's role in the north west and in Derry, and I have been on their case and rightly so, but I do acknowledge the role they have played in bringing about this announcement.

"This will bring 300 jobs to the city, and there are a lot of people who will welcome this opportunity to find employment.

"It's also going to bring disposable income into our town centre and our night-time economy."

Rigney Dolphin currently employs more than 1,200 people in Waterford, Dublin and Dundalk.

Its clients include BMW, Carphone Warehouse, Meteor and Airtricity.

The Derry office is expected to move to a permanent location in the city centre as soon as possible.