The first minister was quizzed about the outsourcing deal

During his inaugural First Minister's Questions Time, Labour's Pauline McNeill highlighted the announcement by Resolution that 500 jobs would be lost.

In an outsourcing deal with Capita, the posts are expected to be transferred from Glasgow and Birmingham to India.

Mr Salmond said that Scottish Enterprise would support all those who faced losing their jobs.

Resolution which manages funds for Scottish Mutual, Scottish Provident and Phoenix Life Assurance, has unveiled the deal with Capita on Wednesday.

Under the agreement, 2,000 staff will transfer to the giant Capita group.

The strategy for the Scottish economy must be to have a serious competitive edge, affecting not just the financial sector, but so many of our industries First Minister Alex Salmond

Customer service and IT positions will remain in the UK but 'back office work' will be outsourced to India.

Mrs McNeill asked Mr Salmond what the executive would do to stop further outsourcing of jobs abroad.

Mr Salmond said: "The strategy for the Scottish economy must be to have a serious competitive edge, affecting not just the financial sector, but so many of our industries."

He emphasised the "huge success" of the Irish financial sector which has trebled at the same time as the Scottish financial sector has doubled.

He added: "One aspect of that success of course has been their ability to deliver an enhanced competitive position through the progressive reductions in corporation tax."