The group will create 500 customer-facing jobs - split between call centre and shop staff - as it returns much of its customer services focus to the UK.

A spokesman added that the group's "intention" is to eventually have all customer-facing queries dealt with in the UK.

Other major companies - such as high street bank Lloyds TSB last year - have stopped using Indian call centres to deliver a better standard of service to UK customers. Former Powergen firm E.On also made the move in 2006.

At Orange, the first to benefit will be the mobile giant's contract customers - more than a third of its base.

Although Orange emphasises it is not calling a halt to its outsourcing activities altogether, the spokesman added that the call centre decision would give it a "bit more control" over its customer services operation.

The exact timing of the move also remains unclear due to the existing agreements which the company has in place with its Indian subcontractors.

The move follows an earlier Orange announcement that it planned to axe up to 450 jobs under an overhaul of the UK business.

The cuts will come in administrative and management areas.

Orange, which is owned by France Telecom, has 15.8 million mobile customers and 1.1 million broadband users in the UK.