Microsoft (China) Co.,Ltd. signed a memorandum of understanding (MOU) with the Jinan municipal government Monday, projecting to build a branch office in the capital of Shandong Province, according to a newsletter released by the government Tuesday.

Microsoft will cooperate with the Jinan government on the development of the information technology (IT), service outsourcing, cloud computing and personnel training.

According to the newsletter, in the next five years, Microsoft will attract over 40 IT and outsourcing companies to Jinan, creating job opportunities for 15,000 people, and bringing revenue of up to 5 billion yuan ($748 million) to the city.

The company also plans to carry out similar projects with the governments of Dongguan, Xi'an, Qingdao and Nanjing in 2011.