Indian telecom firm Tech Mahindra will open a call centre in South Tyneside, creating about 500 jobs in the UK.
The regional development agency One North-East has given the firm 2 million pounds grant to bring the company to the area.
Tech Mahindra, which is working in collaboration for BT (British Telecom), will recruit about 500 IT and call centre staff over five years for the centre at the Viking business park in Jarrow.
"We knew when BT announced its presence in such a major contract for South Tyneside, it would act as a magnet for further investment," Councillor Iain Malcolm, leader of South Tyneside council, said.