Dialog Information Technology has announced the Innovation Factory, which will be established in Melbourne.
The centre is set to create 200 jobs and is expected to start operations in the coming months.
The centre will focus on new business practice areas such as digital, accessibility, cyber security, cloud computing, social media, mobile and analytics.
Dialog managing director Alan Key said: "The Victorian Government put together a strong case to attract Dialog’s development centre into the state and we look forward to seeing both government and industry reap the benefits of the great new innovative solutions that the Innovation Factory will develop for the Australian and international markets."
Dialog IT's investment will also benefit 30 local technology students as part of Dialog's investment and work with Victorian universities.
"Dialog’s Graduate Program will be drawing on the skilled graduates coming out of Victoria’s education sector, growing both them, the local talent pool and further improving availability of highly experienced technologists across the state," Key said.
The new jobs will bring Dialog's Victorian workforce to more than 600 people.
This is part of a partnership with the Victorian government who is investing heavily in the technology sector. The local government has already announced similar investments from companies including Alibaba, Square and Slack.
The Minister for Small Business, Innovation and Trade Philip Dalidakis said: "Dialog’s decision to choose Victoria to expand their workforce by 200 jobs is a huge vote of confidence in the growing talent pool that our local tech sector is producing. With our ability to attract some of the world’s leading tech companies and at the same time help our home-grown talent expand, Victoria is fast becoming the number one destination for business investment across the Asia-Pacific."
Since 2014, more than 2100 technology jobs have been created across the state.
Brisbane-headquartered Dialog IT, which is part of the Dialog Group, saw its revenue rise $8.4 million, or 6.4 percent, to $138.2 million for the year to 30 June 2016.
The Dialog Group's other businesses include Sydney-based quality assurance and software testing company Access HQ, business insight and data management consultancy Catapult BI, multimedia company Icemedia, data management solutions company Moonwalk and Microsoft Gold partner Lynx IT, which was acquired by Dialog in March 2015.