More than 100 new jobs are to be created by a US technology firm making an eight million euro investment in the west.
Genband, a leading developer of Internet Protocol (IP) infrastructure and service solutions, plans to establish its international headquarters and business services centre in Galway.
The positions will be in finance, supply chain management, customer support, software development, HR, legal and administrative activities.
Charlie Vogt, president and chief executive of Genband, said the new facilities were a critical component of the company's continued global strategy and growth.
"Ireland's breadth of high-quality, skilled human resources made Galway an ideal setting for our expansion, particularly when combined with the region's competitive cost structure and leadership as a telecommunications corridor," he said.
"We look forward to being a part of the Galway community and would like to thank the Irish Government and IDA Ireland for their support, which enabled this expansion to come to fruition without delay."
Social Protection Minister Eamon O Cuiv said the move recognised the region's reputation as a leading technology hub.
"Genband's role in transforming telecommunications networks through IP perfectly aligns with Ireland's status as a smart economy," he said. "We look forward to supporting Genband as it develops its operations here."
The firm's move was supported by the Government with the aid of IDA (Industrial Development Agency) Ireland.
Barry O'Leary, IDA chief executive, said the investment was significant for Galway and built on the excellent telecommunications expertise available in the region. "Ireland is experiencing strong growth in international IT services which is contributing significantly to Ireland's impressive export performance," he added.