UK-based digital marketing company SLM Connect is to set up a new base on the Gaoth Dobhair Business Park, in Na Doirí Beaga, Co Donegal.
The expansion plan is supported by Údarás na Gaeltachta and will lead to the creation of 125 jobs.
The new company, SLM Éire Teo, will offer contact centre and Business Processing Outsourcing solutions to its clients from its new facility.
First set up in Manchester in 2008, SLM Connect currently employs 130 people at its contact centre facility in the UK.
The company's founder and CEO Abdul Salam said that after looking at a number of possible options, and after careful consideration, it felt that Gaoth Dobhair would be a great location for the next stage of its development.
"SLM Éire will help us to expand our operations further afield, grow our business and provide us with new opportunities," he added.
SLM Éire Teo will be managed by local Donegal man, James Moran, who is moving home from the UK to manage the business.
The Chairperson of Údarás na Gaeltachta, Anna Ní Ghallachair, said that Údarás looked forward to working closely with the company in the coming months to help it accelerate its business plan and establish its operations in Gaoth Dobhair.