As many as 400 jobs will be created over the next two years as technology juggernaut IBM looks to open its first New Zealand delivery centre.
Plans are under way to open the centre at Unitec's Mount Albert campus in February next year - it will employ both professionals and students.
A number of initiatives will be set up to provide students studying IT, business management or communications degrees with experience as part of their study.
It follows a successful model used in the Australian city of Ballarat.
Tertiary education minister Steven Joyce says it's excellent news for students as it'll provide them with valuable experience working in the IT industry, as well as job opportunities when they graduate.
He says it's an example of the Government's move towards matching the skills being developed in tertiary institutions with industry demand.