Nomura Research Institute, Ltd. and Exodus Communications, Inc. of the United States have agreed to cooperate on Internet outsourcing, the two firms announced Tuesday.

Exodus Communications also announced that it will set up an Internet data center in Tokyo by the end of March to manage and operate corporate Internet sites that are expected to flourish with the rise of Internet commerce and banking in the country.

Under the agreement, the two firms will jointly market and promote hosting services. NRI will offer system solutions, such as consulting and software development, based on Exodus' hosting services. "Under the terms of the alliance, Exodus and NRI are going to work together in joint marketing efforts.

In addition, the two companies are authorized to resell each other's services," said Ellen Hancock, president of Exodus Communication. "Working with NRI will enable us to expand our presence in Japan."

Exodus Communications is a leading operator of Internet hosting services for corporate customers in the U.S. and plans to expand its operation in Asia.