HCL Technologies, one of India's leading information technology companies, signed an agreement Friday with Toshiba Information Systems (Japan) Corp. to set up an offshore development center to provide embedded software and applications solutions for the Japanese market.

The offshore development center for Toshiba Corp. will be located at HCL Tech's software development facilities in Gurgaon and Noida on the outskirts of the Indian capital.

The center will have 38 engineers working on five projects to develop embedded software and application solutions in the fast growing areas of mobile and wireless technologies, according to Shiv Nadar, HCL Tech's president.

"We are sure that the HCL Tech team with their technical expertise, especially in the area of embedded software, will be able to support our technology strategy and plans and additionally provide us a significant time-to-market advantage," Toshiba Information Systems President Akira Fujimasa said.

The move is HCL Tech's first into the Japanese market for embedded technology.

The alliance could lead to significant business from the embedded software technologies area in the next few years, Nadar said, noting the mobile service market in Japan is fast expanding, with wireless Internet playing a major role in delivery of services.