A Swiss firm has opened a software development centre which will create 500 jobs in Scotland's capital.
Avaloq Innovation chose Edinburgh for the centre because of the high number of IT professionals in the city.
The company, which creates software for banks, will employ 400 software engineers during the first four years, growing to around 500 in four to seven years. It plans to recruit 75 graduate trainees in the first year.
Finance Secretary John Swinney opened the new facility. He said: "This is only the second such site for Avaloq anywhere in the world and the first outside their home country of Switzerland.
"Avaloq have chosen to locate their new software development centre in Edinburgh and to recruit 75 graduates from our universities, which is testament to the high quality of Scottish education and enhances the strength of the city's international reputation for finance and IT services."
Scottish Development International and Scottish Enterprise have been working with the firm since November 2010, providing advice on recruitment and location.
The project has also been assisted with a Training Plus Grant of £1.74 million from Scottish Enterprise.
Mr Swinney added: "More than 100,000 people are employed in Scotland's software industry, which has estimated revenues of over £5 billion, and Scotland is one of Europe's leading financial centres.
"Scotland's place in the global economy is not just restricted to our export markets. We are also making great effort to attract international investment. Scotland continues to punch above its weight as a location for Foreign Direct Investment (FDI).
"The 2011 Ernst & Young UK Attractiveness Survey report concluded that Scotland was the leading location for FDI in the UK in terms of employment generation. Avaloq's decision is a vote of confidence in Scotland."