Mathew Vallance, chief executive of Firstsource Solutions, said the joint venture would initially service the needs of Dialog in supporting its customers and then the rest of the Sri Lankan market.
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"We will target the telecoms and media market and the nascent banking and insurance markets," he told a news conference in Colombo.
"Over time we will look at the health care space as well."
Dialog Axiata group chief Hans Wijayasuriya said the firm went into the business process outsourcing (BPO) sector as "we saw the industry as something that would flourish in Sri Lanka many years ago.
"We felt at some point we should join the BPO and ITES (information technology enabled services) sector in a far more aggressive manner.
"We felt we did not have the complete set of expertise and international exposure in terms of international markets to