The announcement was made at the 2014 Farnborough Air Show.
The company anticipates the creation of approximately 300 jobs over the next three years, mainly in the aerospace industry, Tech Mahindra said in a statement.
"The centre will provide expertise to both design and manufacturing engineering support to the Canadian customer base," Tech Mahindra Head (North America) Lakshmanan Chidambaram said.
Tech Mahindra has been present in Montreal since 2005 and since then it has been part of the exponential growth journey of the region, he added.
Montreal International, whose mandate is to attract foreign direct investments to the Greater Montreal area, supported and advised the company in this project.
"With more than 42,500 jobs and sales in excess of USD 12 billion, the aerospace sector is home to a complete and competitive supply chain, including prime contractors, high-quality equipment manufacturers and integrators and a network of almost 215 world-class SMEs, mainly established in the Greater Montreal area," Montreal International President and CEO Dominique Anglade said.