Costco Plans to Expand India Technology Operations as AI Investments Grow
US retail giant Costco is exploring opportunities to expand its technology operations in India beyond Hyderabad as it accelerates its international growth plans. The company’s first global capability centre (GCC), currently employing more than 70 people, supports global operations and is expected to grow to several hundred employees over the next five to six years, according to Chief Information and Digital Officer Javier Polit.
Costco is increasingly using artificial intelligence to improve productivity, with some technology projects reporting efficiency gains of up to 60%. The Hyderabad centre has developed tools such as a geofencing system that identifies customers approaching stores to improve check-in and checkout processes. The facility will also support data analytics, business software, cybersecurity and digital advertising operations.
The company also plans to strengthen its in-house technology workforce, aiming for approximately 75% permanent employees and 25% contractors, compared with the current near-equal split. Established with support from consulting firm ANSR, Costco’s Hyderabad centre could eventually employ around 1,000 people. The expansion highlights India’s growing importance as a global technology and innovation hub for multinational companies.
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