Lead
Costco is preparing to broaden its technology operations in India beyond its existing Hyderabad global capability centre as the retailer increases the pace of its international expansion, a senior executive said. The Hyderabad hub, currently home to more than 70 employees, is positioned to support a range of global functions including artificial intelligence and cybersecurity, with plans to grow to several hundred staff over the next five to six years, according to Javier Polit, Costco's chief information and digital officer.
Centre role and technology focus
The Hyderabad capability centre already contributes to global operations and is being used to develop tools intended for deployment across Costco's international business. Polit highlighted that AI has produced productivity improvements of up to 60% in some technology projects, prompting the company to expand the scope of work undertaken in India. One specific example cited is a geofencing tool developed in Hyderabad that detects customers approaching stores to speed up check-in and checkout processes.
In addition to AI and cybersecurity, the centre will support data and analytics, business software and digital advertising operations. That mix positions the facility to handle a combination of infrastructure, engineering and customer-facing digital solutions for Costco's membership-based retail model.
Workforce strategy and contracting mix
Costco said it expects the composition of its technology workforce to shift over time, moving from roughly an even split between employees and contractors today to a future mix of about 75% employees and 25% contractors. The company did not provide a specific hiring target when asked. Polit described the change as part of a strategy to build more in-house engineering and technology capabilities within the retailer.
The Hyderabad centre was established with support from consulting firm ANSR. Previous reporting noted the location could eventually employ about 1,000 people. Company comments in this report reiterate the plan to scale the operation to several hundred employees within five to six years, without giving a precise headcount goal.
Strategic context and international growth
Executives framed the expansion of technology capabilities in India as complementary to Costco's broader international growth strategy. "We are going to grow our business internationally at a greater velocity than we have been in the past. So there will be more presence in this geography for sure," Polit said, noting India is already playing a key role in the retailer's growth plans. The Hyderabad hub is expected to be a foundational element of that increased presence.
Retail model and operational backdrop
Costco operates a membership-only warehouse club format across North America, Europe and Asia and has built customer loyalty around a low-price, bulk-buying model. The company has continued to expand globally, supported by resilient consumer demand, while investing in technology to streamline operations and customer interactions.
Implications
By concentrating AI, cybersecurity and digital-advertising work in Hyderabad, Costco is centralizing higher-value technology work in a market that can support engineering scale. The company expects productivity gains from AI to support the roll-out of tools developed in India across its global estate, while altering its workforce mix as more work is brought in-house.
Note: The company did not provide a specific hiring target for the Hyderabad centre. Productivity gains cited from AI were described as occurring in some technology projects. Future workforce figures and the pace of expansion remain subject to the company’s stated timelines and planning.