Stock Markets November 12, 2026 09:48 AM

Costco Plans Wider Technology Footprint in India as AI Drives New Tools

Hyderabad global capability centre set to scale as retailer leans on AI and cybersecurity for international expansion

By Sofia Navarro
Share
Twitter Reddit Facebook LinkedIn
COST

Costco said it expects to expand its technology presence in India beyond its Hyderabad global capability centre as it accelerates international growth. The centre, which currently employs more than 70 people, supports global operations across artificial intelligence, cybersecurity, data and analytics, business software and digital advertising, and is expected to grow to several hundred employees over the next five to six years. Company executives said AI has delivered productivity gains in some projects and that the firm plans to shift its technology workforce mix toward more full-time employees.

Costco Plans Wider Technology Footprint in India as AI Drives New Tools
COST
Summarize with
ChatGPT Perplexity Claude Grok Gemini

Key Points

  • Costco plans to expand its technology footprint in India beyond Hyderabad as it accelerates international growth; Hyderabad centre will be central to AI and cybersecurity work.
  • Hyderabad global capability centre employs more than 70 people now and is expected to grow to several hundred staff over the next five to six years; a prior projection cited the location could eventually employ about 1,000 people.
  • AI has produced productivity improvements of up to 60% in some technology projects, prompting development of globally deployable tools such as a Hyderabad-built geofencing tool to speed store check-in and checkout; operations supported include data and analytics, business software and digital advertising.

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.

Risks

  • The company did not provide a specific hiring target, creating uncertainty about the exact pace and scale of expansion in the Hyderabad centre - this affects technology services and employment markets.
  • Productivity gains from AI were described as occurring in some technology projects, implying that benefits may not be uniform across all initiatives - this affects technology deployment and operational planning.
  • The planned shift in workforce composition from an even split today to about 75% employees and 25% contractors is a stated target but may involve execution and timing risks as in-house capabilities are scaled - this impacts talent and contracting markets in the technology sector.

More from Stock Markets

US to Finance Preparatory Research into Ibogaine as PTSD Therapy for Veterans Nov 12, 2026 Copenhagen stocks close higher as energy, consumer and chemical groups lead gains Nov 12, 2026 Terawulf Shares Rise After CoreWeave Earnings Lift AI Infrastructure Stocks Nov 12, 2026 Trump Calls for Tim Cook to Replace Jensen Huang as Nvidia CEO Following Resignation Nov 12, 2026 Options Signal a 5.2% Move for Intuit Stock Ahead of Nov. 19 Results Nov 12, 2026