Costco Eyes Wider India Technology Expansion As AI And Cybersecurity Investments Grow

American retail giant Costco is considering expanding its technology operations beyond Hyderabad as artificial intelligence and cybersecurity become increasingly important to its international business. The company expects its Indian technology workforce to grow substantially over the next five to six years.

Costco’s Chief Information and Digital Officer Javier Polit said the company’s Hyderabad centre would play an important role in supporting its global expansion. The facility currently employs more than 70 people, with staffing expected to rise to several hundred.

The development reflects a wider shift among international retailers. Instead of using India primarily for routine administrative and technology support, companies are increasingly developing sophisticated software and digital services in the country for deployment across their global operations.

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Hyderabad Centre Becomes Part Of Costco’s Global Technology Strategy

Costco established its first Indian Global Capability Centre in Hyderabad with support from consulting firm ANSR.

A Global Capability Centre, commonly called a GCC, is an overseas facility established by a multinational company to manage important business functions. These centres can employ engineers, researchers, cybersecurity specialists and other professionals who work directly for the parent organisation.

Costco’s Hyderabad operation is intended to support technology and business functions across its international markets.

The company’s decision to establish an Indian technology centre was first reported in July 2025. At the time, reports indicated that the operation could eventually employ around 1,000 people.

However, Polit has not provided a new specific hiring target. His latest assessment points towards gradual workforce expansion over several years rather than an immediate recruitment drive involving 1,000 positions.

Costco India’s recruitment activities already include positions involving AI engineering and technology infrastructure.

Published job descriptions indicate that engineers in Hyderabad are expected to help develop systems supporting enterprise AI applications and automated business processes.

The company has also indicated that additional Indian locations could become part of its technology network, although no new city or investment amount has been announced.

AI Tools Developed In India Could Reach Costco Stores Worldwide

Costco’s technology expansion is closely linked to its growing use of artificial intelligence.

Polit said AI had helped improve productivity by as much as 60% in certain technology projects. The company is now looking to develop more digital tools in India that can be used across its international operations.

One example involves technology known as geofencing, which uses digital location boundaries to recognise when a device enters or approaches a specified area.

A retailer could use such technology to identify when customers are approaching a store and help streamline certain stages of their shopping experience.

Costco has developed a geofencing tool in Hyderabad intended to improve customer check-in and checkout processes. The company has not disclosed a complete rollout timetable.

The development also raises questions about location privacy. Depending on how such systems operate, businesses may need to obtain appropriate permissions and explain how customers’ location information is collected and used.

Other planned technology functions include data analysis, business software and digital advertising.

For a retailer operating across multiple countries, these capabilities can help manage large volumes of information, improve operational efficiency and develop more consistent customer services.

Costco Seeks Greater Control Over Technology And Cybersecurity

Another important aspect of Costco’s strategy involves changing the structure of its technology workforce.

The company currently relies on a combination of employees and external contractors in approximately equal proportions.

Over time, it expects employees to account for about three-quarters of its technology workforce, with contractors representing the remainder.

Bringing more technology work in-house can help companies retain specialist knowledge and exercise greater control over important software systems.

This can be particularly relevant in cybersecurity, where employees may be responsible for protecting sensitive business information, monitoring suspicious activity and maintaining systems used across international operations.

However, increasing the number of direct employees does not automatically guarantee stronger cybersecurity.

Companies must also maintain appropriate security controls, restrict unnecessary access and regularly examine how sensitive information is handled.

Costco has not announced that its Indian centre will take exclusive responsibility for cybersecurity across the entire organisation.

Hyderabad Emerges As A Major Destination For Global Technology Centres

Costco’s expansion comes as Hyderabad continues to attract international companies establishing technology and business operations in India.

In December 2025, the Telangana government announced that Costco, Western Union and logistics company Stolt-Nielsen would establish global capability centres in the city.

More recently, consulting firm ANSR projected that Hyderabad could add another 60–70 such centres in 2027.

The development reflects growing demand for Indian professionals capable of handling advanced technology functions rather than only providing outsourced support.

An industry assessment by Nasscom and Zinnov estimated that India’s GCC market could reach between $99 billion and $105 billion by 2030.

For Costco, the Hyderabad operation provides an opportunity to build technology capabilities supporting its international retail business. Whether that expansion extends to additional Indian cities will depend on the company’s future investment and staffing decisions.