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Costco sees scope for India tech expansion beyond Hyderabad
Its Hyderabad center has more than 70 employees and is expected to reach several hundred over five to six years, its technology chief said.
Costco sees opportunities to extend its technology operations beyond Hyderabad in India as it steps up international expansion, chief information and digital officer Javier Polit said. The retailer’s first global capability center is contributing to its artificial intelligence and cybersecurity work.
Polit said the Hyderabad operation supports Costco globally and is expected to employ several hundred people within five to six years, compared with more than 70 now. He did not specify a hiring target.
According to Polit, some technology projects have recorded productivity improvements reaching 60% through AI, encouraging Costco to develop additional tools in India for use worldwide. One tool developed in Hyderabad uses geofencing to detect customers nearing stores, helping accelerate check-in and checkout.
The center’s remit will also include business software, digital advertising, and data and analytics, Polit said. Costco established the operation with help from consulting firm ANSR.
Costco also expects employees eventually to account for about 75% of its technology workforce and contractors for 25%, Polit said. The current mix is roughly equal. The anticipated shift accompanies efforts to strengthen the retailer’s internal engineering and technology capabilities.