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Costco eyes broader India tech footprint as AI bets grow

By · Published by Everything Blog

In short

The retailer's initial technical center in Hyderabad currently employs over 70 people, with leadership planning to scale the workforce to several hundred within five to six years. Key innovations developed by the team include geofencing tools that recognize nearby shoppers to accelerate the check-in and checkout experience. Costco is also restructuring its technical talent model to favor permanent internal staff over third-party contractors as these digital initiatives advance.

Key points

  • Costco is planning to expand its technological operations into new Indian cities beyond i…: Costco is planning to expand its technological operations into new Indian cities beyond its initial hub in Hyderabad.
  • Engineering teams in India are actively creating globally deployed retail software, inclu…: Engineering teams in India are actively creating globally deployed retail software, including automated geofencing check-in tools.
  • The retailer is systematically transforming its offshore footprint to internalize core en…: The retailer is systematically transforming its offshore footprint to internalize core engineering talent across cybersecurity, AI, and business software.

Sources checked by our analysis pipeline: 1

HYDERABAD, Nov 12 : US retailer Costco sees room to expand its technology presence in India beyond Hyderabad as it accelerates international growth, with its first global capability centre playing a key role in artificial intelligence and cybersecurity, a top executive said.

The Hyderabad centre, which employs more than 70 people, supports global operations and is expected to grow to several hundred staff over the next five to six years, Javier Polit, Costco's chief information and digital officer, told Reuters on Thursday. He did not give a specific hiring target.

"We're going to grow our business internationally at a greater velocity than we have been in the past. So there'll be more presence in this geography for sure," Polit said, adding that India was already playing a key role in the retailer's growth plans.

AI has delivered productivity gains of up to 60 per cent in some technology projects, Polit said, prompting Costco to build more tools in India for global deployment, including a Hyderabad-developed geofencing tool that identifies customers approaching stores to speed check-in and checkout.

The Hyderabad centre…

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