CHENNAI: The US retailer giant Costco Wholesale Corporation’s plan to set up a global capability centre (GCC) in India, as reported by Reuters on Tuesday, marks its formal entry into the country’s business landscape. The centre will focus on technology and research operations, working in close collaboration with the retailer’s global teams.
According to reports, the GCC will initially employ 1,000 professionals, with plans to scale significantly in the coming years. This move is expected to generate a meaningful impact on India’s job market, particularly in the technology and services sectors, say analysts.
The direct hiring of skilled professionals in areas such as software engineering, data analytics, cybersecurity, and research and development will not only provide employment opportunities but also set benchmarks for compensation and career growth in the industry, they believe.
Strategic context and industry impact
India has emerged as a global hotspot for GCCs, with over 1,600 centres currently operating across major cities. The sector has added more than 600,000 jobs between 2019 and 2024, and total GCC employment is projected to reach 2.8 to 4 million by 2030. Costco’s decision to establish its capability centre in India aligns with a broader trend among global retailers and consumer companies seeking to leverage India’s skilled workforce, cost advantages, and innovation capabilities.
Retail-focused GCCs, in particular, are gaining momentum, with forecasts suggesting that India could host over 90 retail and consumer goods GCCs by 2028. These centres are increasingly evolving into strategic hubs for product development, customer experience, supply chain analytics, and AI-driven operations.
Direct and indirect job gains
The direct creation of 1,000 high-quality jobs by Costco is only the beginning. As the GCC expands, further employment will be generated through ancillary services such as facility management, IT infrastructure, training, and logistics. Moreover, this will drive demand for niche skill development and certifications, creating additional opportunities for educational institutions and upskilling platforms.
The rise of GCCs has also raised salary benchmarks in the tech sector. Professionals in these centres often earn 20–25% more than their counterparts in traditional IT services firms, due to the focus on high-value functions and global exposure.
State-level and regional benefits
Indian states such as Karnataka, Tamil Nadu, and Maharashtra are actively promoting GCC investments. For example, Karnataka alone aims to create 350,000 new jobs through its GCC policy by 2029. Costco’s entry could further boost such state-level initiatives, contributing to regional economic growth, infrastructure development, and talent retention.
Costco’s upcoming capability centre, most likely at Bangalore, is poised to deliver a strong boost to India’s employment landscape, particularly in the high-skill technology and research domains. With plans to scale beyond the initial 1,000 hires, the initiative signals growing global confidence in India as a hub for innovation and operational excellence. Beyond direct job creation, the move is likely to generate wide-ranging benefits including skill development, salary growth, and support for the expanding ecosystem of global capability centres in the country.