Starbucks is expanding its India footprint beyond coffee shops, with Chennai set to host a technology centre supporting its global business. The US coffee chain’s first global capability centre (GCC) in India is expected to create around 800 technology jobs, the Tamil Nadu government said.
Starbucks and the Tamil Nadu government signed a Memorandum of Understanding (MoU) for the project on Monday in the presence of Chief Minister C Joseph Vijay. This will be Starbucks’ first GCC in India and will be separate from its retail partnership with Tata Consumer Products. Starbucks operates around 500 stores in India through the joint venture.
The Chennai facility will support the company’s technology and global business requirements. GCCs have become an important part of the technology operations of global companies, with centres in India increasingly handling areas such as software, finance, product development and research.
The announcement comes shortly after Walgreens said it would establish its first India GCC in Chennai. The US healthcare and pharmacy company is aiming to create more than 250 jobs during the first year. Chennai has also emerged as a base for technology and support operations of companies such as Citi, Barclays and American Express.
Why did Starbucks choose Chennai?
Starbucks’ decision comes as Tamil Nadu seeks to attract more global companies to build technology and business operations in the state. Anand Varadarajan, chief technology officer at Starbucks, said the company sees India as an important market for its technology operations.
He pointed to Chennai’s technology talent, infrastructure and employee retention as factors behind the decision. He also said incentives offered by the Tamil Nadu government would support the company’s plans.
“Chennai has abundant skilled tech talent, employees here tend to stay longer with companies (less attrition), the state has excellent infrastructure, and the incentives offered by the Tamil Nadu government will help in finding new solutions and growing the business,” Varadarajan told ANI.
Starbucks’ technology operations globally
The Chennai centre will become part of Starbucks’ wider technology and corporate support network. The company has its global headquarters in Seattle, Washington, which continues to house technology and other corporate functions.
Starbucks is also building a larger corporate presence in Nashville, Tennessee. The company said in April that it would invest $100 million in the city and have up to 2,000 employees there over the next five years.
The Nashville operation includes technology and supply chain teams, along with other corporate functions. Starbucks has also been moving some roles from Seattle to Nashville as part of the expansion.
The company’s technology teams work across areas including engineering, digital products, enterprise technology, artificial intelligence, infrastructure and supply-chain technology. Starbucks’ career listings currently show technology positions in both Seattle and Nashville. The Chennai GCC will add an India-based technology centre to this network, giving Starbucks access to India’s large pool of technology professionals while supporting its operations globally.