Global coffee chain Starbucks is planning to establish its first corporate technology office in India as part of a broader strategy to reduce costs and bring more technology operations in-house.
The new technology hub is expected to be launched during the company’s fiscal year 2027, beginning in October 2026, according to an internal message from Chief Technology Officer Anand Varadarajan cited in media reports. The company is expected to begin hiring for technology roles once it finalizes the office location later this year.
The India office will mark Starbucks’ first co
rporate office presence in the country and is aimed at strengthening its global technology capabilities while lowering operational expenses.
As part of the move, the company plans to bring back several technology functions that were previously handled by third-party contractors. The roles had originally been outsourced during an earlier restructuring exercise, but Starbucks is now reversing that strategy to reduce dependency on external service providers and improve operational efficiency.
In the internal communication, Varadarajan reportedly said the company is focused on reducing reliance on outside technology vendors and building a stronger multi-site technology structure. He also noted earlier that third-party providers often add cost markups, which Starbucks now aims to avoid through direct hiring.
The company currently works with technology service providers across multiple countries, including India. A Starbucks spokesperson said the decision to internalize some of these roles is intended to create a closer connection between teams and the work being delivered.
The development comes amid Starbucks’ wider global restructuring and cost optimization programme aimed at cutting nearly $2 billion in expenses. Last month, the company announced plans to move around 270 technology roles — roughly 20% of its tech workforce — to a new office in Nashville, while also carrying out layoffs in certain technology divisions.
Since February last year, Starbucks has reportedly eliminated more than 2,000 jobs globally, including around 300 positions earlier this week.