Indian businesses are displaying a high level of optimism, with an impressive 72 percent anticipating a substantial increase in Business-to-Business (B2B) spending in 2023, according to a survey commissioned by American Express in collaboration with the Centre for Economics and Business Research (Cebr). This optimism exceeds the global average of 49 percent, underscoring India’s economic potential and confidence in its future prospects.
The report reveals that a significant 88 percent of Indian businesses are gearing up to allocate additional resources to technological advancements in the latter half of 2023, with technology investments emerging as the driving force behind this surge in spending.
This technology-centric strategy is primarily motivated by the need to enhance productivity, meet the rising demand for digital products, and improve payment efficiency and speed.
Interestingly, 72 percent of Indian businesses are expecting increased budgets for travel, entertainment, and associated expenses, underscoring the pivotal role that business travel continues to play. Firms are increasingly participating in industry events to network, gain industry insights, and explore potential collaborations.
To broaden their horizons, build connections, and capitalize on fresh opportunities, Indian businesses are also allocating greater resources for both domestic and international business travel.
Furthermore, 68 percent of Indian enterprises anticipate boosting their expenditure in the realm of business and professional services, highlighting the significance of these services. When it comes to fully harnessing technological breakthroughs, IT and technology consulting services constitute 61 percent of total investments. Additionally, up to 59 percent are seeking greater accounting and financial guidance to address potential restructuring and other financial challenges.
Moreover, 79 percent of businesses aim to expand their marketing and advertising budgets to target international markets, promote new products and services, and explore new marketing channels.
In addition to their expected expenditures, Indian businesses also hold positive outlooks for their organizations’ future performance in the coming year, with a remarkable 88 percent expressing optimism, surpassing the global Trendex average of 77 percent.
Manish Kapoor, Vice President and Head of Global Commercial Services (GCS) at American Express Banking Corp., India, highlighted the increasing trend of payment automation among Indian businesses. He pointed out that a significant 84 percent of Indian businesses have taken steps to partially automate payments to their suppliers, with an impressive 39 percent achieving full automation of their payment processes. Enhancing payment security is a top priority for 92 percent of Indian businesses, signaling a heightened awareness of secure financial transactions.
Furthermore, 90 percent of organizations recognized the growing importance of managing cash flow and working capital over the past year.
The survey also indicates a growing trend in payment automation, with 84 percent of Indian businesses reporting at least partial automation of supplier payments and 39 percent reporting full automation. Companies that have embraced automation report 58 percent faster and more accurate billing and 54 percent fewer errors made by humans.
Looking ahead, 86 percent of Indian businesses intend to initiate automation for the process of collecting payments from customers, while 83 percent aim to increase the level of automation used for payments to suppliers. Additionally, 34 percent of those who have not yet automated their payments are actively seeking partners to help streamline their payment processes.
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