According to a press release 93% of CFOs are likely to increase expenditure on business travel and 100% of the Indian CFOs will increase spending and investment, despite the fact that 86% of the Indian CFOs expect Indian economy to be able to increase in excess of the next year, It’s been stated that 79% of the Indian CFOs foresee expansion in the domestic economy as the key driver aimed at business growth and 77% Indian respondents expect their company’s sales to increase the most in the Indian subcontinent
Senior Indian finance executives are being bullish about the domestic economy and the balance is taking a paradigm shift en route for a growth outlook braced with business confidence which is on a new high as has been clearly reflected in the seventh annual American Express/CFO Research Global Business and Spending Monitor. A prodigious 100% entailing the Indian CFOs plan to increase their spending and investment activities this year.
Mr. Manoj Adlakha, Vice President and General Manager, Global Corporate Payments, American Express India, alleged, “There is a strong positive sentiment amongst Indian CFOs towards the domestic economic and business environment. With more than 86% Indian CFOs expecting the Indian economy to expand over the next year, the confidence in the domestic economy is the highest that our report has shown in last three years. A particularly positive sign is the CFO plans to aggressively increase their spending and investments across categories including IT, financial reporting, business travel, etc. Against this background, Indian CFOs will need to implement effective expense management solutions to improve control, build transparency and achieve savings.”
Despite the fact that – CFOs hailing from China, Hong Kong as well as other Asian countries from their barrio have considerably scaled back their expectations for their local economy, 86% of the Indian CFOs have demonstrated what may be called as a leap of faith in their local economy compared to last year.
A fat 77% of the Indian CFOs fraternity anticipates their company’s sales to increase the most in the Indian subcontinent although another 67% expect growth from within Asian markets. Indian CFOs lead the Asian region in terms of their investment plans across various business functions together with transportation and logistics, followed by computer hardware, Enterprise IT, besides business and professional services.
IT evolves as a key spending space
Respondents from their quarter allude to a wide-ranging array of prerequisites for spending on information technology in fiscal 2014, braced with 70% respondents agreeing that information technology will contribute most to their growth strategy by improving efficacy and productivity, and plummeting costs for the company.
77% Indian CFOs have come to an understanding that the use of information technology will go on to improve management decision making, however a 57% look at it for improving financial reporting and analysis. In India, 47% of respondents say their companies have critical needs to pump in the cash both in cloud computing and in mobile technologies.
Mr. Adlakha supplemented, “American Express Global Corporate Payments provides MIS-based proven expense management solutions, which generates management information from card usage, providing an invaluable management tool to help corporations monitor expenditure patterns and identify opportunities for cost savings.”
Spending and Investments aimed at growth and profitability
The report from its part reveals that this year, evolving economies will lead the way en route investing for growth, and mobilize to be able to meet greater than before demand.
Worldwide, 17% CFOs alleged that they will aggressively approach spending and investment to be able to boost top-line revenues. Herein, 30% Indian CFOs and senior finance executives will look at aggressive spending and investment while a higher 57% will approach spending more moderately to support top-line growth while improving profitability.
This points toward a more forward-looking stance for the fraternity finance officers, likened to the conservative view focused on cost control in fiscal 2013.
Across the population of respondents, survey results point out that companies plan to put in more as regards expanding market access (57%), improving business intelligence and analytics (57%), improving production-process efficiency (55%) and new product/service development (55%).
CFOs at present all game for “Can Do” Culture
As companies turn their attention to growth, the role of the finance chief as a catalyst, inducing the company forward, is highlighted more than ever. A “can-do” approach is beginning to pervade more companies in the wake of prospects improving and as customers return. 87% Indian respondents agreed that the finance viewpoint carried an effective and influential factor in strategic operations decisions. And in this regard, executive management tends to give more weight to their CFOs input. 87% Indian CFOs claim to having a strong working relationship with their management. As CEOs torque their companies forward, they will be looking to their finance chiefs to make available credible, balanced advice that can assist them regulate their speed.
Companies brace themselves to get the Maximum out of their Travel Expense
By way of the environment coming across as encouraging for India, a high 93% of Indian CFOs are in the cards to increase spending on business travel in fiscal 2014. Indian CFOs are in the offing to increase spending across four broad categories, viz – travel to meet with current or potential customers (57%), travel to internal meetings and engagements (57%), travel for industry engagement or professional developments (53%) and travel to meet with suppliers or vendors (48%).
“Travel and Entertainment (T&E) remains a business catalyst and companies will continue to invest in business travel to aid growth as reflected in the report. With T&E expenses accounting for the second-largest area of spend for most corporations, Expense management solutions can give businesses transparency, control, savings and rewards, resulting in operating advantages, “states Mr. Adlakha.
The Writing on the wall as of now stands as- Finance executives refrain to spend in traveling in regions where economic growth is expected to be average.