New Delhi: The CEOs of some of the largest businesses in India are confident and ready for a recovery that is digitally driven and purpose-led to build better and stronger than ever before. Having identified operational risk as the biggest threat to organisational growth they are ready with aggressive growth strategies while also focusing on building digital resilience along with agility.
The ‘KPMG 2021 India CEO Outlook: Towards a digitally driven and purpose-led recovery’, gathers viewpoints on the future from 125 CEOs in the country.
82 per cent CEOs in India have confidence in the growth prospects for their company. This number is marginally lower compared to where it stood in March 2021 this year at 92 per cent (Basis the March 2021 Pulse survey) and much higher than 42 per cent last year in (August 2020). Despite this, they are ready to face all kinds of risks and disruptions to recover better.
The survey found that leading CEOs in India are looking to sharpen their digital edge further. Having focused on accelerating digital transformation for the last 18 months, CEOs in India are now focusing on building digital resilience along with agility. About two-thirds of CEOs in India (64 per cent) are ready with a plan to address a ransomware attack if faced with one.
The results of the survey also show that the path to recovery is guided by purpose. Even though ESG (Environmental, Social and Governance) continues to be a business priority for CEOs in India, the focus towards the social component of their ESG program has decreased significantly after the second wave of COVID-19.
55 per cent CEOs in India showed greater confidence in the prospects for the global economy and expressed readiness to combat risks and disruptions to make progress faster.
Furthermore, 9 out of 10 CEOs in India are slightly more optimistic that the headcount of their organization will increase over the next three years, and hence are investing more in developing their workforce’s skills and capabilities. Interestingly CEOs globally (60 per cent) are more focused on buying new technology.
35 per cent CEOs in India believe that organic methods such as innovation, Research and Development (R&D) and capital investments will be crucial for organizational growth objectives for the next three years.
At the same time, the survey found high M&A appetite, with 55 per cent CEOs in the country stating they are likely to undertake acquisitions which will have a significant impact on the overall organisation (higher than CEOs globally at 50 per cent).
Despite a solid roadmap to recovery, pandemic-related issues are still a cause for concern for CEOs in India. While supply chain, cyber security, regulatory and environment continue to be risks to organisational growth, 19 per cent CEOs in India (up from 6 per cent in March 2021 and 11 per cent this time last year in August 2020 perceive the most threat from operational risks.
Whereas the risks perceived by CEOs in India in the areas of cyber security (14 per cent), regulatory (13 per cent), supply chain (10 per cent), reputational risk – including misalignment with customer/public sentiment (10 per cent) and climate change (6 per cent) has either declined or remained similar to findings from March 2021 this year.
A sectoral view on risks in India reveals that at 32 per cent, operational risk is highest for the manufacturing sector, compared to only 9 per cent for the infrastructure sector and 17 per cent for the energy sector.
Arun M. Kumar, Chairman and CEO, KPMG in India said: “While the global crisis has led to a significant decline in confidence in organisational and sectoral growth, CEOs in India much like their global counterparts, are quite optimistic about the prospects for the global economy. Living through an unprecedented crisis, they had to constantly reassess their strategies for business continuity and growth.”
“With the threat of new variants and advent of a third wave in India expected anytime now, we may not be back to business as usual just yet. But what makes me immensely happy is that the CEOs in India are ready to strategize and combat operational risks despite the demanding times. Over a year later, we now have the opportunity to build a stronger, more sustainable future only if we work together, and most importantly, build back better.”
IANS
