Indian CEO survey: Highlights

Global figures in brackets

At 55% (40%), more Indian CEOs were very confident of growth in the next 12 months than their global colleagues.

At 91% (84%), the number of CEOs with at least some level of confidence for the next 12 months was slightly higher.

In the longer term, no less than 63% (47%) of Indian CEOs were very confident of growth over the next three years.

And an impressive 96% (89%) were at least somewhat confident of growth over three years.

38% (30%) CEOs believe growth in the next 12 months will come from increased share in existing markets, followed by 30% (18%) from new markets, but only 18% (28%) from new products or services.

 

79% (70%) plan to change their company strategy over the next 12 months, but only 11% (13%) in fundamental ways.

71% (75%) of Indian CEOs said they had implemented cost-cutting in the last 12 months, with 63% (66 %) saying they would cut costs in the coming 12 months. Only 12% (49%) said they plan to enter a new joint venture or strategic alliance this year.

55% (53%) of Indian CEOs said they had increased headcount in the past 12 months, and 61% (51%) plan to increase headcount in next 12 months. Just 14% (18%) said they expect to cut their workforce in the coming year.

A massive 92% (34%) of Indian CEOs were concerned about bribery and corruption, and 89% (80%) were concerned about uncertain or volatile economic growth. 86% (56%) were concerned about over-regulation, and 83% (55%) about increasing tax burdens. 80% (58%) were worried about exchange rate volatility, 79% (66%) about government response to the fiscal deficit and debt burden, and 75% (44%) about government protectionism.

95% (78%) want to change their strategies for managing talent the next 12 months, and 93% (67%) of Indian CEOs said they intend to change their approach to managing risk. 83% (35%) want to change in engagement with the board of directors, 76% (50%) in corporate reputation and rebuilding trust.

58% (54%) of Indian CEOs said they wished they could spend more of their own time setting strategy and managing risks, with 54% (41%) saying they wished they could give more time to personal time or community service. 53% (68%) said they wished they could spend more time developing the leadership and talent pipeline in their company.

Global CEO survey: Key takeaways

1. Continued volatility and uncertainty have taken a toll on CEO confidence: only 15 per cent of CEOs expect the global economy to improve this year. Yet 40 per cent of them are confident of delivering growth at the company-level.

    

As Europe suffers and US disappoints, CEOs are holding back their cash reserves as a buffer against economic pullback. They are keeping a close watch on operating costs, with 66 per cent of them planning to initiate cost cuts this year.

 

A third of the CEOs believe their biggest opportunities for growth lie in developing new products and services; 30 per cent want to expand share in existing markets but are looking to grow outside their home base, and building local capabilities.

 

Improved cost structures, and rise in investment and commerce to and from emerging economies is lending support to business optimism. Half the CEOs in developed markets feel emerging economies are more important to their future.

 

While emerging economies will be a key driver, solid growth and rising spending power in more economies around the world, like Indonesia, Colombia and Turkey, for example, are propelling CEOs past a mindset focused solely on the BRICs.

 

The US and Germany were among economies where CEOs are expanding capabilities. China was important to 37 per cent of the CEOs based in developed economies versus 24 per cent of CEOs based in emerging economies.

 

There’s likely to be a modest pull-back on international deal-making over the next 12 months: 28 per cent of CEOs globally plan to complete a cross-border deal in 2012, a decline from the 34% who agreed to complete a deal last year.

 

Cost reduction remains an important driver of innovation. Over half of CEOs (56%) who are changing innovation strategies are pursuing opportunities in new business models. CEOs in communications, media and entertainment are the most active.

 

Instead of exports, companies are designing products specifically for local markets. The advantage of managing a uniform brand across many markets is being weighed against the different needs, cultures and price points of different customer bases.

 

Uncertainty and volatile growth is the key concern of CEOs but three quarters of the CEOs in Western Europe are concerned about instability in capital markets and fiscal deficit, exchange rate volatility is a big concern in Asia-Pacific, Middle East-Africa.

     11.  Talent crunch is beginning to impinge on growth. One in four CEOs said they have had to cancel or delay a strategic initiative     because of talent constraints; 40% of CEOs in the technology industry say they have a missed a market opportunity due to this.