CFOs mulls increased hiring this year: Study
Bullish on economic growth, majority of finance executives in India are planning to increase hiring in 2010, says a study.delhi Updated: May 19, 2010 19:39 IST
Bullish on economic growth, majority of finance executives in India are planning to increase hiring in 2010, says a study.
According to an annual survey by American Express/CFO about 78 per cent of finance executives from India expect economic growth in the year ahead.
While globally 71 per cent of CFOs expect economic expansion in their countries over the next 12 months and only 10 per cent expect contraction.
The majority or about 85 per cent of Indian executives surveyed are planning to increase their headcount during the year.
"In general, respondents in India are more likely than their peers in other countries to say they expect their companies will begin hiring relatively soon—by the third quarter of 2010," the study said.
The survey was conducted among 479 senior executives at large international companies in the US, Canada, Mexico, Europe, Asia and Australia. The company's revenues range from USD 500 million to more than USD 20 billion.
The report said that 92 per cent of the respondents in India have seen or expect to see a sustained increase in demand for their companies' products and services in 2010.
According to the study financial executives in Asia and Australia see the brightest outlook for economic recovery, compared to their peers in other countries, and plan to invest in growth by actively tapping new markets, invest in enhancing production capacity and in new product or service developments.
The brightest outlook for economic recovery comes from Asia and Australia – 83 per cent of executives in Australia, 87 per cent from Hong Kong, 82 per cent from Singapore.
"We're seeing a significant shift to a more positive outlook among finance executives as companies have moved from simply surviving the present to investing in growth for the future," Head of Global Commercial Card at American Express India Manoj Adlakha said.
About 61 per cent of Indian finance executives surveyed plans to increase investment in the development of new products and services as compared to 49 per cent globally.
In addition, the report said that 56 per cent of Indian respondents aim to expand through increased sales and marketing activities and 36 per cent expect to increase investment in merger and acquisition activities to drive growth.
The survey also revealed that business travel spending is beginning to stabilise after experiencing a dramatic slowdown during the recession. The study found that 89 per cent of executives plan to maintain or increase business travel spending compared to the last year.