《畢馬威：2024年印度CEO展望報告（英文版）（22頁）.pdf》由會員分享，可在線閱讀，更多相關《畢馬威：2024年印度CEO展望報告（英文版）（22頁）.pdf（22頁珍藏版）》請在三個皮匠報告上搜索。

1、KPMG 2024 IndiaCEO Outlookhome.kpmg/inOctober 2024KPMG.Make the Difference.Leveraging AI to steer global challenges2KPMG 2024 India CEO Outlook 2024 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership,and a member firm of the KPMG global organization of independent mem

2、ber firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.15Contents030509 13ForewordEconomic outlookTalentEnvironmental,social and governance(ESG)Exploring opportunities for growthMethodologyTechnology and generative AI19203KPMG 2024 Ind

3、ia CEO Outlook 2024 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership,and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Driving i

4、nnovation and growth amidst uncertaintyDriving growth amidst uncertainty In todays evolving landscape,rapid technological advancements and geopolitical uncertainties continue to shape our reality and amongst these challenges India faces a critical mandate to drive innovation and secure sustainable g

5、rowth.As per our survey,despite the complexities,80 per cent of CEOs in India compared to 72 per cent of CEOs globally express confidence in the growth prospects for the global economy over the next three years.Driving innovation in a complex worldCEOs are aware of the threats posed by emerging tech

6、nologies,cybersecurity risks,and environmental changes.However,their outlook remains optimistic,with 22 per cent prioritising mergers and acquisitions alongside organic growth as key strategies for the future.This commitment to innovation extends to generative AI,where an impressive 70 per cent CEOs

7、 in India are increasing their investments,significantly more than their global counterparts.This focus reflects a determination to enhance operational efficiency and profitability,even as challenges like regulatory hurdles and skill shortages persist.Cybersecurity:A growing concernWhile the potenti

8、al of AI is evident,it is important to note that only 38 per cent CEOs in India feel prepared for potential cyber-attacks.As a result,many leaders are fostering a cybersecurity-focused culture withintheir organisations,signaling a shift towards safeguarding digital infrastructures as they embrace ne

9、w technologies.Talent development:The path forward78 per cent CEOs in India expect the return to office of overall workforce underscoring the importance of personal interaction in work culture.In addition to this,93 per cent of leaders in India expect to expand their workforce,highlighting the urgen

10、t need to invest in employee skills development.They believe,addressing the skills gap and an aging workforce is not merely a strategic imperative,it is essential for sustained growth.Commitment to ESG initiativesEnvironmental,social,and governance(ESG)strategies are increasingly shaping CEO priorit

11、ies.A substantial 75 per cent of CEOs in India have adapted their ESG communication in the past year to align with evolving stakeholder expectations.However,achieving net-zero goals by 2030 presents significant challenges,with skills gaps and the complexity of decarbonising supply chains seen as maj

12、or obstacles.In conclusion,as we navigate these complexities,the resilience of CEOs in India is encouraging.By prioritising M&A,workforce development,and robust ESG strategies,they are addressing immediate challenges while laying the groundwork for sustainable growth.Their proactive stance onYezdi N

13、agporewallaChief Executive Officer KPMG in Indiagenerative AI and cybersecurity,positions them to effectively manage future threats and risks.It is also worth noting that CEOs in India view geopolitics and political uncertainty as just the fifth greatest threat to organisations growth compared to la

14、st year where it was the number one threat.As these leaders adapt to market dynamics and stakeholder expectations,their vision will be pivotal in shaping the future of their organisations,carving pathways to success amidst uncertainty.3KPMG 2024 India CEO Outlook 2024 KPMG Assurance and Consulting S

15、ervices LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of in-It automatically comes dependent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.ForewordExploring opportunities for

16、growthMethodologyESGTalentTechnology and generative AIEconomic outlook4KPMG 2024 India CEO Outlook 2024 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership,and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International

17、Limited,a private English company limited by guarantee.All rights reserved.While internal and external risk factors continue to exist,CEOs in India remain relatively positive on the growth prospects for the global economy.Navigating growth opportunitiesAmidst continued economic uncertainties,80 per

18、cent CEOs in India(vs.72 per cent CEOs globally)are confident in the global economys growth prospects.Evolving risks landscape CEOs in India consider operational issues to be the greatest threat to their organisations growth,followed by environmental and climate change,emerging technologies,cyber se

19、curity and reputational risks.Strong appetite for M&ADespite continued geopolitical challenges,46 per cent CEOs in India compared to 45 per cent CEOs globally,anticipate a high M&A appetite over the next three years.There is a growing commitment towards generative AI among CEOs in India as well as g

20、lobally,with a majority expressing their intention to invest in the technology to drive the change.CEOs confident about the benefits of generative AI 71 per cent of CEOs in India compared to 70 per cent of CEOs globally report possessing a comprehensive understanding of the ways in which generative

21、AI,can enhance their organisations performance and secure a competitive edge.Ethical challenges with generative AI64 per cent of CEOs in India view ethical challenges as a hindrance to implementing generative AI.Around 62 per cent of CEOs in India say they expect to see a return on their investment

22、in the implementation of generative AI,in three to five years time.Preparedness for cyberattacks 58 per cent of the CEOs in India compared to 55 per cent of the CEOs globally expressed confidence that their companys cybersecurity measures are capable of keeping pace with the rapid AI advancements.CE

23、Os in both India and globally are taking a firm stance on returning to pre-pandemic,in-office work models.Enhancing the employee value proposition to attract and retain top talent will be their primary operational priority.Driving the shift back to in-office work 91 per cent of CEOs in India compare

24、d to 87 per cent CEOs globally are considering incentivising office attendance by linking rewards,raises,or promotions to it.Impact of generative AI on skill development 50 per cent of CEOs in India are equally emphasising on the importance of developing workforce skills and capabilities alongside t

25、echnological investments.CEOs have started considering ESG as an integral part of their corporate strategy,particularly in the context of enhancing customer relations and bolstering brand reputation.Leadership recognises the significance of ESG30 per cent of CEOs in India compared to 34 per cent of

26、CEOs globally have cited building customer relationships and brand reputation as the top area where ESG would have the most impact.66 per cent of CEOs in India indicated they would be willing to divest a profitable part of the business that was damaging their reputation.Need for faster progress on d

27、iversity and inclusion 77 per cent CEOs in India and 79 per cent CEOs globally concur that attaining gender equity within their C-suite leadership positions will facilitate the realisation of their growth objectives.Key themesESGTalentTechnology and generative AIEconomic outlookForewordExploring opp

28、ortunities for growthMethodologyESGTalentTechnology and generative AIEconomic outlook5KPMG 2024 India CEO Outlook 2024 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership,and a member firm of the KPMG global organization of independent member firms affiliated with KPMG

29、 International Limited,a private English company limited by guarantee.All rights reserved.The KPMG 2024 CEO Outlook surveyed CEOs globally and in India on their three-year outlook on the business and economic landscapes.The confidence of CEOs in India in terms of growth prospects for the global econ

30、omy over the next three years has considerably increased to 80 per cent in 2024 from 69 per cent in 2023.This substantial increase highlights a renewed optimism and determination in navigating long-term growth trajectories.Conversely,the level of confidence of CEOs in India in their own companys gro

31、wth prospects has declined to 68 per cent from 71 per cent in 2023,mirroring a slight decline of 76 per cent observed,when it comes to CEOs globally in comparison to 77 per cent in 2023.This indicates while overall economic recovery continues,executives remain cautious due to lingering uncertainties

32、 stemming from geopolitical complexities,economic instability,and rapid technological advancements.The confidence of CEOs in India and globally in growth prospects for the country remains unchanged in 2024 from 2023 levels.This stability supports the business confidence of CEOs in India and globally

33、 to pursue both organic and inorganic growth opportunities.Navigating growth opportunities in a dynamic business environmentSource:KPMG 2024 CEO Outlook and KPMG 2023 CEO OutlookConfidence levels in growth prospectsGrowth prospects for your companyGrowth prospects for your countryGrowth prospects fo

34、r the global economyAugust 202476%August 202368%August 202478%August 202368%August 202472%August 202380%77%71%78%68%73%69%GlobalIndiaEconomic outlookForewordExploring opportunities for growthMethodologyESGTalentTechnology and generative AIEconomic outlook6KPMG 2024 India CEO Outlook 2024 KPMG Assura

35、nce and Consulting Services LLP,an Indian Limited Liability Partnership,and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.While external threats like geopolitical

36、 tensions and political instability have receded,CEOs in India now face a new set of internal challenges,including operational difficulties with the constant emergence of new and disruptive technologies.The evolving risk landscape has also shifted the perception of CEOs,with 16 per cent CEOs in Indi

37、a(in comparison to 10 per cent CEOs in India in 2023)and 14 per cent CEOs globally considering operational issues as the greatest threat to their organisations growth.Furthermore,reputational risk,including misalignment with customer and public sentiment,has emerged as one of the top three threats f

38、or CEOs in India,alongside cybersecurity,emerging/disruptive technologies,and environmental/climate change.70 or higher per cent of CEOs in India believe that factors such as the cost of living,trade regulations,cybercrime and cyber insecurity,and talent shortages would negatively impact their organ

39、isations prosperity over the next three years.Top threats to organisations growth for CEOs in IndiaOperational issuesEnvironmental/climate changeEmerging/disruptive technologyReputational risk/misalignment with customer/public sentimentSupply chainGeopolitics and political uncertaintyCyber security2

40、0242023Geopolitics and political uncertaintyEnvironmental/climate changeEmerging/disruptive technologyRegulatory concernsInterest ratesCyber security and supply chainOperational issues0102020203040501010202020203Evolving risks landscape over the next three yearsSource:KPMG 2024 CEO Outlook and KPMG

41、2023 CEO OutlookForewordExploring opportunities for growthMethodologyESGTalentTechnology and generative AIEconomic outlook7KPMG 2024 India CEO Outlook 2024 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership,and a member firm of the KPMG global organization of independ

42、ent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.22%18%13%11%10%9%6%6%6%15%18%11%13%13%8%7%10%6%50 per cent CEOs in India and globally consider the race to embrace and embed generative AI and other technologies in their or

43、ganisations as their foremost challenge.13 per cent CEOs in India compared to11 per cent CEOs globally,view emerging and disruptive technologies,as one of the greatest threats to their organisations growth over the next three years.As the fear of technological stagnation builds,CEOs in India are pri

44、oritising digitisation and are enhancing connectivity across the business.They are also committed to understanding and implementing generative AI,across the business including upskilling the workforce to gain a competitive edge in the market.Economic uncertainty and geopolitical complexities remain

45、a primary concern for 50 per cent and 43 per cent of the CEOs in India,respectively.However,only 6 per cent CEOs in India compared to 12 per cent CEOs globally consider geopolitics and political uncertainty to be a threat to their organisations growth over the next three years.66 per cent of the CEO

46、s in India compared to 69 per cent CEOs globally,believe that generative AI could negatively impact their organisations prosperity over the next three years and to that effect are already adopting growth strategies to manage such trends and maintain resilience in the face of challenges.Along with ot

47、her key operational priorities,6 per cent CEOs in India and globally,have prioritised reconfiguring the supply chain to provide greater resilience,transparency and more consistent access to the supplies.This we believe will support in enhancing the operational efficiency and enable organisations,to

48、adopt new business models that respond more effectively to current and future market demands.Top operational priorities to achieve growth objectives over the next three years for CEOs in India and globally Inflation proofing capital and input costsReconfiguring the supply chain to provide greater re

49、silience,transparency etc.Employee value proposition to attract and retain the top talentAdvancing digitisation and connectivity across the businessExecution of ESG initiativesImproving the customer experienceInorganic growthOrganic growthGlobal(August 2024)India(August 2024)Understanding and implem

50、enting generative AI across the business including upskilling of workforce and streamlining processesEconomic,geopolitical and technological challengesSource:KPMG 2024 CEO OutlookForewordExploring opportunities for growthMethodologyESGTalentTechnology and generative AIEconomic outlook8KPMG 2024 Indi

51、a CEO Outlook 2024 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership,and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Despite co

52、ntinued economic challenges and geopolitical complexities,CEOs in India are poised to maintain a robust appetite for Mergers and Acquisitions(M&As).22 per cent of CEOs in India compared to just 26 per cent CEOs globally,identified M&A strategies as the most crucial element for achieving their organi

53、sations growth objectives over the next three years.46 per cent of CEOs in India exhibit a high appetite for M&A(a bit lower than last years 48 per cent),however higher than the global average of 45 per cent.Moreover,37 per cent of CEOs in India have displayed a moderate appetite for M&As with only

54、18 per cent stating that they are unlikely to make any acquisitions in comparison to 22 per cent in 2023.This underscores that,despite some caution,a significant number of CEOs in India maintain a positive outlook on the advantages of strategic M&As for fostering organisational growth.M&A appetite o

55、f CEOs in India over the next three yearsStrong appetite for Mergers and Acquisitions Source:KPMG 2024 CEO OutlookLow Unlikely to make any acquisitionsModerate-Will make acquisitions,but with moderate impact to overall organisationHigh-Likely to undertake acquisitions which will have a significant i

56、mpact to overall organisation46%37%18%ForewordExploring opportunities for growthMethodologyESGTalentTechnology and generative AIEconomic outlook9KPMG 2024 India CEO Outlook 2024 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership,and a member firm of the KPMG global or

57、ganization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Urgency around AI adoption accelerates amidst uncertaintyThere is growing commitment towards generative AI among CEOs in India as well as globally,with

58、 majority of them expressing their intention to invest in the technology to drive the change.CEOs in India believe that generative AI will increasingly be utilised to drive productivity gains and value creation across the workforce,with 18 per cent CEOs in India compared to 16 per cent of CEOs globa

59、lly,agreeing with the statement.Additional key benefits that CEOs in India view as a major advantage of implementing generative AI technologies,include new product and market growth opportunities(12 per cent),fraud detection and cyber-attack response(12 per cent),increased profitability(12 per cent)

60、,increased innovation(11 per cent),and upskilling the workforce for future readiness(11 per cent).Information technology is seen as the leading functional sector where CEOs intend to invest in generative AI over the next three years.A total of 69 per cent of CEOs in India compared to 68 per cent wor

61、ldwide have expressed their intention to do so.Additionally,other critical functional areas identified for investment in generative AI by CEOs in India encompass Sales and Marketing(61 per cent)and Finance and Accounting(54 per cent).Technology and generative AIImproving productivity and efficiency

62、considered the top benefit of generative AI70%CEOs in Indiacompared to 64 per cent CEOs globally indicated that they would invest in generative AI regardless of economic uncertainties in 2024 Source:KPMG 2024 CEO OutlookForewordExploring opportunities for growthMethodologyESGTalentTechnology and gen

63、erative AIEconomic outlook10KPMG 2024 India CEO Outlook 2024 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership,and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited b

64、y guarantee.All rights reserved.1%20%63%16%2%20%62%15%6 months-1 year1 year-3 years3 years-5 yearsMore than 5 years71 per cent of CEOs in India compared to 76 per cent CEOs globally,report having a solid understanding of the ways in which generative AI can enhance their organisations performance and

65、 secure a competitive edge.At the same time,they are also apprehensive about the pace of progress on generative AI regulations,with 77 per cent of CEOs in India as opposed to 69 per cent globally agreeing with this sentiment.Comparison of CEOs in India and globally on time taken to see a return on i

66、nvestment in implementation of generative AI CEOs in India confident about the benefits of generative AI,but concerned about the pace of progress on regulationsGlobal(August 2024)India(August 2024)“Ten years back,AI technologies were not something any one was talking about.Cut to today,its something

67、 that has become critical for business leaders,seemingly eager to explore all the possibilities that the technology brings with it.gen AI,presents more opportunities for businesses to increase efficiency,productivity and strengthen ones competitive position,by making use of all of its responsible as

68、pects i.e.-transparency,accountability,accuracy and explainability.While the tool in itself has the potential to rapidly evolve and self-learn,the need for humans to remain central to AI advancements,will hold the crux.An ethical approach in using the tool,by safeguarding against all the vulnerabili

69、ties will be extremely imperative.Source:KPMG 2024 CEO OutlookAkhilesh TutejaPartner and Head,Clients and Markets,KPMG in IndiaForewordExploring opportunities for growthMethodologyESGTalentTechnology and generative AIEconomic outlook11KPMG 2024 India CEO Outlook 2024 KPMG Assurance and Consulting Se

70、rvices LLP,an Indian Limited Liability Partnership,and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.”anticipate generative AI will not significantly diminish the

71、 number of jobs within their organisations over the next three years 86%CEOs in IndiaCEOs in India are finding themselves at crossroads,grappling with the challenge of deploying AI to drive growth and shareholder return,while ensuring that the ethical human impact of the technology is not compromise

72、d.Therefore,ethical challenges are a major concern,with 64 per cent of CEOs in India compared to 61 per cent CEOs globally,tagging it as a significant obstacle to adopting generative AI in their organisations.Considering other challenges,50 per cent CEOs in India identify technical capability and sk

73、ills required to implement generative AI as a major challenge,in comparison to 48 per cent CEOs globally.Contrary to this,48 per cent of CEOs in India share concerns over the lack of regulation,with as many as 50 per cent CEOs globally citing the same.Ethical implementation is perceived as a signifi

74、cant challengeCEOs exhibit a neutral stance regarding their readiness to implement generative AI,especially when it comes to data security.56 per cent of CEOs in India compared to 58 per cent of CEOs globally cited that they neither agree nor disagree that they are confident of being data ready to d

75、eploy generative AI safely and efficiently.Half of the surveyed CEOs in India and around 56 per cent of the CEOs globally neither agree nor disagree that their employees possess the right skills to fully leverage the benefits of generative AI,while 86 per cent of CEOs in India compared to 76 per cen

76、t of the CEOs globally believe that generative AI will not impact the number of jobs,but will require upskilling and existing resources to be redeployed.Moreover,66 per cent of CEOs in India compared to 58 per cent of CEOs globally concur,that the integration of generative AI has necessitated a reas

77、sessment of the skills required for entry-level roles.CEOs in India neutral about their preparedness to deploy generative AIComparison of CEOs in India and globally anticipating the impact of generative AI”anticipate generative AI will not significantly diminish the number of jobs within their organ

78、isations over the next three years 76%CEOs globallySource:KPMG 2024 CEO OutlookForewordExploring opportunities for growthMethodologyESGTalentTechnology and generative AIEconomic outlook12KPMG 2024 India CEO Outlook 2024 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnersh

79、ip,and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.3%Global(August 2024)45%43%9%1%Very Well-PreparedWell-PreparedUnder-Prepared7%31%46%14%1%Highly Under-Prepare

80、dNeither Under-Prepared Nor Well-PreparedIndia(August 2024)Comparison of CEOs in India and globally on preparedness for cyber attacks Technology is an integral part of any business today,that in many cases even for product organisations such as ours,technology is critical in the way we operate.Earli

81、er it was automation,then we moved to digital and now we have got a wave of intelligence which is only getting stronger.When you look at the short-term impact of technology,I think we are still going to have organisation laggards that are going to want to make investments in the areas of digital whe

82、re people,process and technology,come together on a single platform.That being said,organisations are going to look at gen AI,as a means to transform.In two to four years,gen AI will become mainstream because of its ability to assist on large business or strategic decisions,especially in the areas o

83、f operational decision making when it comes to either transactional data or to manufacturing data interspersed with numerical analysis,well see some transformative steps especially in the world of automated manufacturing.Companies should experiment and choose their technology partners well,somebody

84、who is willing to invest in their business,somebody who is at the vanguard of new technology,but has also got the ability and tenacity to go the distance.Manish Choksi,Non-Executive Vice Chairman,Asian PaintsCEOs in India are increasing investments in cybersecurity to protect their organisations fro

85、m potential threats posed by AI.Around 58 per cent of the CEOs in India and 55 per cent CEOs globally expressed confidence that their companys cybersecurity measures are capable of keeping pace with the rapid AI advancements.However,around 49 per cent CEOs in India compared to 59 per cent CEOs globa

86、lly,were uncertain about their organisations capacity to secure suitable cybersecurity talent and solutions to defend against AI threats.Safeguarding and keeping pace with the rapid AI advancementsSource:KPMG 2024 CEO OutlookForewordExploring opportunities for growthMethodologyESGTalentTechnology an

87、d generative AIEconomic outlook13KPMG 2024 India CEO Outlook 2024 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership,and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limi

88、ted by guarantee.All rights reserved.14%30%54%4%18%78%Fully remoteHybridIn-office20242023The survey has indicated that a significant portion of the CEOs in India envision a future predominantly characterised by in-office work environment.As the trend of employees reassessing their work preferences i

89、n the post-COVID-19 era gains momentum,it becomes imperative for businesses to gain a comprehensive understanding of the talent landscape in India.By leveraging information like availability of talent,quality of life for employees,and other such metrics,businesses can strategically position themselv

90、es and attract top talent by ensuring their needs are fulfilled.The power to shape the future of talent,lies in staying informed and adapting proactively.The debate on driving the shift back to in-office work continues Talent and the evolving workforce dynamicsIn the face of shifting workforce dynam

91、ics and challenges posed by both internal and external factors,growth-focused business leaders are recalibrating their social contracts to meet the changing expectations of current and future talent,while keeping long-term organisational growth in mind.According to the KPMG 2024 CEO Outlook survey,C

92、EOs in India are taking a firm stance on returning to pre-pandemic,in-office work models.78 per cent of CEOs in India,compared to 83 per cent of CEOs globally,envision a return to an in-office working environment for their employees within the next three years.To facilitate this,91 per cent of CEOs

93、in India compared to 87 per cent CEOs globally,are prepared to reward employees who consistently come into the office with promotions,raises,and more favourable assignments.In 2024,22 per cent of CEOs in India,compared to 20 per cent in 2023,have emphasised that enhancing the employee value proposit

94、ion to attract and retain top talent,will be their primary operational priority for achieving long-term growth objectives.This trend underscores the commitment of CEOs in India and around the world to support a smooth transition back to traditional work models,ensuring seamless integration for their

95、 employees while aligning with their growth strategies.The return to office discourse Comparison on the working environment for corporate employees in the next three years basis views shared by CEOs in IndiaSource:KPMG 2024 CEO Outlook and KPMG 2023 CEO OutlookSunit Sinha,Partner and Head-Human Capi

96、tal Advisory Solutions,Business Consulting,KPMG in IndiaForewordExploring opportunities for growthMethodologyESGTalentTechnology and generative AIEconomic outlook14KPMG 2024 India CEO Outlook 2024 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership,and a member firm of

97、 the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.We view generative AI as a strategic enabler that complements human talent,rather than a disruptor.The fact that 86%of Indian CEOs s

98、ee AI as a redeployment opportunity resonates with our approachwe are actively integrating AI to enhance customer experience,streamline operations,and improve decision-making.However,the true competitive edge comes from pairing AI with a highly skilled workforce.By focusing on ethical AI integration

99、 and upskilling,we are ensuring that technology amplifies human potential,helping us maintain agility and leadership in the rapidly evolving banking industry.Prashant KumarMD and CEO,Yes Bank59 per cent of the CEOs globally are focusing on investing in new technologies and only 41 per cent are placi

100、ng more capital investment in developing their workforces skills and capabilities to drive growth and transformation within their organisations.On the contrary,CEOs in India are equally emphasising on the importance of developing workforce skills and capabilities alongside technological investments.

101、The KPMG 2024 CEO Outlook survey indicates that 83 per cent CEOs in India perceive labour market shifts,particularly an aging workforce,as having a moderate impact on their organisations employee recruitment,retention,and overall culture.Conversely,only 64 per cent of CEOs globally share this view,w

102、ith 13 per cent believing the impact will be minimal.Further,30 per cent CEOs in India compared to 31 per cent of CEOs globally recognise that the number of employees retiring coupled with a lack of skilled workers to replace them as the most significant challenge facing their companies.Additionally

103、,CEOs in India as well as globally identify the widening expectation gap between older employees and younger generations,along with knowledge transfer issues,as critical factors influencing their organisations.Moving on,both CEOs in India and globally are optimistic about the potential of generative

104、 AI to enhance workforce skills and readiness for future challenges.To this effect,93 per cent CEOs in India compared to 92 per cent CEOs globally expect their organisations headcount to increase over the next three years.They believe that integrating generative AI into their operations will not onl

105、y facilitate upskilling,but also foster a more diverse range of skills and capabilities.Additionally,60 per cent of CEOs in India compared to 69 per cent of CEOs globally consider that experimentation is key to fully unlocking generative AIs potential and all employees should be encouraged to take p

106、art,regardless of their background or level of seniority.Impact of generative AI on skill development ForewordExploring opportunities for growthMethodologyESGTalentTechnology and generative AIEconomic outlook15KPMG 2024 India CEO Outlook 2024 KPMG Assurance and Consulting Services LLP,an Indian Limi

107、ted Liability Partnership,and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Six areas where ESG strategy would have the greatest impact over the next three years

108、in India as well as globallyundertake measures in response to ESG concerns.A significant majority,66 per cent of CEOs in India compared to 76 per cent of CEOs globally,have indicated they would be willing to divest a profitable part of the business that was damaging their reputation.However,there re

109、mains a degree of uncertainty among CEOs regarding their ability to achieve their Net Zero objectives by 2030.A mere 36 per cent of CEOs in India compared to 51 per cent of CEOs globally concur that they possess the confidence to meet these goals.CEOs in India(56 per cent)as well as globally(55 per

110、cent)perceive that their stakeholders expectations with regard to ESG change faster than they are able to adapt their strategy,which is a major obstacle in achieving their ESG objectives.10%5%13%18%Building customer relationships and positive brand association24%30%Shaping capital allocation,partner

111、ships,alliances and M&A strategyAttracting the next generation of talentDriving financial performanceStrengthening employee engagement and employee value propositionDriving total shareholder returnGlobal:34%Global:24%Global:17%Global:10%Global:9%Global:6%Leadership recognises the significance of ESG

112、ESGCEOs have started considering ESG as an integral part of their corporate strategy,particularly in the context of enhancing customer relationships and bolstering brand reputation.30 per cent of CEOs in India compared to 34 per cent CEOs globally,have cited building customer relationships and posit

113、ive brand association as the top area where ESG would have the most impact,followed by shaping capital allocation,partnerships,alliances and M&A strategy,and attracting next generation of talent.Further,it is evident that leaders are prepared toImpact of ESG on corporate strategy CEOs in India take

114、a neutral stance when it comes to ESG progressMore than half of the CEOs in India(54 per cent)compared to CEOs globally(60 per cent)agree that there is strong public expectation on businesses to address societal challenges,including inclusion,diversity,equity,social justice and climate change.Source

115、:KPMG 2024 CEO OutlookForewordExploring opportunities for growthMethodologyESGTalentTechnology and generative AIEconomic outlook16KPMG 2024 India CEO Outlook 2024 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership,and a member firm of the KPMG global organization of i

116、ndependent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.As a CEO,the most critical question is:how deeply embedded are ESG principles within your companys strategy?At Welspun Living Limited,we have set clear milestones thr

117、ough 2030,and we hold ourselves accountable for every step.In todays volatile worldwhether its geopolitical uncertainty or a potential crisis like COVID-19preparedness is key.The focus must always be on your ESG goals and the milestones youve set.This is not just about the CEOs commitment;its about

118、holding your teams accountable and ensuring your organisation makes a meaningful impacton your consumers,the planet,communities,and the broader ecosystem.Ultimately,leading from the front means driving progress towards these goals with unwavering focus.Dipali GoenkaManaging Director and CEO,Welspun

119、Living LimitedCEOs in India compared to 66 per cent CEOs globally are not prepared to withstand the potential scrutiny from stakeholders/shareholders when it comes to ESGCEOs in India compared to 48 per cent CEOs globally agree that it is possible to address all ESG priorities simultaneously75%33%Th

120、ere is a noticeable increase in the politicisation and polarisation of critical issues,including social mobility and climate change,which is presenting significant challenges for CEOs in India as well as globally who are already facing the pressure to meet or re-evaluate their established targets.As

121、 a result,CEOs both India and global,are altering their approach to communicating their efforts on ESG initiatives,with 75 per cent of CEOs in India compared to 69 per cent CEOs globally concurring with the statement.On the other hand,19 per cent of the CEOs in India compared to 28 per cent of their

122、 global counterparts have agreed that they have evolved their ESG strategies,in the past 12 months to meet the changing needs of the stakeholders.Leadership altering the way they communicate ESG strategiesSource:KPMG 2024 CEO OutlookForewordExploring opportunities for growthMethodologyESGTalentTechn

123、ology and generative AIEconomic outlook17KPMG 2024 India CEO Outlook 2024 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership,and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English comp

124、any limited by guarantee.All rights reserved.Global(August 2024)India(August 2024)In the year 2023,the primary concern for businesses failing to meet ESG related stakeholder expectations was attributed to the escalating costs and the inherent challenges associated with securing finance,followed by r

125、ecruitment challenges.However,in 2024,a notable shift was observed,with approximately 21 per cent of CEOs in India compared to 24 per cent globally,expressing that the growing competitive advantage of their rivals has emerged as a more significant concern.Additionally,other principal disadvantages o

126、f not fulfilling stakeholder expectations identified by CEOs in India include,the threat to their tenure in the position and challenges related to recruitment.Heightened concerns regarding competitors gaining an edge due to failing to meet stakeholder expectations in ESG Principal downside of failin

127、g to meet the expectations of stakeholders when it comes to ESG for CEOs in India and globally Business leaders recognise their obligation to foster enhanced social mobility,and they hold the opinion that the advancement in diversity and inclusion within the corporate sector has progressed at an ins

128、ufficient pace,with 58 per cent of CEOs in India and an equal per cent of their global counterparts sharing the same view.Furthermore,CEOs in India recognise that the scrutiny of organisations diversity performance is poised to escalate over the next three years,with a consensus being observed among

129、 CEOs in India(74 per cent)and CEOs globally(70 per cent)that this trend will persist.A significant majority of the CEOs in India(77 per cent)and globally(79 per cent)concur that attaining gender equity within their C-suite leadership positions,will facilitate the realisation of their growth objecti

130、ves.CEOs recognise the need for faster progress on diversity and inclusionSource:KPMG 2024 CEO Outlook5%2%10%11%11%16%21%24%6%6%10%12%13%15%18%21%Competitors gaining an edgeThreat to your continued tenureRecruitment challengesHigher cost of and/or difficulty in raising financeLimited growth opportun

131、itiesLoss of customersDisengaged employeesDecreased reputational trustForewordExploring opportunities for growthMethodologyESGTalentTechnology and generative AIEconomic outlook18KPMG 2024 India CEO Outlook 2024 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership,and a

132、member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Top barriers to achieving Net Zero or similar climate ambitions for CEOs in India The survey findings reveal that the

133、CEOs in India increasingly recognise ESG for what it is-an integral part of their operations and corporate strategies,for building productive sustainable businesses.Quantifying ESG performance and progress towards the targets through pertinent ESG disclosures are critical at a time,when both stakeho

134、lders and regulators expect relevant and accurate data,at par with financial disclosures.CEOs surveyed in India cited that articulating a convincing ESG story to stakeholders remains a challenge,but the good news is,they are committed to working towards becoming sustainable and are making concerted

135、efforts to remain resilient and agile.Namrata Rana,National Head of ESG,KPMG in IndiaSource:KPMG 2024 CEO OutlookCEOs in India and an equal per cent of CEOs globally think progress on diversity and inclusion has moved slowly in the business world 58%A mere 12 per cent CEOs in India,alongside 21 per

136、cent of their global counterparts,express confidence that they will see a significant rate of return on their ESG investments,within the next one to three years.These figures underscore the primary challenges identified by these leaders,namely lack of skills and expertise to successfully implement s

137、olutions and complexity of decarbonising supply chains.Barriers and ROI connectionsCEOs are increasingly adopting a long-term perspective towards ESG investments,acknowledging that the benefits may not manifest immediately but can accumulate over time.A significant portion of CEOs in India,comprisin

138、g 57 per cent,and globally,at 55 per cent,anticipate witnessing a substantial return on their ESG investments within the next three to five years.Conversely,31 per cent CEOs in India compared to 22 per cent of their global counterparts,believe that returns will be realised within the subsequent five

139、 to seven years.Rate of return for ESG investmentsLack of skills and expertise to successfully implement solutionsComplexity of decarbonising supply chains27%22%Source:KPMG 2024 CEO OutlookForewordExploring opportunities for growthMethodologyESGTalentTechnology and generative AIEconomic outlook19KPM

140、G 2024 India CEO Outlook 2024 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership,and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved

141、.Emerging/disruptive technologyInvestment in new technologies and market expansion:CEOs in India are increasingly committing to generative AI to enhance productivity and value creation.This technology is viewed as a key driver for new product development and market growth.By prioritising generative

142、AI investments,organisations can explore untapped markets,paving the way for sustained profitability.Developing a strong cybersecurity strategy:Establishing a robust cybersecurity strategy is essential for protecting assets and maintaining client trust.Regular updates,risk assessments,and a clear in

143、cident response plan will help organisations adapt to evolving threats and support long-term growth objectives.TalentEnhancing employee value proposition:CEOs in India are committed to improving the employee value proposition to attract and retain top talent.By rewarding in-office work and fostering

144、 a supportive environment,organisations can align employee satisfaction with long-term growth objectives,nurturing talent,ensuring well-being and thereby create a vibrant workplace culture.Integrating generative AI for skill development:CEOs in India recognise generative AIs potential to enhance wor

145、kforce skills and readiness.By integrating AI into operations,organisations can facilitate upskilling and encourage diverse skills among employees.Emphasising inclusivity in AI initiatives will empower all employees,regardless of their background or seniority,to contribute meaningfully,ultimately dr

146、iving transformation and growth within the organisations.ESGIntegrating ESG into corporate strategy:Leaders are recognising ESG as essential for enhancing customer relations and brand reputation.By prioritising ESG initiatives,organisations can strengthen stakeholder connections and attract top tale

147、nt,positioning ESG as a catalyst for growth.Long-term investment in ESG for sustainable returns:Business leaders are embracing a long-term view on ESG investments,with many expecting significant returns within five to ten years.Focusing on diversity,inclusion,and climate action allow organisations t

148、o meet stakeholder expectations while securing a competitive edge in the marketplace.MethodologyExploring opportunities for growthForewordExploring opportunities for growthMethodologyESGTalentTechnology and generative AIEconomic outlook20KPMG 2024 India CEO Outlook 2024 KPMG Assurance and Consulting

149、 Services LLP,an Indian Limited Liability Partnership,and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.MethodologyAbout KPMGs CEO OutlookThe tenth edition of KPM

150、G CEO Outlook,conducted with 1,325 CEOs of which 125 were from India,between 25 July and 29 August 2024,provides unique insights into the mindset,strategies,and planning tactics of CEOs.All respondents have annual revenues of over USD500 million and one third of the companies surveyed have more than

151、 USD10 billion in annual revenue.The survey included leaders from eleven markets(Australia,Canada,China,France,Germany,India,Italy,Japan,Spain,UK,and US)and eleven key industry sectors(asset management,automotive,banking,consumer and retail,energy,infrastructure,insurance,life sciences,manufacturing

152、,technology,and telecommunications).NOTE:some figures may not add up to one hundred per cent due to rounding.20KPMG 2024 India CEO Outlook 2024 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of in-It automatically

153、comes dependent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.MethodologyForewordExploring opportunities for growthMethodologyESGTalentTechnology and generative AIEconomic outlook21KPMG 2024 India CEO Outlook 2024 KPMG Assu

154、rance and Consulting Services LLP,an Indian Limited Liability Partnership,and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.Centres at Mumbai and Bengaluru:An exp

155、eriential collaboration space to experience working solutions and engage with experts to develop outcome-led solutions.KPMG integrates business solutions,insight-led consulting,digital technologies,industry expertise and design thinking methods,to work collaboratively with you for solving your bigge

156、st business challenges,innovatively and sustainably.Our innovation methodologies are customised to suit your specific requirements:1.Ideation&Collective Alignment:Brainstorming ideas and devising solutions;collective alignment and convergence to meet targeted objective followed by rapid prototyping,

157、refining and roll out planning2.Demonstrate working solutions and technologies:Showcase relevant use cases/solutions and industry leading practices to spur solution ideas for specific needs3.External Collaboration:Inviting our Digital and Technology Alliance partners and start-ups.Scan the code to k

158、now more and book your visit to the centreThe KPMG Innovation Kaleidoscope Insights Centre Explore Experience Engage The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity.Although we endeavor to provide accurat

159、e and timely information,there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future.No one should act on such information without appropriate professional advice after a thorough examination of the particular situat

160、ion.KPMG Assurance and Consulting Services LLP,Lodha Excelus,Apollo Mills Compound,NM Joshi Marg,Mahalaxmi,Mumbai-400 011 Phone:+91 22 3989 6000,Fax:+91 22 3983 6000.2024 KPMG Assurance and Consulting Services LLP,an Indian Limited Liability Partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.The KPMG name and logo are trademarks used under l