A guide for Indian CEO’s to get ready for digitally driven sustainable development

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.

This comes after identifying operational risk as the biggest threat to organizational 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.

Meanwhile, 82% 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% and much higher than 42, last year in August 2020.

Despite this, they are ready to combat 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% are ready with a plan to address a ransomware attack if faced with one.

Further 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.

About 82% CEOs in India as compared to 87% globally have confidence in the growth prospects for their company. The number for India is marginally lower compared to where it stood in March 2021 earlier this year at 92%.

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.

Guided by purpose

• 78% CEOs in India stated that it is their response to the pandemic’s second wave that caused their focus to shift towards the social component of their ESG program.
• 42% CEOs in the country are seeing demand from stakeholders for increased reporting and transparency on ESG issues today
• 50% CEOs in India have said that they are struggling to articulate a compelling ESG story
• 90% CEOs in India see their corporate purpose having its greatest impact on building brand reputation

“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 is heartening to note is that 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,” Arun M. Kumar, Chairman and CEO, KPMG, India, said.

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 organizational growth, 19% CEOs in India.

Additionally, compared to their global counterparts, CEOs in India have indicated a higher focus towards investing in digital tools and preparedness for a hybrid work environment.