Indian businesses lead global optimism: 72% expect surge in B2B spending in 2023, outpacing global average of 49%: American Express survey

88% of businesses plan to allocate more funds to technological advancements

92% of Indian businesses consider improving security around payments as a top priority

New Delhi, November 7, 2023 – Indian businesses lead global optimism, with 72% expecting a surge in B2B spending* in 2023, outpacing global average of 49%. The surge in B2B spending in India is fueled by technology investments leading the way with 88% of businesses planning to spend more on it in the rest of 2023 compared to the first half of the year. These findings were revealed in Trendex: B2B edition, a survey commissioned by American Express with the Centre for Economics and Business Research (Cebr).

Another key driving factor for the surge in expected spending is business travel, as 72% of businesses are expecting to increase spend on travel, entertainment, and expenses. Business and professional services also seem to be a key consideration with 68% Indian businesses expecting to spend more on it for the rest of the year. An impressive 88% of businesses feel optimistic about the future success of their company for the year ahead, well above the global Trendex average of 77%.

Manish Kapoor, Vice President and Head, Global Commercial Services (GCS), American Express Banking Corp., India said, “It’s noteworthy that a substantial 84% of Indian businesses have taken steps to partially automate payments to their suppliers, with an impressive 39% achieving full automation of their payment processes. As the business landscape becomes increasingly competitive, the need to adopt smarter and more efficient payment solutions becomes paramount. For example, corporate cards, with their offering of extended payment terms, rewards on B2B expenditures, and seamless payment convenience, can make their spends more rewarding and efficient, effectively earning as they spend.”

The survey further reveals that an overwhelming 92% of Indian businesses consider improving security around payments as a top priority. A large share of Indian businesses (90%) also agrees that managing cash flow and working capital has gained greater significance over the past year. Automation in payments is rising with 84% of Indian businesses having at least partially automated payments to suppliers, while 39% have fully automated their payment processes.

BUSINESS SPEND PRIORITIES:

Technology takes the lead:

• When it comes to spending priorities, technology emerges as the top category, with 88% of businesses planning to allocate more funds to technological advancements.
• Among the reasons driving this trend are the desire to improve payment speed and effectiveness (71%), enhance productivity (69%), and cater to customer demands for more digital products (63%).

Advertising & Marketing:

• 79% of businesses are eager to increase their investments in advertising & marketing to explore new marketing channels (69%), target international markets (58%), and promote new products and services (58%).

Travel, entertainment, and expenses:

• Of the 72% of businesses expecting to increase spend on travel, entertainment, and expenses, a top reason is businesses attending more industry events (68%) to network, gain industry insights, and explore potential partnerships.
• Moreover, businesses are increasing the amount of domestic business travel (63%) and international business travel (60%) to expand their reach, establish global connections, and seize new opportunities.

Business and professional services:

• The most selected reason for higher business and professional services spending expectations is that companies are anticipating increased spending on IT and technology consultancy services (61%) to leverage technological advancements effectively.
• Many respondents are seeking increased accountancy/financial advice (59%) to navigate financial challenges and potential restructuring. 67% of the businesses spending more on business and professional services say that this is due to a rise in IT and technology consultancy, the top sub-category.

AUTOMATION IN PAYMENTS:

• The survey shows that 84% of Indian businesses have at least partially automated payments to suppliers, while 39% have fully automated their payment processes.
• Of those businesses that said that their payment processes were mostly or fully automated, 58% say that they have seen faster and more accurate invoicing. Furthermore, 54% reported it has reduced human error.
• 86% of Indian businesses say that they either plan to start automating or increase the level of automation for receiving payments from customers. Furthermore, 83% intend to increase their current level of automation of payments made to suppliers.
• For Indian businesses which haven’t automated all of their payments, 34% said they are seeking a partner to help them automate the business payments processes.

Survey Methodology:

Trendex: B2B edition, commissioned by American Express with the Centre for Economics and Business Research (Cebr) was run by Opinium research. The sample for this year’s survey included 513 senior decision makers in India with responsibility over at least three categories of expenditure. The businesses surveyed across sectors and industries included sole enterprises, micro businesses, small and medium businesses as well as large businesses.

ABOUT AMERICAN EXPRESS

American Express is a globally integrated payments company, providing customers with access to products, insights and experiences that enrich lives and build business success. Learn more at americanexpress.com and connect with us on facebook.com/americanexpress, instagram.com/americanexpress, linkedin.com/company/american-express, twitter.com/americanexpress, and youtube.com/americanexpress.

Key links to products, services and corporate sustainability information: personal cards, business cards and services, travel services, gift cards, prepaid cards, merchant services, Accertify, Kabbage, Resy, corporate card, business travel, diversity and inclusion, corporate sustainability  and Environmental, Social, and Governance reports.

ABOUT THE CENTRE FOR ECONOMICS AND BUSINESS RESEARCH

The Centre for Economics and Business Research is an independent consultancy with a reputation for sound business advice based on thorough and insightful research. Since 1992, CEBR has been at the forefront of business and public interest research. They provide analysis, forecasts and strategic advice to major UK and multinational companies, financial institutions, government departments and agencies and trade bodies. For further information about CEBR please visit www.cebr.com.