Indian Businesses To Dominate Global Market In B2B Spending, Technology Investments To Ramp-Up In 2023

Indian businesses are leading global optimism, and as per a survey, 72% are expecting a spike in B2B spending this year, surpassing the global average of 49%. The survey was carried out by American Express with the Centre for Economics and Business Research (Cebr). The survey highlighted that a 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.

Further, the survey pointed out that another key driving factor for the surge in expected spending is business travel, as 72% of businesses are expecting to increase spending on travel, entertainment, and expenses.

Also, business and professional services seem to be a key consideration with 68% of 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%.

On the survey, 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."

He added, "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 spending more rewarding and efficient, effectively earning as they spend."

Moreover, the survey also revealed that an overwhelming 92% of Indian businesses consider improving security
around payments as a top priority. A large share of Indian businesses (90%) also agree 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, it added.

In terms of technology lead, the survey mentioned that when it comes to spending priorities, the sector emerges as the top category. 88% of businesses planning to allocate more funds to technological advancements. Key reasons for that could be the desire to improve payment speed and effectiveness (71%), enhance productivity (69%), and cater to customer demands for more digital products (63%).

Under 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%).

While in travel, entertainment, and expenses, about 72% of businesses expect to increase spending 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.

In the case of business and professional services, 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.

The survey includes views of 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.