Deloitte India's new report - cost management strategies for corporates
Deloitte India, we has launched the report Save To Thrive: Enterprise transformation and performance improvement strategies amidst the pandemic.
The report focus on cost-management strategies being adopted by different corporates to ensure quality output during the pandemic. Companies continue to have positive expectations for revenue growth, with many reducing costs to allow for necessary growth. However, in today’s increasingly digital world, businesses also recognize the need to transform their operations and capabilities with infrastructure investments in key digital innovations—shifting from a save-to-grow to a save-to-transform mindset
Pre-COVID-19 vs Current Outlook:
Indian respondents expectation of positive revenue growth outlook (66%) remains highest among all countries in APAC even after a sharper drop (32 p.p.) as compared to pre-Covid-19 levels.
Relative to pre-COVID-19 levels, the likelihood of undertaking cost reduction initiatives for Indian respondents increased from 57% to 73%. Also, four out of five companies in India now have cost reduction targets that exceed 10%.
‘Automation’ and ‘Transforming Supply Chain’ are the top transformation actions in ‘respond’ and ‘respond to recover’ stages for Indian respondents.
‘Next Normal’ priorities reported by respondents are:
Revenue Sources: Digital Channels and Domestic Operations
Operating Priorities: Enhance IT infrastructure to support management and operations, and Enable extensive remote work
Top Product Strategies: Adjust, redesign or innovate the product/service offering to expand to adjacent and/or new markets, and Customize products or services to meet new customer and/or government requirements
Customer Engagement Strategies: Increase flexibility on pre and after sales, and Increase of self-service options
Key Technologies: IoT, Cognitive and artificial intelligence tools, and Cloud Computing
Sectors expecting growth in the next 12 months: Life Sciences & Healthcare (80% respondents)
The ‘Next Normal’ New business conditions after COVID-19
Top product strategies for the next normal focus on innovation, customisation, and portfolio rationalisation. India respondents focus on redesigning and innovating core products and services with improved customisation to meet new customer and new market requirement. Apart from focusing on improving the core products, respondents are also targeting at improving the health and safety standards for their customers. Indian companies are launching new innovative products, which are adjacent to their current product portfolio but are in demand due to increased health and safety measures, such as masks, hand sanitisers, wet wipes, amongst others.
The report maps the extent of disruption, and identifies relief & recovery measures adopted by leaders in these sectors. It also shared insights on measures adopted by Corporates, Foundations and Not-for-profit organizations to address impact of COVID-19.