Indian corporates are likely to increase spending on travel and entertainment in 2018 to help meet their business priorities, a survey revealed.

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According to the Global Business & Spending Outlook Survey, 37% of the chief financial officers (CFOs) said that they are likely to spend more on travel and entertainment than last year, whereas 50% maintained that they are likely to keep the spending same as last year.

The survey was commissioned by American Express and was conducted on 870 participants across 21 countries. The report mapped the CFOs outlook for January-December 2018.

About 40% of the CFOs surveyed said that they are likely to invest more than last year in improving administrative process efficiency, which includes streamlining financial, account payables, or procurement process to help meet business objectives.

"Businesses are reiterating the need for increasing spend on travel and entertainment, optimizing cash flow and using it judiciously to grow and protect the business," Saru Kaushal, vice President and general manager - Global Commercial Services at American Express said in a report.

Over 60% of the executives said that use of credit facilities such as revolving credit lines, corporate card and ability to negotiate better payments terms on payables and receivables as well as volume discounts on purchases with suppliers and customers would yield substantial financial benefit to the company.

Senior financial executives in India also plan to increase their companies' workforce in the year ahead, with 97% of survey respondents anticipating an uptick in their companies' headcount in the coming year.

In an effort to attract and retain top talent, companies are also likely to improve the day-to-day working environment of their employees, offer more flexible work schedules and locations and expand career development programmes, revealed the survey.

First Published:May 30, 2018 8:13 AM IST