Indian Firms Cut Costs to Cope with Market Uncertainty

Research from Deel finds that seven in 10 organisations in India are working to slash expenses by utilising automation and reducing the number of vendors within their businesses.  

By Maggie Mancini

Seven in 10 organisations in India are working to cut expenses amid market uncertainty, with even higher cost-cutting planned among start-ups and businesses (84%) and C-suite roles (93%), according to a recent survey from Deel and Rakuten Insights.  

According to the survey, respondents’ most popular cost-cutting measures include automation and AI (62%) and reducing the number of vendors within each business (61%). The survey also finds that fewer respondents consider staff layoffs (36%), mergers (36%), or salary cuts (29%) as part of cost-cutting measures.  

High salary expectations among AI professionals in particular present a significant barrier when hiring talent, especially for those hiring exclusively within India (80%). Meanwhile, although layoffs and salary cuts are being considered, they remain less favoured options by India’s business leaders.  

Remote work, however, has emerged as a way to streamline costs, with 71% of business leaders highlighting it to reduce overhead expenses.