The non-financial services sector may suffer a decline of up to 25% in revenue and business slowdowns lasting up to 12 months due to the rampant COVID-19 pandemic, according to the report.
More than 200 senior leaders of non-financial services companies within the country engaged in the Protiviti India’s Business Resilience Barometer survey.
Nevertheless, the study observed strong turnaround efforts amid sales losses and market disturbances.
“Investments must be specifically prioritized and designed to improve turnaround,” said Nirmalya Gupta, Managing Director, Protiviti Member Firm for India.
Gupta further claimed that “industries will try cost optimization in their current/ established ways of operating in some of the main business areas and possibly in non-key areas and use the resources and cash available under the ‘new normal environment’ in more insightful and productive initiatives.”
Human resources, support functions, and infrastructure costs are likely to face a substantial reduction in costs as per the survey report.
The survey shows that there have been “solid restructuring efforts for financial services companies amid dropping revenues of up to 25% and business disturbances of up to six months.”
Approximately 55% of companies anticipate layoffs at the end of the lockout and do not foresee hiring to resume before at least 60 days, the survey also added that the most job cuts are expected from the real estate and construction industry.
Whereas a separate survey of over 100 leading senior executives from the country’s financial services sector indicated that companies in this room are projected to experience revenue declines of up to 25% and market delays of up to six months.
“The financial services sector is fairly resilient and will come back strenuously. Organizations are now updating their products and distribution strategies intending to reduce impact and ensuring that consumers can access and buy financial services products and services,” said Dnyanesh Pandit, Managing Director of Financial Services, Protiviti Member Firm for India.
Pandit further explained that “organizations are looking at cost-cutting, especially infrastructure and rental costs. Digitization will play an integral role in the revised strategy as organizations are looking to invest in remote collaborative tools, host their vital cloud applications, and create vigorous security and privacy framework around them.”