Indian companies are more optimistic about business growth this year compared to their global peers although talent related issues are among the major challenges facing them, says a survey.
According to the survey by Deloitte India and National Human Resource Development (NHRD), 35 per cent of Indian businesses are expecting a strong growth this year while another 45 per cent feel that it would be moderate.
In comparison, 16 per cent and 36 per cent of the global players are expecting strong and moderate growth respectively.
"While Indian businesses appear more optimistic about future growth and their assessment of their HR capabilities are higher than respondents across Asia Pacific and global respondents, we believe that 2014 and beyond is an important time for Indian business leaders," the report said.
"They would need to focus on what more they can do, and what can be done differently, to move the needle on their talent, leadership and HR agendas," it added.
As per the survey, the biggest challenges for business growth include failure to develop leadership, reinventing talent acquisition, deficiency of skills within Human Resources and reskilling HR as well as lack of efforts towards retention and engagement of employees.
At the same time, it noted that Indian businesses appeared to be investing in HR programmes at similar rates to their Asia Pacific and global peers.
In India, 16 per cent of the surveyed respondents plan to significantly increase investment by more than 5 per cent in their firm's HR in the next 12-18 months.
Comparatively, 13 per cent of Asian companies and global companies are willing to do the same.
"We remain convinced that some of the biggest opportunities for companies to improve growth, innovation, and performance, centre squarely on how business leaders re-imagine, reinvent, and reinvigorate human capital strategies, with a deeper understanding of the 21st century workforce," Deloitte US Global Human Capital Leader Marketing Jeff Schwartz.
"The talent management landscape has changed dramatically over the years, but organisations' talent management practices have not caught up with the technological and demographic shifts in the market place," NHRD Director General Kamal Singh said.
The survey compares results from India (150 business and HR leaders) with the global and Asia Pacific results from Deloitte's comprehensive survey of more than 2,500 business leaders and HR executives in 94 countries.