Indian organisations have underlined the need of modernizing their travel and expense (T&E) tools, but they struggle with the integration with other systems, says a study conducted by Forrester Consulting which was commissioned by Amadeus, one of the leading travel technology solutions providers worldwide.
The study that included India shows that the digital transformation of travel and expense (T&E) will improve the employee experience and help achieve corporate goals next year.
“New digital technologies like automation and machine learning have increased business efficiency and caught the attention of several organisations,” said APAC engineering head of Amadeus Mani Ganeshan and added that managing expenses is an important aspect of digital transformation that enhances efficiency and offers better ways of working.
“It is no surprise that companies are now thinking about improving their T&E processes and tools across departments,” he said.
The study says that automation of technology is in progress. T&E is now more digitized in comparison with the figure of 67% when the survey was conducted in 2020. However, travel and expense management currently presents several challenges. The security concerns pose a big challenge as many firms have poor integration between T&E tools and manual processes.
Indian orgnisations are, as says the study, also facing challenges of managing travel and expense. 34 percent of Indian organizations face problems managing compliance for travel, like visas and work permits. 36% of firms face privacy and security concerns in India against 31% globally.
In India, 23 percent organizations say the processing of expenses, reconciling invoices and payments are still going manual that puts a strain on employees’ productivity as compared to a 30% global figure.
On average, only 36 percent of systems are integrated with organisations’ T&E solutions leading to lesser performance and poor employee experience in India.
According to the survey, only 52 percent of respondents’ organisations utilised fully integrated T&E solutions globally, while 44% used solutions that were only partly integrated.
Around 91 percent Indian firms agreed that improving their T&E processes and tools is needed to reduce cost and increase efficiency in business operations in comparison with the global figure of 82%.
79 percent of global corporate leaders said that challenges with T&E processes bear the brunt of employee productivity and engagement whereas 73 percent of Indian corporate giants believe that bettering T&E management is quite important for improving employee experience.
Those firms which have integrated solutions face less employee complaints. The survey said that 6 percent of global organisations had no complaints.
Improving the integration between T&E technologies and other enterprise systems was top priority for 72 percent of Indian organisations, said the study.
69 percent of Indian organisations want to improve the end-to-end experience for T&E. For 72% of Indian leaders, virtual payments are quite significant for an end-to-end travel and expense management platform.
According to the study, 63 percent of Indian respondents said that one of the biggest advantages of virtual payments is better visibility and control over travel spending.
Compared with the global finding of 48 percent, 41 percent Indian respondents agreed that the technology helped them reduce the risk of fraud. Meanwhile, almost half, 46 percent, of the respondents globally said the tools improved VAT recovery processes, against India standing at 38 percent.
The study was carried out globally including India, Australia, Brazil, France, Germany, Nordics, Spain, UK & Ireland, and the US and Canada. The survey was conducted between July and August this year.