The chief executive officers (CEOs) globally are entering 2026 with strong optimism, disciplined cost management, and adoption of AI and flexible work solutions, according to International Workplace Group’s latest State of the C-Suite report. The report finds that 95 per cent of CEOs are optimistic about 2026, with 84 per cent expecting global economic conditions to improve after a year marked by volatility and caution.
This confidence is mirrored in India, where 83 per cent of CEOs express optimism about their organisations’ growth prospects—a rise from 68 per cent in 2024 and higher than the global average of 79 per cent, according to KPMG’s 2025 India CEO Outlook.
While optimism is high, disciplined execution is central. IWG’s research shows that 100 per cent of CEOs globally consider cost control essential for success in 2026. CFOs are responding by trimming budgets by an average of 10 per cent, reflecting a cautious approach to spending even amid confidence in growth.
The report highlights that Indian CEOs, like their global peers, are balancing optimism with careful financial management, prioritising efficiency while maintaining growth ambitions.
AI Adoption Drives Operational Efficiency
To cut costs and increase productivity, leaders are harnessing AI solutions. AI can save businesses 20-40 per cent in operational costs, according to IWG, while flexible work models can reduce real estate costs by up to 55 per cent. Indian enterprises are leveraging these tools actively: 47 per cent of organisations have multiple generative AI use cases live, and 64 per cent are automating standardised back-office operations, according to EY’s AIdea of India 2026 survey.
The dual strategy of AI adoption and flexible working enables companies to reallocate capital to core growth areas while improving operational efficiency, the report notes.
Flexible and hybrid work arrangements are increasingly central to C-Suite strategies. IWG found that 78 per cent of Indian organisations have adopted hybrid or flexible operating models to support the digital transition, freeing employees to work across multiple locations, including local workspaces, central offices, and home.
“This is not simply a change in how people work, rather a rebalancing of where economic value is created,” said Mark Dixon, Founder and CEO of IWG. “By reducing daily costly commutes and empowering people to work closer to where they live, leaders can cut costs, maximise productivity, and drive better ROI.”
Among India’s post-pandemic “hybrid generation,” hybrid work is the leading preference, chosen by 30 per cent of workers, slightly ahead of fully remote and site-based models, each at 25 per cent, according to BSI’s 2025 Global Workforce Entrants Study. Work-life balance is a key motivator for 50 per cent of respondents.
IWG reports that globally, 83 per cent of CEOs already enable teams to work from multiple locations. Primary reasons include shorter commutes (43 per cent), access to wider talent pools (37 per cent), improved employee happiness and preference (37 per cent), increased workforce productivity (37 per cent), and access to lower-cost office or co-working spaces (37 per cent).
Flexible Work Drives Financial and Productivity Gains
The adoption of flexible work is financially impactful. IWG research indicates employees can save up to USD 30,000 per year by working closer to home in high-quality professional workspaces. In addition, previous IWG studies found that 78 per cent of workers report AI saves them time, with an average of 55 minutes gained per day, nearly equivalent to a full extra day of productivity per week.
In 2026, 56 per cent of CEOs plan to seek shorter-term leases or use co-working solutions, while 54 per cent will opt for membership in a network of flexible workspaces, reflecting a shift in office real estate strategy aligned with hybrid working.
The report finds that 83 per cent of C-Suite executives plan to prioritise investment in AI and automation, while 82 per cent will focus on boosting productivity in 2026. These investments are part of a broader strategy to maintain efficiency and competitiveness amid economic uncertainty.
In India, this approach is enabling companies to modernise operations while maintaining cost discipline, freeing resources for expansion and innovation.
IWG’s own network growth reflects this global shift. Between September 2024 and September 2025, the company opened 660 new centres in the US, with more than four out of five located outside major metropolitan areas. Its global network now comprises more than one million rooms in 121 countries, including all 50 U.S. states. The company opened 624 locations in 2024, and in the first half of 2025, signed and opened more new locations than in its first decade of operations.
This expansion underpins the report’s emphasis on flexible working, providing organisations with access to local and regional office options that support hybrid models and cost management.
India Aligns With Global Trends
Indian CEOs are increasingly mirroring global trends by combining AI adoption with flexible work policies to enhance operational efficiency. EY’s survey shows that 78 per cent of Indian companies have embraced hybrid or flexible operating models, while 47 per cent have multiple generative AI use cases live, indicating an active engagement with digital transformation.
These strategies are enabling Indian organisations to streamline operations, reduce overheads, and invest in growth-critical areas while maintaining workforce engagement and satisfaction.
Mark Dixon emphasised that effective management of people drives productivity and performance. “As leaders navigate AI, cost savings and retention – noting the high costs of attrition – the benefits of flexible work are allowing them to shore up their businesses and prepare for growth,” he said.
Flexible working models are also seen as a tool to attract and retain talent, supporting employee well-being, satisfaction, and productivity.
The 2026 State of the C-Suite report presents a clear picture of executives entering the year with optimism, disciplined financial management, and proactive adoption of AI and flexible work strategies. For Indian companies, these trends are aligned with global practices, highlighting the importance of efficiency, employee satisfaction, and localised operational models in shaping competitive advantage.
As CEOs seek to navigate a complex economic landscape, combining digital transformation with flexible working arrangements is positioned as a key lever for sustaining growth and maximising value in 2026. |
