Mumbai: The global C-Suite is entering 2026 with renewed confidence, even as economic uncertainty continues to shape decision-making. According to International Workplace Group’s (IWG) latest State of the C-Suite report, 95% of CEOs are optimistic about the year ahead, with 84% expecting global economic conditions to improve following a period marked by volatility and caution.
This optimism, however, is firmly anchored in financial discipline. The research reveals that 100% of CEOs consider cost control essential to success in 2026, while CFOs are proactively tightening purse strings, trimming budgets by an average of 10%. Leaders are increasingly turning to technology and new operating models to balance growth ambitions with fiscal prudence.
In India, CEO confidence mirrors and, in some cases, exceeds global sentiment. As highlighted by KPMG’s 2025 India CEO Outlook, confidence in India’s economic resilience is holding steady into 2026, supported by strong domestic fundamentals despite global headwinds. Notably, 83% of Indian CEOs are optimistic about their organisations’ growth prospects, up sharply from 68% in 2024 and higher than the global average of 79%.
To drive efficiencies, businesses are increasingly harnessing AI and flexible working models. AI adoption is enabling organisations to save between 20% and 40% in operational costs, while flexible work solutions can reduce real estate expenses by up to 55%, freeing up capital for strategic investments. In India, this dual approach is gaining momentum. EY’s AIdea of India 2026 survey shows that 47% of enterprises have multiple GenAI use cases live, while 78% have adopted hybrid or flexible operating models to support digital transformation. Around 64% of organisations are also automating standardised tasks such as back-office operations, delivering meaningful cost and productivity gains.
Beyond cost savings, investment priorities for 2026 are clearly defined. Four-fifths of C-Suite executives (83%) say they will prioritise spending on AI and automation (82%) and productivity (82%). Previous IWG research underscores the productivity upside, with 78% of workers reporting that AI saves them time—on average 55 minutes per day, nearly equivalent to an additional full day of productivity each week.
Workplace strategies are also undergoing a fundamental shift. Companies of all sizes are empowering employees to work across multiple locations, combining local workspaces, central offices and home environments. This represents a rebalancing of where economic value is created, enabled by technology that has reduced the need for daily, long-distance commutes to central headquarters.
The trend is particularly evident among India’s post-pandemic “hybrid generation.” According to BSI’s 2025 Global Workforce Entrants Study, hybrid work is the top preference for new entrants (30%), ahead of fully remote and site-based models (both at 25%), with work-life balance cited as the leading motivator by half of respondents.
Reflecting this shift, 83% of CEOs globally already enable teams to work from multiple locations. Key drivers include shorter commutes (43%), access to wider talent pools (37%), employee happiness and preference (37%), improved productivity (37%), and the ability to use offices or co-working spaces in lower-cost locations (37%). Looking ahead to 2026, more than half of CEOs plan to seek shorter-term leases (56%) or opt for co-working solutions and flexible workspace memberships (54%).
“There is no longer a binary choice between work from home and work from the office,” said Mark Dixon, Founder and CEO of International Workplace Group. “By reducing daily, costly commutes to faraway offices and empowering people to spend more time working closer to where they live and want to be, leaders can cut costs, maximise productivity, increase employee satisfaction and retention, and drive better ROI. And while the business benefits are clear, additional research conducted by IWG shows employees can also save up to $30,000 per year by working closer to home in high quality, professional workspaces in the heart of their local communities.”
The report’s findings align with IWG’s own rapid network expansion. Between September 2024 and September 2025, the company added 660 new centres in the U.S., with 83% located outside major metropolitan areas. IWG’s global network now spans more than one million rooms across 121 countries, including all 50 U.S. states. The company opened 624 locations in 2024 and, in the first half of 2025 alone, signed and opened more locations than in its first decade of operations.
“Productivity and performance come down to good management of people,” said Mark Dixon, CEO and Founder of International Workplace Group. “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.”
Overall, the State of the C-Suite report paints a picture of leaders entering 2026 with confidence tempered by discipline—embracing AI, flexible work and cost efficiency as key levers to drive sustainable growth in a rapidly evolving business landscape.
