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Recessions impact different sectors of the economy differently, with some industries hit early and others later. Consumer-facing sectors, including media, usually feel the impact immediately. Technology (and telecom, to a lesser extent) is generally regarded as somewhat recession-resistant since customers continue to invest in ways to save costs and operate more efficiently.

Still, no company can be complacent. To get through a downturn and emerge stronger during the recovery, TMT companies need to take steps that go beyond short-term cost-cutting. They can start by learning from past downturns, including these three key lessons for longer-term growth:

• Fine-tune commercial/revenue strategy: This is the time to double down on the best customers and make sure you are not losing any sales because of an outdated commercial strategy
  
• Hold on to talent: Companies that outperform during downturns recognize, reward, and retain talent, and use financial and non-financial incentives
• Use M&A for offense and defense: A downturn is a good time to prune the portfolio—and to pick up assets that can deliver new sources of growth

In this report, we present the current outlook from ÀÖÓ㣨Leyu£©ÌåÓý¹ÙÍø economists, responses from TMT leaders to an economic survey we conducted in the second quarter, and detailed insights from ÀÖÓ㣨Leyu£©ÌåÓý¹ÙÍø advisors who specialize in TMT. Their consensus: thoughtful tactical moves now can blunt the impact of slowing sales and take advantage of new growth opportunities.