Technology, media, and telecom companies are amongst the industries in which we see the greatest innovation and potential to overturn established ways of communicating, learning and working, and create new lifestyle and enterprise models. Inevitably, however, with periods of rapid industry transformation and increasing competition, there is enormous pressure to invest in innovation and customer relationships to avoid commoditisation and create and maintain competitive advantage.
In this article, and the series that will follow over subsequent editions of TMI, we provide a snapshot of some of the key issues facing treasurers and finance managers of technology, media and telecom (TMT) companies. Inevitably, it is impossible to cover every challenge, and indeed opportunity. Like treasurers in every other sector, treasurers of TMT companies face the difficulties of changing regulations, increasing cost of compliance, macro-economic challenges, and a prolonged period of low or negative interest rates. As we outline in this series, however, there are some issues that are of particular, and in some cases more specific concern to TMT treasurers, particularly around working capital, cash investment and rapid international expansion.