"The challenge for us is to look into plans in 2009 onwards and focus on driving up the profit line. So it's going to be back to basics for us next year," says Enrique Gonzales, president and chief executive officer of IPVG.
One of the strategies the company is looking into is turning cost-generating units like MIS into revenue-generating. "We have given MIS a new role to optimize the network of other companies under IPVG. For example, key servers handling PC to mobile messaging and music content will be a revenue source for us. We will also slash expenses and other operational costs," revealed Gonzales.
Gonzales noted that despite the challenging global macro-environment, sectors like communications, games and business process outsourcing (BPO) are fairly resilient with opportunities and business prospects coming in as the Philippines remains a preferred destination for outsource and offshore requirements.
"Even though there's certainly going to be a short-term shock in the system, it will also lead to an increased amount of work being migrated to the Philippines. In fact, we have already seen great interest from companies located in USA, UK and Australia to increase the amount of work they offshore as means of further reducing costs and staying globally competitive," explained Gonzales.
Other areas such as online gaming and Internet security are also counter-cyclical according to Gonzales, meaning their customers' needs grow despite a general economic downturn. "Online gaming is one of the most affordable forms of entertainment and Internet security is a "must" during times of increased business risk."