Most analysts are forecasting that IT budgets in 2009 will remain at 2008 levels and in a positive sign, some recent studies suggest that most enterprises are not planning on dramatic budget cuts.

Surveying over 140 UK professional services companies the CBI found that over the past three months profitability fell at a record rate for a number of consumer services companies and was flat for business services firms. Far from reflecting this position, IT services companies appear to be riding the crest of a wave and are showing fast rises in the volume of business.

Why would this be the case? Leading analysts believe it is due to the fact that some companies resort to outsourcing in a struggling economic climate as they try to reduce costs, improve effectiveness and make the balance sheet appear healthier.

Part of this process of cutting overall costs includes consolidating ERP systems, hardware and business performance technology. So an opportunity presents itself to software suppliers, vendors and system integrators even during a generally tough economic climate. This trend is typical during an economic downturn and has been seen before. Oracle’s product portfolio should enable it to take advantage of this type of corporate strategy.

Oracle has recently posted better than expected financial results but it predicts a tougher next quarter as the global economies slow. Oracle’s primary customers are large corporate and government organisations and a slowdown is expected, especially in the Financial Services sector. However, the signs are that they are well placed to ride out the present turmoil in the markets and remain in a strong and healthy position.