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Thursday, 6 October 2011

Competitive Advantages of ERP Software Vendors in India

Enterprise resource planning (ERP) systems began to gain popularity in early 1990s with ERP software development in India gradually gathering momentum and a growing number of vendors starting to offer an integrated set of enterprise management modules in a single software product with localisation that is able to address all aspects of a business: from manufacturing, to logistics and sales, to finance and accounting, to human resources, etc. Many local companies have placed orders for ERP Systems from reputable global software vendors, while others buy locally developed ERP systems from vendors in India.

ERP solution providers worldwide face fierce competition in a relatively limited market for their products. This type of software systems are expensive, their deployment requires specific know-how and extensive due diligence. Normally integration with existing software and customer relationship management (CRM) systems can be challenging, especially when trying to integrate with outdated software platforms, this can be handled by using well established integration tools and experienced vendors.

Local ERP solution providers can boast marked competitive advantages in regard to the overall cost of software and ability to provide professional support and know-how at very competitive prices. Deployment of an ERP system would require detailed due diligence to be performed, and ERP vendors in India employ well-educated professionals that are able to assess thoroughly all aspects of ERP's implementation within a particular company, typically locally-developed software solutions are highly customizable and configurable. Additionally, many local companies are engaged in development and deployment of ERP systems that run on remote cloud servers; web-based platforms that offer functionality offered by globally-deployed ERP systems.

India's software vendors are usually more flexible than their Western peers, which allows them to react faster and offer tailored solutions when different ERP software modules should feature specific functionality or particular modules should be added or excluded from the software.

A large manufacturer would probably require all modules of an ERP system to be deployed, including a CRM module, manufacturing module and a supply chain management module. A service provider, however, would rarely need a manufacturing module while practically every enterprise should require finance and accounting modules to be featured in its corporate ERP system. Behemoth ERP providers are able to provide solutions to suit the needs of every enterprise but these solutions can prove very expensive for small and medium sized businesses that tend to look for more affordable software.

Working as subcontractors for leading world software giants and tailoring orders on the local and regional markets during the past couple of decades has helped local software vendors to gain in-depth knowledge in the sphere of ERP needs of enterprises doing business in both developed and less economically developed countries. This is a major competitive advantage because most large world software vendors lack knowledge on the specific needs of companies operating in less economically developed parts of the world.

In fact, local  ERP software vendors in India are able to provide high-quality product or service at a very competitive price. The level of ERP software development in India is comparable to that in leading software producing countries worldwide.

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