ERP Software implementation and customization costs and pricing differs based on the kind of Enterprise Resource Planning solution your organization has chosen including the size of the project. Either the system is an Open source or a licensed based and other factors including the customizations and development time require to develop the tool.
As we know that before implementing any ERP software; The costs and pricing is one of the most important aspects to understand the initial investment that is is required to develop an Enterprise software for the organization. In this blog post, we will cover what are the different types of pricing involved when a Business solution or custom software is developed and implemented.
ERP software Cost:
One of the major point on costing of any ERP software the kind of software your business has selected. Example proprietary or open source solution. Based on which the basic costing on various aspects such as development or modules of an solution varies. There are proprietary software available in the market which consists of base pricing with the service you would like to get from the vendor.
Further to that, there are even open source software available in the market which is available free of cost with the limited budget. In both the cases you can calculate the development + Implementation + Modules + licenses pricing and overall budget for the project.
Modules or Apps :
Once you select the product another ERP price incremental factor is the module or apps that you would like to implement for the business. As an example of a normal trading business, the module implementation will be simple whereas, if it’s a manufacturing business there might be a certain complicated process which needs to be covered by an ERP solution.
Sometimes businesses work with custom processes in an organization, therefore, there may be chances where one need to customize the module to meet the requirements and business goals.
3rd party integrations and connector also increase the overall budgets of ERP software.
Licensing is one of the major cost involved in any implementation. Enterprise edition prices is based on the number of users that would be using the software. There are a different version of ERP software available in the market today such as cloud version implementation on your server, SAAS – Software as a Service model and so on based on the version the cost of licensing differs.
ERP cost for Server
Server cost is another cost which is involved in ERP implementations cost, therefore one needs to keep in mind what kind of server the organization is selecting including the infrastructure.. server may vary based on the modules or number of users who would be using the software.
Vendor Implementation or Service Charges
If you notice in the above we covered the product, license, Modules, and the server cost for ERP. Once you decide on all these costs there is another cost which is involved in an ERP software that is the implementation cost by your vendor.
If you are implementing the ERP in-house then one needs to consider the cost of employing Expert professional, functional consultants, technical support people which will be involved in the implementation. Vendor fees may vary based on the kind of implementation and services you are expecting this can be a fixed bid model or time in material model.
There may be different ERP costs with vendor costs such as consultation fees, development cost, customization charges, training and so on these costs are involved in the implementation of an ERP software. implementation cost of an ERP software provided by a vendor includes all these duties that would be performed while undertaking the project.
On-site v/s Offshore development cost
The Pricing may vary based on the onsite vs Offshore development as if you are selecting a local vendor then the on-site cost will be less various if the vendor is located in another region then the onsite cost will be little higher.
Once you implement the software there is AMC – Annual Maintenance or Support charges that needs to be paid to the vendor based on ticket system for any kind of help required by any department while using the software.
Therefore, Maintenance cost is the final cost which one need to take into consideration during selection of a vendor. The maintenance cost can vary between 10 to 20% of the total cost of the project that needs to be paid yearly or maybe for certain Complex issue there will be cost based on the resolution time required by the vendor.
At GlobalTeckz we are official Odoo partners and have successfully completed more than 100+ ERP project we are working with our team in Mumbai – India and offer end to end services including Migration services to development and training.
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