ERP selection for a growing business is a long and winding process. You select a vendor, you analyze the costs and when you get quotes back from vendors, you’re overjoyed at the low cost of implementation services. We regret to burst your bubble, but if it looks too good to be true, it probably isn’t!
One of the biggest mistakes most SMEs make is not realizing that low ERP implementation quotes often come with hidden expenses, which will wreck their budget later. Here’s are a few hidden costs to keep in mind if you’re selecting a small or inexperienced ERP partner so that you don’t end up paying a bomb at the end of the implementation.
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- Alterations in the initial project scope
During the entire course of an ERP implementation, there can be minor or major changes in scope. But when your ERP vendor doesn’t clearly outline the scope of the project, you can be in for a nasty surprise that will cost your business time and money. When your ERP vendor doesn’t provide a detailed description of the scope and changing costs of the project, chances are that your vendor doesn’t have a formal methodology or quality assurances for ERP implementations. So, when you’re expecting a go-live by a certain date, it may not happen, adding to more downtime and losses. - Track record of the vendor
When you opt for small ERP vendors to handle your complex business implementation, you must consider the fact that they may not be experienced in handling the complexities that come with the big implementations. Before entrusting your business in their hands, be confident about the success rate of your vendor with similar implementation for other businesses. If risk factors are not adequately managed for the project or if the company’s track record of successful implementations is blotchy, you could be in for serious trouble and your business will end up paying a heavy cost. - Costs related to employee training
When you decide to hire an ERP vendor, have a detailed discussion about the inclusion of training costs for your employees as part of the implementation costs. One of the crucial aspects of adopting a new ERP software is ensuring that your employees know how to use the software. - Additional software maintenance costs
Another important factor your ERP implementation estimates should include annual software maintenance costs. When you choose the top-notch ERP solutions such as SAP Business One, you don’t have to worry about the updates. But in all the other cases, you will require system updates to ensure that you have access to the latest features and functionality. Make sure that your vendor is clear about how much these costs will be.
- Alterations in the initial project scope
With Isys Techworks, you don’t have to worry about the hidden costs and all other implementation details. Our deep technical knowledge combined with many years of experience in ERP implementation, allow us to work with clients from a diverse range of industries in South India including financial services, consulting, manufacturing, construction, textile, retail, packaging, healthcare and various others. Request a free demo right away!