According to Panorama Consulting Group’s 2019 ERP Report, 88% of firms consider Enterprise Resource Planning (ERP) deployment to be a wise move that has aided their success. Fascinated by the advantages of the ERP system, many corporations have built their own in-house ERP system.
But, what are the risks of this decision? Should they maintain ERP software in-house or purchase a new one? To help corporations make the right decision, we will compare maintaining your in-house ERP system and purchasing one in this article. Read on to know more!
Maintaining An In-house ERP System
Firms have complete control in developing their in-house ERP system since their developers are internal employees, who are well-versed in companies’ requirements. After the live run, all resources and experts related to the project will stay in the company and be ready for maintenance & on-demand development of new features at any time. Besides, building their own ERP solution has lower upfront costs than buying a solution. Hence, this might save money and time for businesses.
However, technical issues, maintenance, and upgrades can only be solved by your limited internal resources when using in-house ERP software. This option means that the in-house team needs to acquire new technology skills to maintain the ERP application. This requires significant efforts and might pull them away from other critical business tasks. In addition, the capital allocation might cause delays in infrastructure upgrades, which can put the system in danger of crashes and bugs in the long run.
Purchasing A New ERP System
Buying a system from reliable ERP vendors will guarantee the quality of the software by acquiring a demo. Vendors will be able to provide you with a tried-and-true solution since they have a comprehensive knowledge base and rich experience. They also give helpful assistance to your firm throughout the deployment process. Being industry professionals, they will modify their software in line with technological advances.
- Synergix Technologies, a leading ERP provider in Singapore
This option can bring convenience to corporations. First, purchasing an ERP system can help you save time. With the software already in place, a normal ERP software setup can be faster than developing an ERP application from scratch. Furthermore, there are ERP suppliers that can undertake customisation according to businesses’ requirements.
Although ERP vendors might not be familiar with your company at first, they will learn about your business thoroughly before embarking on a project. Vendors also might not be able to respond quickly because they serve different clients. However, the finest providers will guarantee that you receive real-time support.
Which is Better?
So, should you purchase or develop an ERP system in-house? It depends on your business. An in-house ERP system will be the right choice if your company can afford it and your internal teams are up to the task. Many firms, however, may not have the internal resources to support such a massive endeavor. As a result, buying one is frequently the better option.
After all, how do you choose the right ERP implementation provider? The blog 5 Steps to Choose an ERP Software for Your Organisation might help you select the ideal partner for your company. If you need free consultancy and grant application support, don’t hesitate to contact Synergix Technologies.
With over 32 years of expertise, Synergix is confident to help you experience the benefits of a completely customisable and integrated ERP system. To minimise the net cash investment, eligible enterprises can tap on several grants of up to 70% of the qualifying cost introduced by the Singapore government.
Should you have any further questions, reach out to us today!