ERP's Scope, penetration future opportunities and challenges in India

India is a well known player in the ERP market. India occupies a promising position in the whole of IT market .The governments, educational institutions and companies are constantly working towards promoting and expanding the IT market. In this context ERP holds lot of promises both in terms of supply and demand. There are some issues to worry about and some others which deserve appreciation.

Some of the issues concerning ERP in Indian Market are as follows:

How did ERP penetrate on a vast scale in India?

The Y2K problem and other diminishing opportunities of IT professionals were seen as a big challenge to the IT market. This was not only the case in India but else elsewhere in the globe. This proved to be a biggest challenge to the nation who were banking (and are still) on IT skills for development aspects (individual, economical and overall). The slump of the IT sector would add drudgery and smash the hopes of so many individuals and companies.

This problem in itself helped to get another important solution. Firstly this paved way for more prospects in ERP market. The demand and supply gradually transformed from general to enterprise resource market. Once this got stabilized there was no looking back. It was well evident that ERP market could boom and give the necessary impetus to stakeholders. However this did not mean that mediocre could survive in the market. There was demand only for top notch services and professionals. This naturally led to improvement in the quality of services offered. Such an improvement increased the competition among various players. The end user was getting assured that he would be receiving the best services for the money invested. Case ERP in India got more and more competitive. The ERP implementation in India demanded more than the custom erp India module.

ERP software programs were initially used only for back office functions. They were not given the due importance and treated just like another supporting function. Reasons like lack of awareness formed one part while other reasons were costs and technical difficulties. As explained earlier the gradual demand for ERP increased with a slump in the software market. Since this led companies to go in for ERP they automatically started to learn more about it either by force or felt need as they were left with no alternative. This indirectly created the awareness among companies. They learned more on ERP and realized its diverse applications. Finally they resorted to use ERP for the whole of the company and stopped the idea of restricting it to mere back office functions.

Pressures mount on the industry

The industry is facing two major challenges when it comes to dealing with ERP in the current context:

Sudden change

Firstly they are bound to increase the scope of ERP in enterprise operations. As discussed earlier ERP was initially restricted to back office functions and later spread its wings to all the operations in the enterprise. This naturally meant that the ERP manufacturers and vendors had to increase the functionalities and scope of the application. There are practical difficulties when it comes to this issue. The ERP experts will definitely be able to restructure the ERP systems with the help of resources and expertise available with them. However doing it all on sudden is a difficult task. They must have been working with different requirements till then. Compelling them to suddenly change will land things in a mess because there will be lot of confusions for the vendors, manufacturers and end-users. The unrealistic deadlines and time pressures further add agony to this menace.

Technical factors

Secondly ERP in the nation calls for a restructuring in the technical aspects. This is definitely appreciable. The fate of the businesses that have already implemented and deployed ERP remains a big question mark. No doubt change is inevitable and an element for growth. However it would be next only to impossible to change even before the current change has stabilized in the market. This is advantageous for the companies that go for ERP at the first instance .But when it comes to companies that already run successful ERP systems they have to stick on to the technical changes or ship out from the market. They can decide to stick on to change but it will cost them heavily. They can work on to find some replacement technology rather than going for an all round change. The effectiveness of the replacement is an important issue.

Finance

This is another important determinant of ERP market in India. Some bigger companies still hesitate to invest in ERP due to the exorbitant costs. It is indeed encouraging to find that a vast majority of them have realized its benefits and have determined to go for it. However some of them are keeping quiet due to the risks involved besides the unforeseen expenses and losses.

Conclusion

The ERP market in India is definitely promising. However India has got a long way to go when it comes to Improving ERP in terms of technology, scope and applicability in terms of opportunities and venues, penetration in terms of sectors like education, employment and the state run offices.

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