An insight into Odoo ERP development cost in Australia

This article is going to discuss the determining factors for the overall Odoo ERP development and implementation cost. Read on and make an optimised budget for your business ERP.

Be it any industry, if you are planning to expand your business and looking for am impressive all-in-one business management solution that will grow with your business, ERP is what you need.

Now, getting a business ERP software is not like simply upgrading a software version! It needs proper planning, strategy, focussed business objectives, and definitely a good budget. While setting a budget for ERP, you must incorporate all the nuances of a project. It will not only ensure you are choosing the right ERP solution for the business but will also make sure you get it delivered on time.

Typically, when a business owner has selected an ERP vendor, both parties will negotiate the terms and enter into a contract. This can be a long, drawn-out affair depending on the size of the organisation purchasing the ERP software and their requirements. However, the overall price for ERP is generally influenced by several major factors. Here they go:

Deployment model

Whether to deploy a cloud-based system or an on-premise system is one of the major questions for businesses looking for new ERP software.

With an on-premise ERP deployment, users must still pay support and maintenance costs annually that run between 10% to 20% of the original licensing fee. Over the course of a year, subscription fees for a cloud-based system will typically add up to about 20 to 30% of the cost of a similar system’s perpetual license.

Customisation and users drive ERP cost

Some common ERP features are:

Business intelligence

ERP accounting

Supply chain management

Manufacturing

Inventory management

CRM

Human resources

While each of these features can add value to an overall ERP software, many companies won’t need all of them - and conversely, some companies may require additional features.

According to a market survey, only 7% of organisation use an ERP system as it is and the remaining 93% opt for customisation. So, depending on the degree of customisation, the overall ERP cost can vary.

Well, the total number of ERP users is another factor that influences ERP cost.

Scalability

Does the current ERP system support the organisation’s plans for growth in global markets? Or in the areas of new distribution channels and e-commerce? Organisations can’t afford to be limited by ERP software that is ill-equipped to handle growth. So, how scalable an ERP solution is can be a deciding factor for overall ERP cost as well.

Integration and third-party resources

There are many ERP implementation projects which require additional external third-parties or internal resources to integrate with other solutions, systems, and functional areas. While setting the ERP budget, you must consider the resources to integrate and communicate with the ERP system. Well, this may require additional development time or software with that company to facilitate.

Support & maintenance

According to market analysis reports, the support and maintenance cost for an ERP is typically 15% to 20% of the investment in an ERP solution.

Other than all the factors mentioned above, some other ERP cost influencing factors are:

Software licensing

Applications and feature sets

Infrastructure

Training etc.

ERP development and implementation involve a huge investment for businesses. Hence, it is advisable to talk with expert ERP consultants before finalising your decision. They can guide you the best according to your requirements.

Alex Forsyth is an experienced ERP consultant for Odoo in Australia having sheer knowledge on the market needs and trends related to ERP. He is presently working with Envertis, Australia’s best Odoo Ready Partner and leading a skilled team of expert Odoo ERP functional consultants. Starting from ERP planning to development, customisation to deployment, support and maintenance - he and his team take care of everything!

Alex Forsyth is one of the expert app developers in Sydney who is working for Envertis, an earmarked Australian company for mobile app development which has been delivering dynamic and revenue-centric apps to businesses.