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20 Jun, 2022

Off the Shelf vs Custom ERP Development Services: Which to Choose?

 …Several organizations and businesses around the globe have adopted ERP development to unleash a set of opportunities for them to develop and expand. It is an excellent way to effectively handle mission-critical workflows with a reduced human effort by allowing automation at any stage of business. Besides, with real-time insights and advanced analytics features, ERP development services offer quick access to company data and employee activities. Therefore there is no doubt that ERP development solution helps businesses improve productivity and streamline their workflows. 

However, side-by-side, there is also a much debatable topic that is off the shelf vs. custom ERP development services. Each option has its share of pros and cons, so let’s take a deeper look into them. Enterprise resource planning solutions are complex. Thus, deciding to invest in one is a significant step that you must take after thorough consideration. 

Custom ERP Development Services

Understanding off-the-shelf ERP solutions

It is essential to have a proper understanding of the ERP systems available in the market. Off-the-shelf ERP systems refer to solutions that are ready for use. There is no waiting period for design or development involved with them as these software products are developed for mass usage. These usually contain various features that meet the needs of as many users as possible. Thus, Off-the-shelf ERPs are likely to have many tools and features that a business needs and some that they do not need.

However, unlike custom ERP software development services tailored to a business’s specific needs, off-the-shelf ERP software is very limited. These limitations can lead to recurring expenses, which may significantly cost a company over time.

Off-the-shelf ERPs have long-term costs

Several business owners often tend to make the mistake of overlooking the long-term expenses involved with the readymade ERP solutions. However, they fail to realize that off-the-shelf software is mostly supported by continuous fees for the usage of the product, like licensing costs or also the expense of adding more modules or users to the platform when needed. Depending on a business’s tenure to use the software, these expenses can quickly add up. They will usually cost the company more than a tailored solution.

Making changes can be an uphill ride

Since an off-the-shelf ERP comes with a set range of features, change is inevitable as every business has unique needs, and the notion of ‘one-size-fits-all’ doesn’t fall in place here. But introducing changes to off-the-shelf ERP software can be challenging. With a tailored solution, custom software updates and modifications are possible as needed to meet the recurring and evolving needs of the business. However, this is usually not possible with off-the-shelf ERP development services. This lack of flexibility can make it challenging for the company to grow with this ERP system in place. Moreover, businesses can hardly control the product and its source code when they do not develop the software themselves.

Lack of functionality becomes a concern

Off-the-shelf ERPs c work for as many businesses as possible. In such cases, the developers often try to fit in as many features and tools as possible to satisfy all customers. However, not every feature or tool suits every business. Unfortunately, too saturated with tools, these solutions become cumbersome to use. They may have functionalities that are not probably appropriate for the business or may be lacking in functionality in worse cases. It will ultimately hamper the productivity of the companies as it takes more time to navigate the platform rather than carrying out the daily tasks smoothly.

Not much scalable as business needs evolve

Every business grows and evolves with time. Hence, its needs also vary over time. To keep pace with its varying needs, its solutions must also be scalable to ensure the operations are on track. A readymade ERP system lacks this vital aspect making it difficult for businesses to respond to ongoing business developments. Thus, it cannot provide the company with the necessary tools and features to survive in the competitive market.

Custom ERP solutions

Also Read: Reduce ERP Implementation Cost – The Best Ways to do It

Custom ERP solutions offer great opportunities

More businesses are investing in custom ERP development software creation instead of vendor-based solutions. It provides them with greater flexibility and better control over the business, leading to increased revenue and enhanced management of customer relationships. Custom ERP solutions identify, verify, and analyze requirements before their development. User requirements are precisely mapped and all features are fully leveraged. However, it does not offer a faster time-to-market. Instead, it takes more time in development and execution. In addition, these customized solutions have their own well-defined scopes and challenges identified that make integration with external systems easier.

Highly adaptable and scalable

Custom ERP systems can provide a top-notch user experience higher than canned solutions. This is because mapping with each little user requirement is done in the inception phase. Thus, there is a high level of flexibility in answering to meet the user’s expectations. Moreover, the architecture of these solutions is highly robust and scalable. These are built with great accuracy and clearly understand the organization’s vision and mission.

Addresses the specific business needs

Custom-built ERP systems are developed based on real-time needs, explicitly designed to fit your organization. Therefore it provides an accurate and cost-effective solution to your problems. Moreover, it is also possible to change, modify, or add functionality without hassle. Custom ERP solutions can give you a competitive edge as it is built to meet your organization’s unique needs. No other organization can have the same software you own. 

Concluding statements

For start-ups or small businesses who seek to minimize their manual effort, opting for off-the-shelf ERP systems can be an ideal option. However, these vendor-based ERP solutions can not suffice in the long run as the company develops and expands. Naturally, the cost factor matters a lot if you are a start-up. Therefore, if your company needs to run in a small region with a limited workforce, you can better bet on an off-the-shelf ERP system. However, suppose you want to grow with an expanded force to new areas. In that case, the correct approach is to create a custom & tailored solution for greater versatility.

If you are looking for a custom ERP solution for your organization or want to optimize your existing system by adding new features, we can help! Ask our experts at Shyam Future Tech today and know more about our wide-ranging services.