Nowadays most of the companies are outsourcing their works to outside vendors, most of the firms are coming forward to implement online platforms like ERP, SAP etc, in their organizations. The processes or activities that are being outsourced could range from customer service and telemarketing, to IT management, software development, and market research. So, just take a look about what is outsourcing and what measures to be taken to outsource a vendor.
The term is used to refer to transferring set of functions or processes of the organization or firm to another irrespective of their physical location or country.
Essential Elements to be considered while choosing the firm providing outsourcing services
The company has to take lot of care in choosing the firm providing outsourcing service. The company should have a meticulous plan to choose an appropriate vendor; they have to make a lot of research to choose a vendor. This research helps them to set some criteria to select an appropriate vendor.
Some of the points to be considered in choosing the appropriate vendor for outsourcing ERP -
Cost and function
These issues play an important role while selecting an ERP outsourcing service provider. The outsourcing service provider should able to get client's job done with lesser investment and well be equipped with qualified staff to give quality of work.
Any company will not prefer the readymade software which are made with some rigid specifications, in fear of not able to get their object fulfill. So, ERP vendor providing outsourcing will always be able to create new designs based on the client requirements, and always willing to install the applications and use the rigid designs which they prepared for their former clients with the clients concern.
Goodwill of the Vendor
The company need not always go for the top outsourcing service providers. If the company purely based on that issue then there is a chance to take more time to complete the project according to their project schedules and there is chance the project cost will cross the budgeted cost and the chances for the success of ERP outsourcing are very minimal.
ERP implementation is important in the whole process of ERP project. Implementation can take place only if one understands the basic concept of enterprise resource planning and defining it in the organization. Companies should have clear idea about Enterprise Resource Planning before implementing. It has to be implemented as planned after understanding all the components of enterprise resource planning software. The faster it is implemented the faster it delivers the desired results.
Merits and Demerits of ERP Outsourcing
ERP outsourcing is the best way for companies who want to change their old process and want to implement new and advanced technology in their company to get better results with in the short time. ERP outsourcing is also a cost cutting method for many companies. So they no need to hire software professionals for high salary. Enterprise Resource Planning definitely saves company in terms of two valuable resources i.e. Time and Money. But giving training to staff is the main aspect of ERP, which can lose of the business hours through the training period and purchasing of new machines cause some demerits of ERP outsourcing.