Thursday, December 18, 2008

Indian ERP vs Global ERP

What is the basic difference between an Indian ERP and a global ERP?

It is a misnomer that there exists these two different kinds of ERP's. The difference criteria can be a "local" ERP or a "multinational" ERP. The difference criteria can also be of whether it is an Indian company who is making this ERP exclusively for Indian market or a international brand which is setting up a local office and selling their "international" ERP in India.

An Indian ERP can be a "global" ERP as proved by a number of homegrown systems like Ramco while a international recognized brands like SAP, Sage and Microsoft can easily merge themselves into a Indian localization and cater to the system depending on their depth of localization. BUT all these systems are "global" ERP because at any time they can also cater to any other international client with minimum of fuss. In Indian context, the Indian ERP is usually a small home grown system with a few functionalities resembling an ERP system with bits and pieces of Accounting, Operations etc which is touted as an ERP system. They are usually much cheaper than their global counterparts and that is what makes them attractive to the end user. But is an investment worth it? The global brands have usually tried and tested the system worldwide in thousands of industries worldwise and they are carrying this experience to build up a system which will work for thousand and oneth customer too. It is a gradual process of value addition like in any industry but this is usually overlooked by the Indian buyers who just look at the price tag, the name of the company or their sales pitch which includes "an Indian product will be better for Indian industry".

The key advantages of any Global systems are:

- Used worldwide in different industry and hence usually has the best practices built in the system

- Bugs and issues are immediately fixed because it affects so many organizations worldwide and it is not meant to be fixed for a single customer.

- Implementation time is if the service provider is good as the system need not be customized

- GAAP priciples and best practices are followed

- In the long run, the ROI of the system is totally recouped because of lesser bugs in the system and lesser customization.

- Very less chance of the software vendor to be fold up and leave you in a lurch.

- Finally, most of the global system have been localized to meet your taxes and other aspects (at least Sage Accpac ERP can claim to be totally India compatible) and they are doing the localization in a much better way because of the inherent strength of development tools.


The key thing here is to select the right system provider who provides you with the correct solution rather than looking for the local vs global debate. Select any global brand but select your system provider carefully who has the experience in the market to develop and implement it.

If you have further query, do not hesitate to send an email at sales@greytrix.com for further discussion regarding why is a particular system much better for your industry need and how would it make more logical chocie to select a global system.

2 comments:

prajakta said...

Well explained the difference between Indian ERP and Global ERP. Informative post for me.

Manufacturing ERP Software

Realtek Consulting said...

The blog you have shared really worth for me.Thanks for Sharing...

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