subject: Outsourcing In Enterprise Resource Planning (ERP) [print this page] Speaking of whether Enterprise Recourse Planning (ERP) will gain more popularity or being ignored will be a good argument but a company should never neglect weighing both the pros and cons of ERP subcontracting. There are few advantages that such planning can provide.
Firstly, there will certainly be increment in opportunities. It was previously restricted to only corporate companies or huge players but there are more initiation of outsourcing the Small and Medium Enterprises (SMEs) with the application enclosing reasons such as benefits and costs. Besides, it was rather difficult for small firms to customize and use the planning according to their preferences before the outsourcing of ERP takes place due to some technical intricacies. Furthermore, the outsourcing has ceases such threats and led to expanding the market of such resource planning.
Another benefit is the management's psychology. Most companies would travel the safer channel and consider only the advantages hence they would not dare risk themselves through complicated issues such as the outsourcing. And there are numerous corporate firms who released the idea of outsourcing due to these problems. Outsourcing has actually untangled the myths related to the planning and upon implementing it; companies have come to realize the importance of ERP. No doubt the outsourcing has dominantly influenced the popularity of the concept.
In addition, outsourcing can enhance the strategic business partnerships. It has broadened the range towards some strategic business alliances. Although it was already a common affair occurring in firms such as hotels, hospitals and other related companies, it was quite difficult to inject the feature into firms having diverse businesses. There were also problems such as technical difficulties. However, with the outsourcing of ERP, the installation of the concept became much simpler. The idea was capable to penetrate into companies involved in different ventures. Such feature is indeed beneficial for giant companies as they can save on the costs as well as avoiding confusions.
Overall, it is undeniable that although outsourcing is still limited, it has vast contribution in eliminating the skeptical perception towards the ERP. Outsourcing resembles a wing for the concept to fly high.
