Average cost of application development

What factors determine the cost of the ERP system?

An ERP system is a complex solution that can consist of several modules, each of which implements the particular functionality. Therefore, the average cost of application development can not be explicitly evaluated. However, we can divide the development and deployment process into several parts, which will help us make more or less precise calculations:

1. Implementation

If you want to implement an ERP system on your corporate servers, you should remember something about how this decision will affect the overall cost. Each ERP system is a fairly complex system. Therefore, a system of this type requires the due attention of experienced professionals to install and configure themselves. There is a high probability that you need to update or change your servers to start the ERP system correctly. You must include these implementation costs in the total price of the ERP system.

2. Training

It may not be so easy for your employees to start using an ERP system recently adopted immediately. That is the reason why your staff may require additional training on how to use such a system. Often, the ERP provider provides on-demand training at a standardized hourly rate, which will also increase the overall cost.

3. Redesign of business processes.

If your company is upgrading to a complex ERP system, you will have to redesign many processes that can increase the overall cost of adopting an ERP system. Many daily tasks that are handled manually will be automated by the ERP system to increase accuracy and efficiency. These changes require time and effort, so you can expect some changes in your company's business processes to coincide with the software processes.

4. Maintenance

There is a need to maintain your ERP system, so you should also consider these costs. This factor includes the hardware, network and labor costs of the IT department to ensure that the system functions correctly.

5. Updates.

Your ERP system must be continually updated, which can increase the overall cost. Otherwise, it will become obsolete and less useful. You should consider how often you will update your ERP system and what the costs will be. Also, pay attention, as each update may affect business processes or require additional hardware or software.

6. Support.

Probably, your staff will face some problems while working with the ERP system. Therefore, you should make sure that your software provider provides technical support to help you solve these problems. Ask the software developer if technical support is included in the license fee or if it is an additional cost.

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