Know The Reasons For ERP Market Growth In India

There are many reasons for ERP market growth in India and these are expected to keep growth at healthy rate in coming years too. India opened its economy for international companies quite some time back, this allowed and made easy for foreign companies to have their offices and production units and license to do business in India. Open-economy made Indian market very competitive and Indian companies needed to upgrade themselves to stand the competition. With the help of ERP Indian companies could increase their efficiency and productivity, offer products and services at competitive prices and also could enlighten their management for better and timely decisions. Chunk of the demand for ERP is coming from local Indian companies who are trying to overcome international competition.

Initially after globalization of Indian market demand for ERP was largely from manufacturing companies who had a chance to face international competition. These companies implemented ERP to increase their business performance by reducing costs and increasing productivity so that they are able to hold on their market share and survive the competition. Companies in process and discrete manufacturing also jumped on to ERP as a tool to survive. This created base for ERP boom in the market and is one of the reasons for ERP market growth in India.

Another reason related to Indian economy is that after liberalization even Indian companies spanned their businesses in other countries and mostly in developed countries. To do business in a matured market they needed knowledge and wisdom to understand trends and demands of the market and also ability to control the affairs from their offices located in India. This also raised the demand for efficient ERP software and is one of the reasons for ERP market growth in India.

Availability of trained technical professionals is another reason for ERP market growth in India. Compared to other developing countries India probably has highest number of young technically trained professionals. To sell ERP is one thing but to implement and make it run successfully companies need trained professionals and consultants. In India availability of such manpower is cheap compared to international market, this allowed the companies to go for ERP implementation and also helped ERP providing companies to provide better services at reasonable prices.

India offers immense potential for growth to other industries along with manufacturing. Hospitals, hotels, retail chain, banks, financial companies, educational institutes etc are flourishing in Indian market. To capture most of the market share international brands joined hands with local giants to work together as local companies have deep knowledge of the market. Most of the international brands use ERP for managing their businesses which also pushed local companies to implement ERP at their end to match with the efficiency of their partner. This is another reason for ERP market growth in India.

In coming years ERP market growth in India is expected to increase as even medium and small sized companies will go for ERP, with more and more economical options available like web-based solutions ERP will come in range of many medium sized companies which will boost up its growth even higher.

Read about ERP Implementation Planning and Strategy. Also know ERP Implementation Obstacle.

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