Facing recession headwinds and global economic uncertainty, every business is looking to cut costs these days. Some turn to layoffs and others to paring down services and budgets, but in all cases, keeping costs down while you’re trying to digitally evolve can be tough. If your business is considering onboarding new software and tools like enterprise resource planning (ERP) systems, you’re likely looking at a fleet of new costs and balancing what to outsource locally, keep in-house, or offshore entirely.
While offshoring the implementation of your ERP system is tempting for financial reasons, there can be significant drawbacks that cost you more down the line. Here we walk through the pros and cons of that choice.
Pay Less Now, but More Later
The only “pro” of outsourcing the implementation of your ERP to an offshore company is the upfront cost. You’ll pay less today if you go with a non-U.S.-based organization to implement your Microsoft or NetSuite solution, but you could end up with unforeseen costs later on as a result of not using an onshore expert. If they perform the implementation incorrectly, you’ll have to pay someone else to fix it or drag out support costs.
Who Do You Go to for Support?
Speaking of support, many offshore implementation services are one-and-done. You do not have access to them once your implementation is finished. You’ll be left to your own devices if you have questions about how the ERP system operates, how to use it, or how to troubleshoot anything. This is where choosing a local partner for implementation is particularly important as they can be available quickly for guidance and help with your ERP.
You’ll Skip Out on Guidance and Deep Experience
An offshore implementation service provider won’t be able to advise you on how best to use your ERP system to operate in your specific industry. A local partner is better suited to helping you leverage the right tools and functionalities of your ERP to achieve greater profitability. Local partners also have decades of expertise helping businesses get the most out of their ERP systems to directly support growth goals while offshore companies often have less-experienced talent.
You’ll Risk Cost-Inefficiency
A major reason to go with an ERP system is to save money across your organization. The greater productivity and efficiency you’ll see with ERP as a result of automation makes you more cost-efficient in general. But if you offshore your implementation, you risk not setting your solution up the way your business can truly leverage it. An offshore provider won’t be able to understand the nuances of your organization the way a U.S.-based provider will, and they won’t be able to help you get the most out of your new technology from a cost-efficiency standpoint. While the costs of using a more boutique business consulting firm might seem steep in the face of cheaper offshore options, you’ll get more out of your tools in the long run and maximize your investment in them.
Go Local for ERP Implementation
If you’re considering opting for an ERP system, congratulations—you’re on your way to a more productive, efficient, profitable business operation. The ERP implementation experts at DSWi are here as your local partner to perform your implementation and help you maximize your investment. Since 2006, we have been a boutique business consulting firm helping manufacturers, professional services firms, oilfield services companies and distributors grow through ERP. Reach out today to speak to one of our implementation experts.
