Growth of Enterprise Applications in India

Indian IT industry has seen drastic changes in past decade. In ERP segment, the story is very similar. Back in the days only Blue chip companies were associated with ERP tools primarily because of the cost in implementation. But today, we company be it small, medium or large size has an ERP requirement.

In India ERP industry is dominated by proprietary software like SAP, Oracle, Microsoft, Tally, etc. Slowly Indian companies are opening doors to Open Source ERP tools like OpenERP, Open Bravo, etc. There are also other factors such as industry best practices, easy and faster implementation and good cost predictions.

Another factor behind the growth is that already existing clients acquire more licenses and modules. The number of employees using the ERP system is increasing and the ERP clients who have started with the basic modules are going for subsequent applications. There is also a trend to replace customized system with standard application packages, like an ERP system.

India is expected to present ERP suppliers an important marketplace as manufacturing companies are significantly investing in technology solutions to improve their manufacturing operations. According to observation made by some experts in the field, the ERP market started showing solid organic growth since 2004 as IT spending improved. The Indian ERP market experienced CAGR (compounded annual growth rate) of 25.2 % during the period of 2004-2009. The market was $83 million in 2004, and is projected to be over $540 million in 2015, according to a research report.

The report further clarifies that manufacturers in India are increasingly implementing ERP solutions to ensure that decision makers have the required information visibility across the value chain. The mindset is changing steadily, from “Not required for us” to “Very much require for us” Indian SME’s are acting like catalyst in adopting ERP to streamline business.

Majority of Indian manufacturers are small by global standards, requiring easy-to-use ERP solutions to meet their specific process requirements, including localization needs to address the continually evolving tax and statutory requirements. Small and medium enterprises across industry verticals and micro verticals, such as automotive, pharmaceuticals, and textiles, are leveraging ERP solutions to gain sustainable competitive advantages.

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