Why Open source ERP is Best for Indian SME’s

As discussed in our previous blog postings that the growth of ERP implementations is increasing everywhere. India being a developing nation and growing in IT spending today many small and medium sized businesses are implementing technology to fasten the work time and improve their business efficiency. Small Businesses in India mainly a company of 3 to 5 people are also using single applications such as accounting software to manage all the business & accountancy related transaction.

Reasons Open source software is best suited for Indian Small & Medium Enterprises:

Single software:

Some small companies are also using multiple applications such as Human resource software, customer relationship management software to manage various departments. Multiple applications lead to multiple vendors & software management. Therefore it is advisable to use an ERP software instead using variety of software.

Cost Effectiveness:

Many Small and Medium enterprises in India are cost conscious due to limited IT budget and because of this reason many SME’s ignore using ERP software for their business. Therefore it is preferable to use Open Source ERP software initially to streamline the business process as this software is available at a very low cost and can fulfill major requirements of an organization via customization.

Easy Availability:

Open source ERP software are available freely on Internet – Before selecting for your organization you can even do Market research or implement as a proof of concept to check the suitability with your Process organization. Do not since it is available freely on internet doesn’t mean it is not effective. The features and functions of Open source ERP software is as strong when it comes in meeting your business requirements.

Quick Implementation:

Open source ERP software can be implemented quickly since there are variety of modules which can be used as per the suitability of the organization, therefore it is quite suited for Indian SME’s to implement Open source ERP software, rather going for Proprietary software with heavy costs.


Due to differences of Business process and workflows especially in Indian SME’s customization points in Open source ERP software can be done hassle free to meet up the requirement of the organization.

No Licensing Cost:

One of the most important cost effective factors of implementing Open source ERP software for SME is that there are no license fees for the users. Large companies can pay licensing fees, But it get difficult for SME to have license cost every month based on the users.

Interested in open source ERP? Odoo (OpenERP) is one of the best open source ERP software. Learn more here.