Until recently Indian organizations were in a
sellers market and operating in a regulated environment. They grew by managing the
environment, rather than innovating and improving internal efficiencies. The customer was
taken for granted and quality was available only at a premium. With globalization and
gradual lifting of regulation, there is a paradigm shift in running the business. Indian
companies now need to increase customer focus, improve speed of delivery, be cost
competitive and provide value for money (improved quality at lower price).
Indian companies therefore need to implement
ERP systems for improving their business processes and becoming more competitive in the
global environment. Though ERP implementation is costly and time consuming, it has several
benefits which will help recover these costs in the long run.
According to NASSCOM, during the year 1998-99,
the Indian ERP market has been estimated at R5200mn compared to Rs2800mn in the previous
year ie a growth of 85%yoy. The growth in the export market was far higher and more than
doubled during the same time period. According to the NASSCOM, by the end of FY2001-02,
the total Indian ERP market is expected to multiply by nearly 4 times and reach Rs65bn
compared to Rs13.4bn in 1998-99.