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ERP in India


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.

The Indian ERP market

A D V E R T I S E M E N T

S A P - R E S O U R C E S


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Rs mn

Domestic

% yoy

Exports

% yoy

Total

% yoy

1995-96

500.0

700.0

1,200.0

 
1996-97

900.0

80.0

1,800.0

157.1

2,700.0

125.0

1997-98

2,800.0

211.1

3,400.0

88.9

6,200.0

129.6

1998-99

5,200.0

85.7

8,200.0

141.2

13,400.0

116.1

1999-2000

10,000.0

92.3

15,000.0

82.9

25,000.0

86.6

2000-01

18,000.0

80.0

28,000.0

86.7

46,000.0

84.0

2001-02

25,000.0

38.9

40,000.0

42.9

65,000.0

41.3

A D V E R T I S E M E N T

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