India ERP Market - A Scenario
In the last decade, ERP software has exploded into the global business landscape. With the opening up of the Indian economy, there has been a turnaround growth in different industry verticals thereby helping them reach a level of maturity that demands advanced technology to efficiently manage and streamline their processes. This growth and along with the associated competition and quest for enhancing market share has led the organizations to re-look at its processes and procedures and put in place proper processes enablers and solutions to make its business more efficient and effective. Many Indian industries already have realized the need for ERP solutions, and the industry-related market growth should match the expansion of the sector as a whole.
According to a research report, The Indian ERP market experienced compounded annual growth rate of 25.2 per cent during the period 2004-2009. The market was $83 million in 2004, and is projected to be around $160-180 million in 2010. Some of the potential target segments which have shown high penetration are Automotive, Steel, Consumer Durables, Engineering, Retail, Communications and Textiles thereby making it attractive for the ERP vendors
An ERP package can streamline and automate different important functions of an organisation such as accounts payable, accounts receivable, activity management, benefits administration, and billing, invoicing and cost tracking (for project-based businesses), payroll, Sales and Marketing. With ERP, companies can also improve cash management, while manufacturing firms can practice more effective capacity planning and cost containment.
Major Benefits
● A primary benefit of ERP is easier access to reliable, integrated information, elimination of redundant data and the rationalization of processes, which results in substantial cost savings.
● It enables decision-makers to have an enterprise-wide view of the information they need in a timely, reliable and consistent fashion. The system provides consistency, visibility and transparency across the entire enterprise.
● The integration among business functions facilitates communication and information sharing, leading to dramatic gains in productivity and speed.