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How much does ERP cost?

ERP (enterprise resource planning) is an automated tool that gears business operations with the highest quality and accuracy. Small, medium, and large-sizes companies can take high advantage by deploying appropriate ERP systems in their businesses. 

ERP cost

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An Overview Of ERP Cost

ERP holds the potential to digitalize customer relations, sales, marketing, and supply chains while also aiding in managing risks, project, compliance, and procurements at a very reasonable price.

A reasonable software package offering an integrated ERP solution may range between 1 to 2.5 lakhs in India. There are large organizations having a plethora of prestigious ERP software packages to be chosen. They have a price range starting from 25 lakhs to 1 crore. 

In the case of SMEs, numerous vendors offer system solutions ranging from Rs. 60,000 to 6 lakhs since these companies have approx. 1000 employees and have an annual turnover between 30 lakhs to 10 crores. Hence, it is not essential for these organizations to allow all employees to access the ERP.  This makes ERP an affordable investment. 

Now, the implementation of ERP is another aspect that increases the ERP cost and depends on the features required. 

ERP installation

What is the cost of the ERP implementation?

ERP systems solutions should match the budget of a company while also matching every particular need of business. Hence, you should always think wisely, understand the concept, and then go for this long-time investment. 

If you need a customized ERP solution for your business then the implementation costs play a vital role. Be it any industry including construction, travel, or medical, the installation of an ERP system might start from 20 lakhs to 40 lakhs of range. On the other hand, the high-end market would cost the  ERP cost of implementation between 50 lakhs to 1 crore.

Deciding factors for ERP implementation cost

Renewal ERP Cost
 ERP License 

ERP licensing relies on the type you choose. In this case, you do not own the ERP but you have its license. It depends on the budget as well as requirements whether the system is temporary or permanent. 

Amount of users and company size

The implementation of ERP cost also depends on how many users will be using it. A small group of employees will be charged low while the cost of training and the complexity of business operations impacts the cost of a license. 

Industry type

Usually, the ERP cost is identified as per the complexity and the business nature. A manufacturing business having a discrete nature would need to be functional and would involve production management, supply chain management, quality control, and more.

However, an accounting company would revolve around finance, budgets, margins, and more. So, the requirements of every industry are different and it is mandatory to take out some time and rectify which ERP software would be the best fit for your business. Then after, you can apply for the implementation of the ERP  process. 


You should remember that every business is innovative and holds its own nature. The implementation of ERP requires a huge organizational change to fulfill the company’s requirements. Supposed, the ERP system does not fit your business functions then you might need to add some customizations to get it filled. 

The cost of  infrastructure 

The infrastructure cost changes with the deployment option you choose. If you are choosing cloud ERP  implementation then, the comprehensive cost would be quite low since every data will be saved in the storage, fewer IT employees are needed, and also the cost of physical servers will vanish. 

One more thing to notice is that recurrent costs might also incur the cost of ERP. However, the recurrent costs may change according to the vendor. In some cases, ERP vendors might take low initial costs but can keep the renewal cost higher. Usually, the renewal cost of an ERP is approx. 10 to 15 % of the total cost of the software. Upgrades or requirements of other IT-related costs might also be added to the final cost of the ERP.   

ERP Solutions


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