ERP Software Development – Tips to Consider Before Signing a Contract

ERP Software Development

ERP Software Development – Tips to Consider Before Signing a Contract

ERP Software Development – Tips to Consider Before Signing a Contract 1280 720 Visvendra Singh Visvendra Singh

ERP Software Development – 10 Tips to Consider Before Signing a Contract with a Development Company

Getting the desired enterprise resource planning software can become a cumbersome process. This blog features a list of the top 10 tips that you should consider before signing an ERP software development contract with a development company to get more out of the deal.

The Enterprise Resource Planning software plays a crucial role in managing the day-to-day business activities from scratch to end-to-end consumer operations. It enables business efficiency by offering various inputs and insights required for business activities to gain maximum output through the business processes. The desired ERP system takes care of everything from supply chain management to invoice tracking. It is advised to access important points before signing a contract to get the best out of the deal. This will also enable you to leverage the benefits of ERP software efficiently.

ERP Software Development: Understanding the Scope

The ERP software development contract should specify certain areas and the scope of the work. This is necessary to identify how the project will go on and what the will be expected deliverables. This is crucial to get a clear view of every expectation before closing the deal with the software development company. This not only enables you to get a perfect solution but will also help you to identify your requirements and goals in a better way.

Top 10 Tips to Consider Before Signing an ERP Software Development Contract

The software development contract is just an entry point toward finding the right developer or company to develop your solution as per the requirements. Here are various tips that will offer you insights into essential practices that need to be followed before signing a contract for ERP software development.

1. Requirement Analysis for Clear Goals:

It is recommended to discuss the objectives of enterprise resource planning within your organization. As the structure of every organization differs from one another, specifying your case scenario can help you brainstorm on various points and essential features to attain clear objectives from the ERP system. You can also ask the company to deliver insights on the objectives planned as per your requirements. This will help you get the desired solution.

2. Ask for Software Specifications:

Once you identified your potential requirements, it is now time to ask for software specifications and features that a company might offer you as per the business structure and aligned goals. It should give you a clear idea of how the ERP software will solve your problems and help you attain your business goals. The specification document consists of technical information, essential features, objectives, and goals of the product in a detailed manner.

Software Development

3. Scope of Negotiation:

There is always a scope for negotiation before really jumping into the contract with the development company. You can ask for cutting a few costs and scaling down features if required to lower the development costs. However, this might also require eliminating some of the features as planned while some companies may extend the best discount as per the relationship & courtesy. It completely depends upon your terms to negotiate the offer.

4. Consider Timelines:

Time can be a crucial factor in the matter of businesses getting software delivered on time. The development cycle should specify the milestones as per the timelines to achieve the completion of the project in the desired time frame. In some cases, time also incurs more cost so it should be checked properly with the company as per the pricing model.

5. Project Cost:

The budget should be specified as per the needs and requirements of the project. You can also cross-check the project costs with different vendors to check if one gives you better services than the other. It is quite obvious in the competitive marketplace to look for the company offering you the best features as per the budget.

6. Nature of Development (Proprietary or Open-Source):

Software development needs to be flexible and agile to offer a scope for improvement at a later stage. It is quite important to choose the development options to get a clear view of the limitations in terms of adding new features and recurring licensing costs. It should be specified whether the company is using open-source frameworks or it will offer a proprietary solution. The major cost depends upon the nature of the project development framework.

7. Always Prioritize Features Before Pricing:

The essential features can help you get more return on investment. It is recommended to follow the feature-first approach to gain long-term benefits through the ERP software for your business. It is important to negotiate on pricing but not at the cost of features as it is essential in terms of solving business problems.

8. Identify Usability And Training Costs:

In the age of improved user experience, you should focus on developing software that should offer ease of access without increasing the hassles of training costs. It is quite important to focus on usability to make it easily adaptable within your organization.

9. Testing And Review Scope:

Access whether the development company will adapt to the employees’ inputs or not. ERP is going to be used by the company workforce. So, this is quite crucial to see if they can accommodate employee experience and feedback in the development scope to focus on the user-friendly approach of the ERP system.

10. Technical Support And Maintenance:

This can be considered a crucial aspect in the long term. The company should get a clear view of the AMC(Annual Maintenance Contract) with the ERP software development company so that any technical issues can be solved promptly. It is also important to identify additional costs revolving around the same.


These are the crucial tips to help you get the best out of ERP Project development. Since there is a lot of competition in the market, this is quite a great approach to choose from an experienced company that can satisfy your requirements as per the specified budget. You can also consult ERP specialists to find the best solution for your business.