Saturday, June 13, 2009

Why do ERP consultants charge a high fee?

ERP consultants operate in the "high risk high reward" area. Contemporary ERP software are complex pieces which need years to master. ERP consultants invest significant amount of time and effort, which need to be rewarded. ERP Consultancy is also given to the highest levels of management often at the level of CEO. CEO level consulting cannot come cheap. A well-implemented ERP can translate to crores of rupees of saving for an organization justifying once again the high cost of ERP consultants. ERP consultants also combine a rare combination of communication skill, domain knowledge and software expertise, once again justifying the high cost. Last, but not the least, ERP sales are growing fast and the demand for ERP consultants is all time high. The gap in supply-demand also explains the unusually high cost of ERP consultants.

This is what is said by an ERP Consultant :
"I am working in South east asia dollars for 2 years and I earn 1.75 lakhs Indian Rupees per month(converted). If I move to Chennai, how much can I quote as a salary? I hear different views from different people. Some say the market is down and companies would pay me not more than 9 lakhs. The others say compaies are ready to pay more than 12 lakhs easily."

1 comment:

  1. You are absolutely right in giving the reason that ERP software are very complex software which need years to master and people involved have spent much time and thus they need reward for same.
    sap project management

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