How to control ERP deployment costs

Implementing an Enterprise Resource Planning (ERP) system is an option to consider for enhancing business performance, but it can be costly and complex. To prevent budget overruns, it is essential to understand the various types of costs involved and implement effective strategies.

Understanding the different types of costs

Software and infrastructure costs of ERP

Pricing Models

One-time Purchase


SaaS (Software as a Service)

Ideal Business Type

Large enterprises with stable requirements

Growing SMEs

Startups/SMEs needing mobility


No monthly or annual license fees

Updates and technical support included

No hardware and maintenance costs


Updates and maintenance may require additional expenses

High long-term costs

Dependence on external servers and Interne

ERP Implementation Costs

Cost estimation for consultation

Consultation Costs for an ERP Project Depend on its Size and Complexity. A simple project incurs lower costs, whereas a complex project involving extensive customization and integration can result in significantly higher expenses.

Implementation and customization

Costs associated with configuring and customizing ERP modules encompass several aspects. Initial configuration, which tailors the ERP to the specific processes of the business, requires time and resources, resulting in upfront fees. Additionally, customizing the system to meet unique needs can incur significant additional costs. Each customized module or functionality must be developed, tested, and validated, thereby increasing the overall project expenses.

User training

The budget for initial and ongoing employee training includes several components. Initial training involves intensive sessions for end users before deployment, ensuring smooth and effective ERP adoption. Additionally, it is crucial to allocate budgets for regular training to keep employee skills current, especially during software updates or the addition of new features.


Technical support costs during and after implementation encompasses various aspects. During implementation, it is critical to include technical support services to swiftly resolve arising issues. Post-implementation, a budget should be allocated for maintenance, updates, and ongoing technical support.


ERP Maintenance cost

Software maintenance

Software maintenance primarily involves software maintenance contracts, which include regular updates, bug fixes, and ongoing technical support. These contracts ensure that the ERP system remains stable, secure, and compliant with new technologies and regulations.


Planning for evolution is crucial to align new functionalities with the company's long-term strategic objectives while maximizing the ERP's return on investment.

Hardware maintenance (for non-cloud-based ERP)

For a non-cloud-based ERP system, hardware maintenance encompasses costs related to hardware replacement, repair, and updates. This component is crucial to ensure the availability and optimal performance of the ERP, requiring careful planning of hardware lifecycles to avoid costly and unexpected interruptions.

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Strategies to adopt to control ERP costs

Selecting the right ERP integrator

  • Assessment of Needs
    A precise assessment of the company's needs allows for clear definition of expectations regarding ERP functionalities and performance. This involves a thorough analysis of business processes to identify essential features that the system must offer. Consulting key users and relevant departments to gather their requirements is also crucial. Choosing a good provider will enable you to conduct an assessment tailored to your business!
  • Development of a Detailed Budget
    Certainly, if you have read the article carefully up to this point, you will be able to define the costs involved in ERP software implementation, but you may not be able to establish an exact budget without professional assistance. One of the best practices you can consider is to budget for contingencies. A good provider will guide you and provide as much detail as possible.
  • Realistic Schedule
    A realistic project schedule with well-defined phases and clear deadlines is essential for cost control. Each project phase should have specific milestones and delivery dates to track progress and promptly identify delays. Flexibility is also crucial to adjust the schedule in case of unexpected delays, minimizing interruptions and additional costs. By establishing a realistic and flexible schedule, the company can ensure that the ERP implementation project progresses in a structured and controlled manner, thereby reducing the risks of cost overruns.

Phased ERP deployment and project management

  • Modular deployment
    During the initial ERP deployment, it's crucial to focus on essential modules. Prioritizing these modules allows your company to quickly reap the benefits of ERP, such as process improvements, without waiting for the full system deployment. A modular approach spreads costs over a longer period, making the project more affordable. Moreover, it reduces risks by testing and stabilizing each module before deploying the next, facilitating gradual user adoption.
  • Adjustments based on feedback: continuous feedback to adapt the project
    Continuous feedback is essential for real-time adaptation of the ERP project. By regularly soliciting input from users and stakeholders, issues can be identified and corrected promptly before they become critical. This proactive approach helps keep the project on track and prevents costs associated with undetected errors.

ERP training and change management

  • Change Management: Developing a Change Management Strategy 
    Change management is crucial for fostering ERP acceptance and minimizing resistance. An effective strategy includes transparent communication, stakeholder involvement, and regular awareness activities. It's essential to communicate project objectives, anticipated benefits, and potential impacts on work processes.
    To overcome resistance, it's vital to educate employees about the benefits of the new ERP through information sessions, practical demonstrations, and interactive workshops. Continuous training is also important to maintain skills and adapt to system evolutions.
  • Involvement of key users: Engage key users from the early stages of the project
    Involving key users from the outset is crucial for ensuring the success of an ERP system. Their experience and knowledge help to precisely understand operational challenges. Engaging them early in the design and planning phases promotes their ownership of the project, reduces resistance to change, and transforms them into advocates for the system within the company. This facilitates its acceptance and adoption.
    User training is essential for ERP success. Programs should be tailored to specific skills and roles, covering all functionalities comprehensively. Training internal super-users is an effective strategy to ensure optimal adoption, provide ongoing support, address questions, and resolve issues, thereby reducing reliance on external support and facilitating rapid system adoption
  • Continuous monitoring and evaluation
    Regular budget controls are essential for maintaining sound financial management of the ERP project. They involve real-time monitoring of expenditures, comparing actual costs to budget forecasts, and swiftly correcting budgetary deviations.
    Establishing frequent financial reports will provide you with a clear and up-to-date view of the project's financial status. These reports include variance analyses, forecasts of future expenses, and recommendations for cost rationalization. They should be communicated transparently to stakeholders to ensure their engagement in the financial management of the ERP project.


Indeed, an ERP represents an investment that can generate significant benefits for businesses! Don't believe us? Read our article to be convinced : 8 benefits of a cloud ERP for your business

Contact us to integrate into your system the right ERP!

Captivea, as leader of Odoo implementation worldwide is the best ERP integrator that you can choose!

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