What is the Cost to Develop an ERP Software?

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Enterprise resource planning tools are what keep digital businesses running. They claim that all the information moving through the industry area will be seamlessly integrated to make the company digital. Putting in place an ERP system has already changed many areas of companies, including finance, healthcare, human resources, customers, and more.

These programs can help companies with many practical problems, which make them more successful and help them grow. A custom ERP software developer makes things easier by combining different business functions and processes into a single system.

Why Do Companies Need to Develop ERP Software?

The ERP business is still increasing; by 2025, it will be worth more than $49.5 billion. In an uncontrolled system, different business processes in a company use other programs to handle the same tasks. This can make it hard to send data, take a long time, and leave security holes. An ERP system’s single interface links all of these tasks.

  • Users can quickly access data through a central screen, which features like controlling who can see what data and making it safer.
  • An ERP system can significantly increase output in many ways. One way is that it handles many simple, routine jobs, freeing workers to work on more important projects for the company.

How Much Does It Cost to Develop ERP Software?

An ERP study from 2022 found that an ERP project costs $9000 per user on average. An ERP setup for a medium-sized business can cost anywhere from $150,000 to $750,000, depending on how many people will use the system and other costs.

You will have to show that the ERP cost is worth it by picking the right price plan for your business, being very clear about what features and tools you need, and how you expect the custom ERP software developer to make you money. Thinking deeply about your choice is essential because not all features will help all businesses. However, some basic features you need are:

  • Financial Management
  • Sales and marketing
  • CRM
  • HR Management
  • SCM
  • Manufacturing and production
  • Managing your inventory

Installing the software will be different depending on the source and the business. This is especially true if you choose an on-premise plan but still need the proper hardware.

Factors Affecting the Cost of Developing ERP Software 

For small businesses using open-source software, implementing ERP can cost nothing. Mega-corporations will need millions of dollars. Here are the most important things you should think about when figuring out where your business fits on the scale:

  • Number of Users

When choosing whether an ERP system is cheap for your business, you should consider how many people will be using the system at first. Many custom ERP software developer charge by the user.

  • Number of Features

You should consider not only how many people your ERP system will have but also what benefits it should have. These include shared systems, automation, talking to each other, analyzing data, and more. Overall, the cost of making an ERP system increases as more features are added.

  • Size and Complexity of the Business

You need to determine the project’s size. This usually depends on how the product you’re making works and what benefits it offers.

  • Customization Requirements

You can add third-party add-ons to give your workers a full range of services and tools. You can also add extra features to the system you’re working on by adding sections like supply chain management.

  • Implementation

Whether or not to hire a Custom ERP software developer to speed up the ERP adoption process may depend on how technically skilled the people in your business are. Even though most companies offer support, which usually includes installation and training for employees, you may still want extra help to ensure the rollout goes smoothly.

  • Development Hours

Another significant factor in the cost of ERP software is the number of workers needed. The number of workers has a direct effect on the time it takes to make ERP software.

  • Upgrades and Training

As soon as a new version of your ERP system comes out, you’ll need to start making plans for the change. You need to ask your provider how often changes happen and if the price of these updates is part of the paramount price of building the ERP system. Your workers might need help or training to use a new ERP system immediately.

  • Software Developers’ Location

Choosing the right place can drastically reduce the cost of creating unique software. Some places have low-cost talent draws, while others charge more because they need more skilled workers and have better living standards.


How much it costs to build an ERP system from the start for your business mainly relies on its size, methods, and whether the software is built in-house or by a third party. To figure out how much the custom ERP software developer will charge, you should look at the pay rate of each member of a fully-staffed committed team, the modules and features of a custom ERP system, and the length of time it takes to create the core ERP components through the SDLC steps.

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