Too many organisations ignore alternatives despite hidden costs
EMBARGOED UNTIL 5PM
Bristol (March 06, 2008) – Lazy buying habits are costing businesses millions in hidden consultancy and supports costs, according to the latest research from IDC.
In an Agresso-sponsored survey "Mid-Market Service Companies' Enterprise Investment Strategies and Adoption Trends", Albert Pang, director of enterprise applications research at IDC found too many companies are overspending on ERP software due to complacency and relying on brand names.
“Companies need to acknowledge the hidden costs of their ERP software following initial implementations,” said Pang. “Many users need to ask whether they should continue to stick to their current ERP system providers. If they don't, it seems to suggest that they are not willing to consider the options of using new, perhaps lesser known vendors. There is either a sense of complacency or one of hopelessness that costs can never be reined in.”
Forty-seven percent of the respondents stated that their financial applications costs exceeded their planned budgets by as much as 100 percent. According to IDC, this buyer complacency to continue down the same path with the same vendors may be costing public and private sector businesses millions of pounds annually.
Eighty-three percent of ERP customers say they will still buy from the same vendor despite cost over-runs and change issues. Pang said that business leaders need to analyse and perhaps adjust their buying behaviour to review a wider array of alternatives before deciding on replacement solutions.
“Enterprise software vendors have to wake up and stop taking customers for granted,” said John Crooks, UK MD of Agresso. “Escalating support costs are killing businesses and this is down to a lack of forward thinking by vendors. Change is part and parcel of modern business and enterprise software has to acknowledge this by being agile enough to not demand expensive consultants every time the business grows. Unfortunately with most ERP vendors this is not the case although we have worked hard to ensure our software is agile enough to not incur huge costs after implementation.”
***IDC’s Albert Pang is available on a 30 minute web conference at 5PM later today – go to https://agresso.webex.com/agresso/onstage/g.php?d=573530433&...
The survey, conducted by IDC as part of its quarterly AppStats Survey, spans more than 250 companies in the U.S. and U.K.
For more information on ERP vendor market share go to: http://idcdocserv.com/208954E
Agresso (www.agresso.com/usa) is a $225 million enterprise resource planning (ERP) subsidiary of Netherlands-based Unit 4 Agresso (Dutch Stock Exchange EURONEXT-U4AGR) and one of the top five providers of ERP solutions for professional services and public sector organizations. Agresso offers a uniquely integrated data/process/ delivery architecture designed specifically for Businesses Living IN Change (BLINC) ™.
Agresso is known as "The ERP Market's Definition of Agility" as it allows an unlimited amount of ongoing, post-implementation changes without the typical external IT costs and intervention that nets billions of dollars in revenue to the market leaders.
Over 2,600 companies and organizations in 100 countries deploy Agresso Business World for both operational support and strategic management. The company’s role-based, Web Services and Services-Oriented Architecture (SOA) enabled solutions include: Financial Management, Human Resources and Payroll, Procurement Management, Project Costing and Billing, Reporting and Analytics and Business Process Automation.
Tel: 01225 580141
Mob: 07966 510702
This press release was distributed by ResponseSource Press Release Wire on behalf of Clarity Communications in the following categories: Business & Finance, Computing & Telecoms, for more information visit https://pressreleasewire.responsesource.com/about.