Risks of preferring a Freelancer over a Certified Partner to implement ERP.
The ERP Dilemma: Freelancer v/s. Certified firm
It’s very important for small businesses to choose the right partner. It can significantly impact project success, budget, and overall business efficiency. Two common options are hiring a freelancer or engaging a certified firm with an in-house team. Let's delve into the risks and rewards of each:
Considering the Following Advantages and Disadvantages:
Advantages
Cost: The reason businesses opt for a free lancer over a certified partner firm is the cost. A freelancer who is an individual and doesn’t have any other cost to bare except of himself charges less to implement an ERP system in comparison to a certified partner firm.
Flexible: Working with free lancers is flexible at times for businesses in case of request for a change to implement from the original project requirement. Free lancers can make themselves available to work as per time convenience of businesses.
Domain Expertise: Free Lancer may posses expertise in certain business domains eg. Pharmaceuticals, Construction, Education, Health and Medical facilities etc. which can serve as an added advantage for businesses to implement ERP system
Disadvantages
Limited resources: It’s a one person organization and is dependent on third party for resources such as cloud infrastructure, complex customizations and integrations.
Potential delays: Most of the tasks are performed by the freelancer himself. Delays occur in completion of tasks where customization with third party is also involved.
Communication issues: Communicating with a freelancer can be challenging when he also has other clients to serve at the same time. This leads to delay in response for even a small query to be answered. The same issue can also occur if the project itself is vast with multiple departments to implement the ERP system by a freelancer.
Lack of professional approach: Free lancer usually lack professional approach. He usually doesn’t take timely reviews on project status because of which businesses can never know the exact project status. It would be difficult or rather impossible to hold the freelancer responsible for project failures since there was no Project Progress tracking and no warnings on deviation of the project progress
Limited Support: Limited ongoing support post Go-Live as he may be more inclined to acquire new projects. Freelancers can also have existing customer base to handle their support. Thus also limiting him to offer with no maintenance options. He will not likely to conduct regular project audits to improve efficiency.
Scope Creep: Businesses initially may have underestimated the cost and time required in comparison to the actual complexity of the ERP implementation. As the project progresses, additional requirements or unforeseen challenges may arise, requiring expertise beyond the freelancer's capabilities.Which can finally lead to the rise in cost of implementing an ERP system.
The Certified Advantage
In contrast, certified firms offer:
Proven Expertise: Years of industry experience, a track record of successful implementations, and a certified team of ERP experts.
Dedicated Resources: Access to a team of consultants, developers, and support staff, ensuring efficient project execution and timely resolution of issues.
Structured Approach: Established methodologies and project management frameworks that minimize risks, ensure quality, and deliver projects on time and within budget.
Comprehensive Support: Robust support, maintenance, and training services, ensuring the long-term success and optimal utilization of the ERP system.
Accountability and Transparency: Clear contracts, defined service level agreements, and regular project reviews provide transparency and ensure accountability throughout the implementation process.
Conclusion
While the initial cost savings of hiring a freelancer might seem attractive, the potential risks can outweigh the benefits. The hidden costs of delays, communication issues, limited support, and potential project failures can quickly erode any initial cost advantages.
For businesses seeking a cost effective and a successful ERP implementation, engaging a certified partner with a proven track record and a dedicated team offers a more secure and reliable path to success.
"Alone we can do so little; together we can do so much." - Helen Keller
Written By - Hemant Asaldekar
Image generated by - Leonardo.ai
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