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Platform Strategy

Custom ERP cost in India: the five drivers

Five factors set a custom ERP's price: process variance, integrations, data, first-release modules and on-site work. Measure yours in a week.Brihat Infotech9 Jul 20264 min read

A custom ERP is priced by effort, and five things set that effort: how far your processes depart from the standard, how many other systems it must connect to, how clean your data is, how many modules go live first, and how much work must happen on your premises. Quotes that ignore these five are not comparable. This article does not state a price, because the same list of modules can cost very different amounts for two companies.

1. Process variance

This driver outweighs the rest. Every step that off-the-shelf software could not perform needs design, build, test and training. A plant that follows a common order-to-cash flow needs far less than one with heat-wise costing, batch yield rules or customer-specific pricing.

Ask a bidder: which of our steps did you count as standard, and which as custom? A good answer names steps, not percentages.

2. Integration surface

Each system the ERP has to exchange data with adds work. Banks, tax portals, weighbridges, biometric devices, a customer's purchase system. Three questions decide how much.

  • Does an interface exist? Some systems offer an API. Others allow only file exchange, or nothing at all.
  • Is it two-way? Reading data out is easier than writing it back.
  • Who owns the other end? A supplier's team, with their own calendar, can hold a project for weeks.

India adds a fixed layer for many businesses: GST e-invoices and e-way bills are raised through government portals, with rules on timing and cancellation. See connecting an ERP to the GST portals.

3. The condition of your data

Cleaning effort follows data quality and not record count. Duplicate item codes, mixed units and blank mandatory fields take people-weeks to resolve, and the decisions are the business's to make. A poor master can add a whole phase. Read moving data into a new ERP before you accept a fixed number for this line.

4. Modules in the first phase

A custom ERP does not have to go live all at once. Starting with the module that hurts most (stores, dispatch, or finance close) cuts first-phase cost and brings value earlier. Each added module also adds integration with the others, so the cost does not grow in a straight line. For how phases are ordered, see custom ERP timeline and phases and big-bang versus phased rollout.

5. Work on your premises

Process mapping goes best when engineers watch the shop floor or the finance desk. That means travel, time on site and, sometimes, a team posted in another city for a stretch. Ask whether a quote assumes on-site days, how many, and who pays for travel.

Other lines on a quote

Line What to ask
Discovery Is it priced separately, and do you keep the documents if you stop?
Licences for tools Are there per-user fees for any component?
Hosting Whose cloud account, and who pays the bill?
Change requests Priced in writing before work starts?
Warranty and support What is covered after go-live, and for how long?
Code ownership Does the code sit in your repository from the first commit?

Ownership has its own article: ERP ownership after go-live. For the same exercise across all custom software, see the cost of custom software in India.

Measure yours in a week

  1. List the steps that standard software could not handle. Ask the people who run each department. Count the steps, and rank them by how often they occur.
  2. Count the integrations. For each, note whether an interface exists, whether it is two-way and who owns the other end.
  3. Profile a real data extract. Count duplicates, blanks and unit mismatches in items, vendors and customers.
  4. Name the modules you would put first, and the ones that can wait.
  5. Decide the on-site pattern. How many days, which people, which sites?

With these five sheets you can ask each bidder to price against the same facts.

What a separate discovery phase buys

A discovery phase turns the five answers above into documents: process maps, a data profile, an integration list and a plan with a cost for each phase. You can use it to ask other firms for a quote. One phase costs little compared with building the wrong system. See why projects fail before any code is written.

How to compare two quotes

Put both quotes in one table before you read the totals.

Item Quote A Quote B
Steps counted as custom
Integrations included, and who builds each
Data cleaning: included, or a separate line?
Modules in the first release
On-site days and travel
Support after go-live

Blank cells are the finding. A gap in one quote is a cost that appears later, as a change request. Ask each bidder to fill every cell in writing, and compare only then.

Questions buyers ask

What sets the price of a custom ERP?
Process variance first, then integrations, data condition, first-release modules and on-site work.

Can I get a fixed price?
For a defined phase with a written scope, yes. A single fixed price for an entire ERP before discovery rests on assumptions about the five drivers.

Is custom ERP cheaper than a packaged one?
It depends on your user count and how far your processes differ from the standard. See custom ERP or off-the-shelf for the five-year comparison.

Where Brihat Infotech fits

Brihat Infotech invoices discovery separately and prices fixed-scope work phase by phase; see how Brihat prices work. Start a conversation.

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An engineer at Brihat can talk through anything in this article.

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The first call is 45 minutes with an architect, usually the founder. It is free, and we will sign an NDA first if you ask.