Consolidation is Key in Reducing ERP Support Costs

April, 2008

(IRVINE, Calif.) Organizations wanting to optimize their ERP support costs should strongly consider consolidating and standardizing on a single version and instance of their primary vendor’s platform., according to a new major study by Computer Economics, a IT research and advisory  firm.

The study, based on a survey of more than 100 ERP users, found that factors such as vendor, age of installation, extent of customization, and scope of functionality had less impact on staffing requirements than the number of instances and versions a company is running.

Companies running a single version of an ERP application, for example, typically require only one support staff member for every 40 users, while organizations running more than one version required one staff member for every 28 users.

“The most striking trend in our analysis is the relationship between the number of users and the productivity of support personnel,’ said Frank Scavo, president of Computer Economics. “The obvious conclusion is that a single instance of a single version of a single vendor’s system is more economical than running a variety of systems, versions, and copies.”

The full report, ERP Support Staffing Ratios, provides an in-depth analysis of the various factors that affect the support requirements for ERP systems.