In recent times the outsourcing of ERP applications has become a trend; however, the process is loaded with risks. The cognizance of issues in outsourcing of ERP products and services are exceedingly important for a global IT manager. Chauhan, Dwivedi, and Sherry (2012) compiled a list of significant factors in ERP offshoring. The first crucial factor is the senior management’s role, because the ERP implementation faces a lot of inter-organizational resistance. The senior managers need to govern the ERP offshoring process, and make tough decisions wherever required. Furthermore, in terms of project management, the ERP offshoring needs micro-management of the entire process, as many tasks are handled by the off-shore teams. A good project manager makes sure that the work in all locations is synchronized, and is properly following the standards and protocols laid out in the ERP offshoring process (Chauhan et al., 2012).
Chauhan et al. (2012) also suggested that another critical success factor is the composition of the project team. The ERP offshoring team members should be capable of handling cross-functional tasks, and the domain knowledge is also immensely decisive. Moreover, communication between the on-site and off-shore teams is also a crucial factor, along with the distribution of the work between the teams in two locations. Additionally, clarity in the definition of the work is essential (Chauhan et al., 2012).
In addition, Chauhan et al. (2012) highlighted that the experience and the trust factor of the offshoring partner are vital requirements. As offshoring is a long term engagement, the financial stability of the partner is imperative. Finally, the infrastruc...
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...plication, but as a system that would comprehensively alter the current organization to make it work more effectively and efficiently in the future. The success of the ERP implementation depends a lot on the top management dedication and the strategies they develop to handle the implementation process. Establishing a perfect global project team, utilizing sound global project management techniques, and finalizing an accurate scope of the project, are the most important implementation requirements for the success of an ERP system. Efficient handling of the TDF requirements, and understanding the substance and appositeness of the GII are also the key necessities. Consequently, the continuous monitoring of the system after the successful implementation mandates that the ERP system will keep producing numerous benefits to the organization that it was supposed to provide.
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