ERP Users need third-party support providers

By Neil Zawacki
Updated: August 17, 2011

Constellation Research, an advisory firm that specializes in emerging technologies, has conducted a survey that indicates more and more ERP software users are considering switching to third-party support providers.

More than half (57%) of the people surveyed stated that they were interested in third-party support. This is a notable rise from the 42% of respondents that gave the same answer the previous year, and the 20% of ERP users who showed interest in making the change back in 2009.

The high cost of ERP software was cited as the predominant reason that users were interested in making the switch. Many of the respondents also indicated that were dissatisfied with the overall value of vendor-provided support they were receiving. Most vendors get the majority of their revenue from yearly maintenance fees that pay for technical support and product upgrades.

Ray Wang, the CEO of Constellation Research, spoke about ERP implementation at a webcast sponsored by Rimini Street. He stated that most ERP systems were more than a decade old and were starting to show their age, and that companies were facing increased demand for consumer-like experiences and tools. He also indicated that switching to a third-party support provider could free up money that could then be used for other projects.