An increasing number of companies, especially SMEs, are now looking at adopting ERP solutions on the software as a services (SaaS) model for faster deployment and enhanced cost effectiveness, research firm Gartner said on Monday.
An increasing number of companies, especially SMEs, are now looking at adopting ERP solutions on the software as a services (SaaS) model for faster deployment and enhanced cost effectiveness, research firm Gartner said on Monday.
According to Gartner, SaaS ERP in India is expected to grow at a compound annual growth rate (CAGR) of 28 per cent.
Gartner estimates that there are over 1,000 user organisations that have adopted SaaS-based ERP in India and China combined.
However, SaaS ERP applications in India and China constitute less than five per cent of the overall ERP market in India and China.
SaaS is a delivery model in which software and associated data are centrally hosted on the cloud and can be accessed through a web browser.
Other Gartner reports suggest that on-premise ERP market in India is expected to touch $538 million by 2017 from $178 million in 2013, growing at a CAGR of 17 per cent.
Both in India and China, SaaS-based ERP has not yet been widely adopted for mission-critical operations, verticals that are heavily regulated like banking, telecom and public sector, or in specific manufacturing operations that tend to be too sensitive to be shared with a third-party organisation.
Challenges in SaaS ERP adoption include limited flexibility of customisation, issues with data security and network.
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