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How Much Does it Cost to Build ERP Software?
Imagine a software that can optimize your internal processes, increase productivity and reduce operational inefficiencies. It can do a lot of wonders to your organizational structure. The ERP system does exactly the same thing. Therefore, it could be very transformative if you implement an Enterprise resources planning system in your organization. As per the statista, It is expected to demonstrate an annual growth rate (CAGR 2025-2029) of 3.97%, leading to a market volume of US$65.29bn by 2029.
One of the first questions that arises when considering ERP solutions is the cost of the development. ERP software development can vary widely depending on several factors, including the complexity of the features, customization requirement, and the scale of the business.
The ballpark estimate of the cost to build ERP software varies between $25,000 and $250,000, depending on project size, features, technology, team, and development process.
For entrepreneurs like you, we’ve created this article to guide you through all the crucial information related to the cost of developing custom ERP software. Whether you’re considering ERP software development services for your business, understanding the key cost factors will help you make an informed decision.”
Let’s start with the blog!
What is Custom ERP Software Development?
When ERP software is designed and developed based on the specific requirements of a business or an organization, it is called ERP software development. The process allows for tailoring features, functionalities, user experiences, interfaces, and integration to suit exact requirements. Compared with off-the-shelf solutions, custom software offers better flexibility, scalability, enhanced security, and efficiency. It can help you to achieve all your goals, from workflow automation to streamlining business operations.
However, ERP software development costs depend on the specific business requirements. So, the better idea is to take the help of a custom ERP software development company for exact cost estimation.
Cost to Build ERP Software
Now, let’s get to the pivotal question—how much does it cost to build custom ERP software? It starts from $20,000 and can go up to $250,000 or more, as the world has no limit.
If your project scope is limited and requirements are basic, then a small-sized ERP software development cost range is $20,000-$30,000, while mid-sized projects range from $30,000 to $40,000. Advanced versions can cost anywhere from $50,000 to $250,000.
Let’s make it more simple!
| S.No | Complexity | Estimated Cost | Development Timeline |
|---|---|---|---|
| 1 | MVP, aka. Minimum Viable Product | Starts from $10,000 | 3-4 Weeks |
| 2 | Basic ERP Software | $20,000-$30,000 | 3-7 Weeks |
| 3 | Intermediate ERP Software | $30,000-$50,000 | 7-12 Weeks |
| 4 | Advanced ERP Software | $50,000+ | 12-24 Weeks or more |
Factors Affecting the Cost to Build ERP Software
A common mistake when thinking about the cost of ERP software development is ignoring influential factors. So, let’s explore the key factors that affect the cost to develop ERP software one by one.
1. The Software’s Size
Some readers might wonder—what does ‘ERP software size’ mean? In simple terms, software size refers to the number of screens it contains. A screen can be anything a user interacts with, such as a login page, an open menu, or an admin dashboard. Other factors influencing software size include the number of modules, lines of code, and overall code size, which can range from kilobytes (KB) to megabytes (MB) and more.
2. The Software’s Complexity
Let’s understand the complexity—one of the influential factors in the cost to build custom ERP software. For example, a simple login functionality is less complex than the ones using two-factor authentication. Similarly, adding innovative features increases the complexity and, therefore, the price. So, it works like the more the complexity, the more the cost.
3. The Software’s Design
The design of software plays a crucial role in user experience, engagement, and cost.A visually appealing interface, tailored to user preferences, enhances the aesthetics of your app or software. Stunning UI/UX designs are the result of a complex process that involves technology, tools, and efforts—all of which impact the overall cost of custom software development.
4. The Platform
It’s your choice whether to develop your ERP software for a single or multiple platforms, but cost vary depending on the platform. A cost-effective approach is to opt for cross-platform ERP software development, allowing you to target and reach a larger audience.
5. The Technology
The tools and technology to build ERP software play a crucial role, impacting the cost. Some technologies are open source and freely available, while others require licensing or subscription fees that increase the cost. However, technologies like low-code/No-Code allow one to curb ERP software development price.
6. The Development Team
Customized ERP software development requires an experienced team with a proven track record to ensure quality.The hiring cost covers one of the major portions of the budget and is influenced by the experience of developers, team size, and geographic locations. Another key factor is engagement models such as time & material, dedicated hiring, and hiring part-time. Each engagement model has a different price, influencing the overall development cost.
7. Integrations
Integrations extend the functionality of ERP software, such as integrating it with an existing system or API integration. Sometimes integration requires effortseffort, while others come with a significant cost. For instance, certain payment gateway integrations may incur fees, while others may be free, depending on the specific requirements.
8. Software Maintenance
The ERP software development life cycle doesn’t end at the launch.Ensuring smooth performance, robust security, and a bug-free experience is crucial. The maintenance and upgradation also influence the cost. It requires 15-20% of the overall project development cost, which you can verify with your custom software development services provider.
Must-have Features to Build ERP software
- UI/UX: easy to navigate, consistent layout, and device responsiveness.
- Functionality: fulfilling software’s primary purpose.
- Data Handling: reliable data handling, including robust security.
- Error Handling: Helps users to understand and resolve the issues.
- Customization: allows the user to customize software for their needs.
- Integrations: the ability to connect with the existing system, addition of APIs and tools to extend the functionality.
- Scalability: the ability to scale with growing business and user requirements.
- Performance optimization: effectively high performance while processing large data.
- Notifications: notifying users about issues and updates.
- Analytics: It helps businesses to make informed decisions based on data-driven insights.
How Can The NineHertz Help You in Custom ERP Software Development?
The NineHertz, as one of the top software development companies, excels at delivering innovative bespoke software solutions to businesses across all industries. We have a team of talented software developers with a proven track record in developing outstanding software for our clients.
With years of industry experience, we have developed a streamlined process that enables us to create and deliver high-quality ERP software solutions at optimized cost. Our transparency, commitment, and dedication toward our clients make us the right choice for ERP software development. Leveraging our expertise, we can assure you of an exceptional software experience.
Conclusion
The cost of ERP software development depends on several factors, including the size of your business, the level of customization, and whether you choose a cloud-based or on-premises solution. While off-the-shelf ERP systems tend to be more affordable, custom ERP systems offer greater flexibility and functionality, albeit at a higher cost. By understanding these factors and planning your ERP implementation carefully, you can find an ERP solution that fits both your budget and your business needs.
Before moving forward with an ERP system, it’s crucial to evaluate your business requirements, assess potential vendors, and carefully calculate the total cost of ownership, including support and maintenance costs. With the right ERP system in place, your business can benefit from increased efficiency, reduced operational costs, and better decision-making.
Frequently Asked Questions
How to Create ERP Software?
ERP Software development requires expertise, so the better idea is to hire a trusted software development company—The NineHertz—to create an outstanding software solution.
How Much Does ERP Software Development Cost?
The cost to develop custom ERP software depends on multiple factors, and it’s tricky enough to determine the cost without a requirement analysis. If you need an accurate estimate, share your requirements with us, and we’ll get back to you with a detailed estimate after evaluating your requirements.
How to Reduce the Cost to Build ERP Software Development?
Prioritizing essential features, using open-source technologies, and offshore ERP software development can help you curb the software development expenses.
How long does it take to build custom ERP software?
The development timeline depends on the software’s size, design complexity, features, integrations, tech stack, and expertise of the development team. The average time to develop custom software is approximately 1 to 6 months, and if you need an advanced version, it may take a year or more.
