ERP buyers — finance, operations, IT · 9 min read

How to evaluate an ERP vendor and proposal

ERP implementations are the single most common cause of budget overruns, and the pattern is predictable: the costs that blow the budget are the ones excluded from the fixed-fee proposal. This guide covers what to interrogate before you sign an ERP deal — whether it's SAP, Oracle, Microsoft Dynamics, NetSuite, or Workday.

Data migration is the overrun engine

Vendors routinely exclude data cleansing, legacy extraction tooling, and cutover validation from fixed-fee proposals. Demand a data-migration workplan with defined record counts, transformation rules, and UAT criteria before contracting — and a rollback plan for cutover.

Cutover and hypercare

A compressed cutover window (under 48 hours) is a critical risk signal; most ERP go-lives need 72–96 hours of hypercare. Get the hypercare period, staffing level, and a named senior lead into the contract.

Customisation is a future liability

Every customisation to a standard ERP is an upgrade liability and a change-order vector. Require a customisation register before contracting; any customisation costing more than ~15% of licence value should require executive sign-off.

Licence true-ups

ERP licence metrics are complex — named vs concurrent users, module activation, user-count true-ups. These are routine sources of unexpected cost post-go-live. Cap renewal increases and clarify the metering in writing.

Named staffing

The consultants presented in the sales process are almost never the ones assigned. Contractually require named key personnel with CV sign-off and penalties for unilateral substitution.

Frequently asked

What is the biggest risk in an ERP implementation?

Data migration. Vendors routinely exclude data cleansing, legacy extraction tooling, and cutover validation from fixed-fee proposals, and these are the costs that most often blow the budget. Demand a migration workplan with record counts, transformation rules, UAT criteria, and a rollback plan before signing.

Why do ERP projects go over budget?

Because the budget-breaking work — data migration, integrations, customisation, extended hypercare, and change management — is commonly excluded from the fixed-fee proposal and billed later as change orders. Surfacing and pricing those exclusions before signing is the defense.

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