Why Hiring Contractors isn't the Cost-Effective Option for ERP Training?

Why Hiring Contractors isn’t the Cost-Effective Option for ERP Training?

Did you know the rate of failure of ERP implementation is between 55% – 75% for most of the organizations? Wondering how you can avoid falling into this bracket? It’s crucial is to consider the most cost-effective and operationally efficient way to manage a smooth ERP implementation.

So, let’s talk solutions. The best way to ensure ERP implementation success is to produce a tailored user adoption program, with the support of either an ERP training consultancy, or an individual ERP training contractor(s).

But here’s the thing: organizations are quite often confused when it comes to making a decision between the two. ERP training consultancies and training contractors are like the apples and oranges of this industry. Both can make a significant impact on your ERP implementation for your organization. So, making a decision between the two can make a lot of difference.

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Key Takeaways:

  • What is an ERP Training Contractor?
  • Why isn’t it Feasible to Hire an ERP Training Contractor?
  • Difference Between ERP Training Contractors and ERP Training Consultancy
  • Actionable Adverbs
  • Common Questions on ERP Training Contractors and Training Consultancy

What is an ERP Training Contractor?

Generally speaking, training contractors are professionals who are fairly acquainted with specific ERP systems. They provide training services, both material development and training related to ERP system and help organizations manage and implement ERP systems. 

However, it is worth noting that contractors are usually more concerned with completing a specific task according to specifications than they are with achieving optimal business results.

Since they do not have the same level of interaction or access to the suppliers’ development funnel as large consultancy partners, they also normally do not have the most recent insight on the recent changes within major ERP suppliers.

ERP Training Contractors work for a company to complete a certain job or project. The client is directly in charge of overseeing the contractor. Therefore, the customer has the responsibility of supervising the contractor’s job/ project risks, encompassing quality control, prompt delivery, and overall performance supervision.

Why isn’t it Feasible to Hire an ERP Training Contractor?

ERP implementation is a huge change for any organization’s operations. To ensure effective ERP implementation, companies need to hire professional personnel who are well-versed in the functioning of an ERP platform, how it’s used within their industry and how best train their employees in using the new application. 

In some circumstances, hiring an ERP training contractor can be a wise strategic move. However, there are numerous reasons for companies not to depend only on training contractors for their ERP projects.

  • They generally charge premium rates, which results in expensive project expenses. These expenses can rise rapidly, especially in the case of long-term initiatives or those needing specific expertise.
  • Organizations with limited funds may find it challenging to pay ERP contractors’ rates, which could force them to make concessions on the scope or caliber of their projects.
  • It might not be possible to incorporate contractors to the same degree as full-time staff. As a result, they might not have the same dedication to your business.
  • It may be more difficult to transfer knowledge, and there may be delays if contractors are hired to develop software and later removed from the project. 
  • The cohesiveness of the team and the culture of the business may be impacted by this lack of inclusion, particularly if a significant number of the workforce are contractors. However, this is typically not a major problem when there is a suitable balance between employees and contractors.  
  • An ERP contractor might lack in-depth industry expertise, which makes it challenging for them to create ERP training solutions that meet the demands and difficulties unique to the sector.
  • ERP Training Contractors are usually hired for a set period of time. However, ERP implementation timelines regularly slip, which could mean you’re paying for a Training Contractor effective sit on the bench whilst they wait for the system build to be readied.
  • The final concern is that you’re reliant upon one individual. Should that ERP Training Contractors become unavailable to work for whatever reason, the development of training materials or indeed training delivery itself come grind to a halt.

Difference Between ERP Training Contractors and ERP Training Consultancies

ERP training consultancies offer professional and experienced advice to companies that do not have the necessary in-house knowledge and understanding of managing the user adoption phase of an ERP implementation. Typically, the services are associated with a specific goal with mutually determined deadlines and deliverables, and the consulting organization is in charge of overseeing the participants (or shares oversight with the client). These typically then work hand in hand with either a change or training lead, or the ERP project manager themselves.

An ERP training contractor is an experienced professional engaged on a project-by-project or short-term basis to carry out specific tasks or operations associated with the development and delivery of ERP software training.

Operations of ERP Training Contractor and an ERP Training Consultancy

The major difference between an ERP training contractor and a training consultant is in the way they work with the organization: 

Expertise in the industry

In addition to keeping updated on the most recent advancements in ERP, an ERP training consultancy ensures that you have access to the most cutting-edge and practical solutions. Their vast experience and understanding may help your company avoid expensive errors and delays, which will ultimately result in an easier and more fruitful execution procedure.

On the other hand, ERP contractors may lack in-depth industry knowledge, which makes it challenging for them to create ERP solutions that meet the demands and difficulties unique to the sector. Furthermore, they may lack an understanding of the company’s distinct culture, beliefs, and internal processes.

Quality of work

Hiring numerous individual contractors can lead to a wide range of quality outcomes, particularly if their methods differ. As a result, the outcomes are inconsistent. ERP training consultancies, on the other hand, use a proven methodology, templates and approaches, ensuring that all outputs for ERP training are consistent.

Due to their commitment to the project’s success, ERP training consultancies are more likely than contractors to put the goals of the company first. Contractors may have competing interests, especially since they may be driven to bill more hours by nature due to being self-employed.

Cost-Effectiveness

There are numerous underlying costs associated with engaging a contractor. One significant disadvantage is that contractors typically require a 6 to 12-month term and are, therefore, less flexible. Timelines for ERP projects are constantly susceptible to modification, with go live dates regularly moving.

Over the course of an ERP implementation project, an ERP training consultancy is more affordable because you pay for the days that you require. There is very little downtime because each project will start with an initial period of time that has been agreed upon. This enables them to put in the number of days the customer requests in order to fulfil their deadlines.

An ERP consultancy can also create a customized strategy based on your individual company goals to ensure the learning phase matches your organization’s expectations. This includes reviewing your existing operations, finding areas for improvements, and developing a customized ERP training program that corresponds with your company’s objectives. Collaborating with an ERP training consultancy will help you make sure the adoption phase lives up to your expectations and benefits your users in the long run.

At a Glance: Key Differences

ERP consultant vs contractor for Enterprise software implementation

Actionable Adverbs

There is no one-size-fits-all solution when it comes to selecting between hiring consultants and contractors. Each strategy has pros and cons of its own, and the best option will rely on your business’s specific needs, the demands of the project, and your long-term objectives.

When navigating the challenges of an ERP implementation, an ERP consultant can be your guiding light. Their knowledge and expertise may result in easier integration and success over time. Ultimately, the goal is to come to an informed choice. Think about the present and future goals of your company, as well as the possible influence of an ERP consultant. 

Fulfilling all your ERP implementation consultant needs, Onboard has a skilled team of expert ERP consultants with a proven methodology that would ease the training for ERP implementation at your organization. Get in touch with us today to secure your ERP implementation process. 

Common Questions on ERP Training Contractors and ERP Training Consultancies

Q1. How do I choose an ERP training consultant?

Select a consultant who is well-versed in the operations of your company and its specific challenges. A successful implementation will depend on finding the right partners, and when it comes to ERP training, they don’t get any more experienced than Onboard.

Q2. What kind of training is required for ERP?

Functional training should be  provided for end users prior to ERP deployment. A team of workers will be able to use the ERP system to its optimum potential after completing this functional training. It will facilitate the benefits of the solution for the end users.

Q3. What are the 3 characteristics of an ERP?

ERP systems have three key features: a central database that allows for reliable and latest data migration and access across departments, versatility to allow for selected module integration, and adaptability to adapt to specific business processes. 

Q4. What is ERP vs CRM?

A customer relationship management (CRM) system might help companies manage their client interactions. However, you can manage many parts of your organization, such as manufacturing, distribution, finances, HR etc, in one location using an enterprise resource planning (ERP) system.

Sources

https://www.optimum.co.uk/whitepaper/erp-training-why-hiring-contractors-isnt-the-cost-effective-option/

https://www.optimum.co.uk/whitepaper/consultants-vs-contractors-for-erp-training/

https://erp.today/comparing-erp-apples-and-oranges-consultant-vs-contractor/

https://www.dynexusgroup.com/tips-for-hiring-an-erp-contractor-or-erp-consultant/

https://curiousblogger.com/benefits-hiring-erp-consultant/

Jordan Locke
Jordan Locke
Service and Delivery Manager

While Jordan was studying International Business and Politics in South Korea, he gained his first experience of teaching while working as an English teacher at the university. This is where he gained an insight into how valuable to the learner it can be to impart knowledge in a way thatis simple and accessible. He recognised these skills could be transferable to business systems training and hasn't looked back. Jordan has progressed with the business from developing and delivering a variety of training solutions to now taking on the role of Service and Delivery Manager, overseeing the operations of the business.

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