ERP Implementation Tenders in India

Introduction:  ERP or Enterprise Resource Planning is a software system that helps organizations to automate and manage core business process for optimal performances. ERP software connects the data flow between the company's business process by providing of a single source of streamlining and truth operations across the enterprise. The system is capable to link an organization's financials, supply chain, operations, commence, reporting, manufacturing, and human resource activities in one platform. ERP has several types, such as Cloud computing, Hybrid ERP, IFS ERP, Oracle, SAP business and so on. Finance requires an ERP to quickly close the books, sales needs ERP to manage all the customers. Logistics depends on smooth – running ERP software to deliver the accurate products and services customers on time. Accounts payable needs ERP needs to pay suppliers correctly and on time. Management needs instant visibility into the company's performance to make the right decision at the right time. 

Yearly Analysis of ERP Tenders: The government agencies in India have increasingly adopted enterprise scale systems in the recent years. During the last year, a total of 351 ERP tenders were advertised by the government agencies in India. Of these, the maximum number of tenders were published in Maharashtra at 79, followed by 59 tenders in Delhi and 30 tenders in the State of Uttar Pradesh. These 351 tenders were published by a total of 169 agencies of which Mumbai Metro Rail Corporation limited was ranked at the top with 17 tenders. The Mumbai Metropolitan Region Department Authority (MMRDA) advertised 13 tenders for ERP implementation. 

SAP ERP Tenders: About 1/3rd of the tenders (i.e., 112 out of the 351 tenders) published by the Government agencies sought the implementation of SAP ERP software. SAP is a well-established ERP platform implemented by large agencies across the world. SAP business allows businesses to strengthen customer relationships and enhance business agility while gaining an integrated view of business. SAP's ERP solution provides a wide range of business scopes of business data challenges. This could be filtered through business analytics, machine learning processes and so on. The system called 'SAP S4 HANA' gives users actionable insights by enabling them to make informed business decisions. A variety of SAP tenders were advertised such as the procurement of SLES licenses. This tender was published by the Hindustan Petroleum Corporation Limited. Many government agencies such as Delhi Transco Limited and Madras Fertilizers limited sought to purchased maintenance and post implementation support for the SAP software implemented in their organizations. Also, tenders were published to enhance an existing SAP implementation. For example, the Maharashtra State Electricity Distribution Limited sought to upgrade from SAP ECC Platform to SAP S/4 HANA Platform for the TRM and Cash Management module. Many such SAP ERP tenders were published by government agencies. 

ERP in Cloud: There is a growing trend towards implementation of ERP systems in the cloud environment. About 1/10th of the tenders (i.e. 25 tenders) were published for implementation of ERP systems in the cloud environment. For example, North East Karnataka Road Transport Corporation sought to implement financial management software in a cloud based set-up. The Indian Oil Corporation sought to implement SAP business technology platform in a cloud set-up as well. 

ERP Implementation duration: Our study shows that many ERP projects were to be implemented and managed for a period of 3 years. A few of the tenders were to be implemented and maintained for a period of 5 years. For example, the Bangalore Metro Rail Corporation Limited sought to implement and maintain an ERP system for a period of 5 years. Similarly, Maharashtra State Electricity Distribution Co. Ltd called for the selection of a system integrator to manage its ERP system for a period of 5 years. 

ERP contract value: Though estimate is not published for many of the tenders, in a few cases the estimated tender value was published. The tender advertise by the West Bengal State Electricity Distribution Company limited is estimated at 12 Crores. The tender published by the Container Corporation of India Limited is estimated at 81.12 Crores and it included the following scope: Upgradation of on Premise Hardware, Software and Licenses for Financial Accounting System ERP, Data Warehousing - DWH, Document Management System -DMS and Web-Servers, Application Servers for e-Filling of -ETMS, CCLS, DTMS and eMB. Another high value tender was published by RRVPN in the State of Rajasthan with an estimate value of INR 22.52 Crores: Annual Maintenance Support of SAP ERP and other applications for 5 years and Up-gradation / Migration of SAP ECC version (Cloud) to SAP S/4 HANA SaaS (Software as a service) model at Bhamashah State Data Center (BSDC).

ERP in the Education Sector: Though ERP was widely implemented in the industries, the education sector as well implemented ERP. For example, the Higher Education department in Odisha State advertised a tender for the selection of a service provider for development and implementation of ERP system. The Education department in the Karnataka state advertised an end to end ERP software to manage its examination systems. In Gujarat, implementation of ERP systems was sought for managing the university operations. 

Live Tender Analysis: As of 25th February 2024, there were 21 live tenders for ERP implementation. Of which, Karnataka was ranked at the top with 4 live tenders followed by West Bengal, Uttar Pradesh and Haryana at 3 tenders each. The rest of the tenders were published in Andhra Pradesh Kerala and Haryana. 

Image Caption

 

Conclusion: ERP is an important software system that helps organizations to automate and manage core business process for optimal performances. The system can link an organization's financials, supply chain, operations, commence, reporting, manufacturing, and human resource activities in one platform. The analysis given above shows a significant demand for ERP system across sectors and states in India. A few of the opportunities were high value tenders exceeding 50 Crores. Also, many of the tenders sought implementation of these IT systems over a period of 3-5 years. The fast growing IT companies in India would do well to monitor these opportunities and make an effort to win a large slice by submitting their bids.