ERP, or Enterprise Resource Planning, is off to a running start in India. Enterprise Resource Planning at its most basic level is simply planning for the use of resources throughout your enterprise, or business. When properly implemented, ERP can save your company thousands or even millions of dollars. When the wrong ERP plan is chosen or the right plan is chosen but roll-out is faulty, it can cost your company huge sums of money.

India has become a leading business partner for many U.S. companies. Many Indian companies have embraced ERP software solutions, either from one company or by combining different software products from different companies into a "suite" that serves their needs.

An argument has been made that an Enterprise Resource Plan will reduce the number of jobs available in a given company. However, the employee that was running around gathering all the data and reports that used to be required to make decisions can now be participating in the decisions, using the ERP software.

Especially as business goes global, having information not only on your company’s infrastructure, but staffing, accounting requirements and departmental workloads provides the informational basis to make good decisions going forward. ERP helps Indian companies stretch their wings and work within a global field.

Indian ERP can help companies in India operate at the same level as their international counterparts. However, infrastructure challenges within India still present problems for these companies that companies in other countries don’t face.

Electricity and telecommunication challenges within India may slow the progress of ERP software within Indian companies. In the vast majority of India, a steady supply of electricity is not a given. Regular disruptions halt business in all but the largest cities.

Telecommunications are far more reliable, and that’s one reason India has risen to the top of countries for outsourced call center work from U.S. companies. However, when the electricity goes out, it can affect the call centers as well.

ERP is a forward-looking tool, and until the company can reasonably expect smooth sailing with standard business requirements, like electricity, it’s difficult to use Enterprise Resource Planning to its full extent.

India is growing at an enormous rate, and ERP may be one of the reasons. United States companies have outsourced work to India, of course, but many Indian-owned companies have also begun participating in global business practices.

Enterprise Resource Planning may seem expensive. One comprehensive software package or a combination of multiple software programs can set a company back tens of thousands of dollars, especially if multiple licenses are involved.

But especially for Indian companies, who are trying to vault from small unknowns to players on a global stage, the cost has to be figured against the potential benefits to the company.

Another cost that companies rarely consider is the manpower costs of having personnel gather and analyze all the data that an ERP program does for you. Also, what about the more intangible costs of being able to offer employees a job that’s more challenging? That clerk who gathers all this information currently could be trained for a more demanding job that brings a higher value to both the employee and the company.

From a long-term planning perspective, and even given the infrastructure challenges that face India today, ERP software is a good investment for a forward-looking company.