India is expected to present ERP (enterprise resource planning) suppliers an important market place as manufacturing companies are significantly investing in technology solutions to improve their manufacturing operations.
The Indian ERP market is expected to see a CAGR (compounded annual growth rate) of 25.2 percent over the next five years. The market was $83 million in 2004, and is projected to be over $250 million in 2009, according to an ARC Advisory Group research report on "ERP Software and Services Outlook for India."
Manufacturing companies in India face the challenge of improving their competitiveness. The ARC report says that companies are battling against declining prices and a squeeze on margins.
According to ARC Senior Analyst, Libi Baskaran, who is the study’s author, "Manufacturers in India are increasingly implementing ERP solutions to ensure that decision makers have the required information visibility across the value chain."
Majority of Indian manufacturers are small by global standards, requiring easy-to-use ERP solutions to meet their specific process requirements, including localization needs to address the continually evolving tax and statutory requirements. Small and medium enterprises across industry verticals and micro verticals, such as automotive, pharmaceuticals, and textiles, are leveraging ERP solutions to gain sustainable competitive advantages.