Custom vs Off-the-Shelf ERP — Selection Guide for MSMEs
Tally, Zoho, SAP B1, or custom build? Total-cost comparison and the 5 questions that decide it.
1. Map Your Processes First
List your 10 most painful workflows before evaluating anything. Vendors demo strengths; your pain list reveals fit. If 8 of 10 map to standard modules, buy. If 5+ need customisation, price the customisation honestly — it usually exceeds a custom build.
Count users by role, not headcount. Shop-floor operators need simple vernacular UX that most enterprise ERPs fail at.
2. Total Cost Math
Off-the-shelf: licences × users × years + implementation + customisation + AMC. Custom: build + hosting + retainer. At 5 years with 20+ users, custom frequently wins — run your own numbers with our worksheet logic.
Factor exit cost: data export quality varies wildly. Demand a live export demo before signing anything.
3. Phased Rollout
Roll out one module (usually billing/inventory) first, stabilise for a month, then expand. Big-bang ERP go-lives are the leading cause of ERP horror stories.
Keep Tally running in parallel for one quarter as the financial source of truth while operations move to the new system.
Frequently asked questions
When is custom ERP clearly right?
Unique workflows (outwork tracking, grade-wise stock), vernacular field UX needs, or per-user licence math above ₹15L over 5 years.
How long does a custom ERP take?
Single-unit 3–4 months phased. Multi-unit with outwork 5–8 months. Billing module always first.