The real cost of ERP implementation: from quote to delivery

By SysGuide Consultancy - Your independent Odoo specialist

Why ERP projects often turn out to be more expensive than expected

As an entrepreneur considering implementing an ERP system, you'll likely receive attractive quotes with promising figures. But what does an ERP implementation actually cost? And why do ongoing costs so often spiral out of control? In this blog post, we'll share the hard data and explain why it's so important to have realistic expectations.

The Hard Facts: Quote vs. Reality

Small SME (€10-50 million turnover, 15-100 employees)

With quotation:

Software licenses: €50,000 - €150,000

Implementation costs: €75,000 - €200,000

Training and change management: €15,000 - €40,000

Total at quote: €140,000 - €390,000

Upon actual delivery:

Average cost overrun: 30-50%

Actual total costs: €180,000 - €585,000

Median cost per user: €9,000

Large SMEs (€50-750 million turnover, 100-1000+ employees)

With quotation:

Software licenses: €200,000 - €750,000

Implementation costs: €400,000 - €1,500,000

Training and change management: €75,000 - €300,000

Total at quote: €675,000 - €2,550,000

Upon actual delivery:

Average cost overrun: 40-75%

Actual total costs: €945,000 - €4,460,000

Median project cost: €450,000 (all company sizes)

Why Do ERP Costs So Often Get Out of Control?

47% of All ERP Projects Go Over Budget

Recent studies show that nearly half of all ERP implementations exceed their original budget. The main reasons are:

1. Unexpected Technology Purchases (44% of Budget Overruns)

Additional integrations that were not foreseen

Additional modules that subsequently prove necessary

Cloud-related services and tools

Data migration complexity

2. Scope Creep (35% of cases)

"While we're at it..." mentality

New wishes that emerge during implementation

Underestimation of the complexity of existing processes

3. Underestimation of Resource Needs (38% of cases)

More time required from internal employees than planned

Hiring additional external consultants

Longer implementation time than expected

4. Change Management Deficiencies

User resistance costs extra time and money

Additional training and guidance required

Longer adoption period

The Hidden Costs That Are Often Forgotten

What Suppliers Often "Forget" to Mention:

For Small and Medium-sized Enterprises:

Data migration: €15,000 - €50,000

Adjustments to existing processes: €10,000 - €35,000

Additional integrations: €20,000 - €75,000

Post-implementation support: €25,000 - €60,000 (first year)

For Large SMEs:

Data migration: €50,000 - €200,000

Complex integrations: €100,000 - €500,000

Extensive testing and quality assurance: €75,000 - €250,000

Organizational change and training: €100,000 - €400,000

Why the Real Costs Often Remain Hidden

ERP vendor sales tactics:

Low entry price to secure contract Basic functionality is presented

"Nice-to-have" features will be sold later

Underestimation of complexity Standard implementation time is used

Unique business processes are underestimated

Hidden costs in small print Additional modules not included

Training costs calculated separately

Support and maintenance after go-live

2. 3.

The Impact of Timeline Overruns on Costs

47% of ERP Projects Run Over Time

An ERP project that takes longer than planned costs exponentially more money:

For Small and Medium-sized Enterprises:

Each month of delay: €8,000 - €25,000 in additional costs

Average delay: 3-6 months

Additional costs due to delay: €24,000 - €150,000

For Large SMEs:

Each month of delay: €25,000 - €100,000 in additional costs

Average delay: 4-8 months

Additional costs due to delay: €100,000 - €800,000

How Can You Avoid Budget Overruns?

1. Realistic Planning From the Start

Allow a 20-30% buffer for unforeseen costs

Think about your unique business processes

Calculate the Total Cost of Ownership over 5 years

2. Independent Guidance

Have an independent party assess the quotation

Use expertise from specialists such as SysGuide Consultancy

Get a second opinion on implementation strategy

3. Phased Implementation

Start with core functionality

Add modules gradually

Learn from every stage for better cost control

4. Strong Project Governance

Clear decision-making structures

Regular evaluation of scope and budget

Early warning systems

The Role of SysGuide Consultancy

Why Independent Guidance Is Crucial

At SysGuide Consultancy, we've experienced the painful reality of ERP cost overruns firsthand. That's why we deliberately chose not to be an implementation partner, but rather an independent consultant who:

Realistic Expectations Sets:

Check supplier quotes for completeness

Identifies hidden costs upfront

Helps in drawing up realistic budgets

Prevents Cost Overruns:

Guides the partner selection process

Monitors the scope during implementation

Ensures strong project governance

Protects Your Interests:

100% independent of suppliers

Focus on your business goals, not on software sales

Experience with 80% of projects going over budget

The Bitter Truth About ERP Costs

Did You Know...

80% of ERP integrations turn out to be more expensive than initially quoted?

Is an excess of 30% to 100% the norm rather than the exception?

Do companies on average “go through” 2-3 implementation partners before finding the right fit?

Choosing the wrong partner can quickly cost a company hundreds of thousands to millions of euros?

Conclusion: Invest in Independent Advice

ERP implementation is one of the largest IT investments your company will ever make. The numbers don't lie: almost half of all projects go over budget and deadline.

For small and medium-sized enterprises (SMEs), this often means a difference between €200,000 and €400,000 – enough to cause financial problems for a company.

For large SMEs, the additional costs can amount to millions of euros, with all the consequences for business operations.

The good news? These cost overruns are largely avoidable with proper preparation, independent advice, and realistic planning.

Your Next Step

Considering an ERP implementation? Don't just look at software, start by asking the right questions:

What are our real business goals?

Which processes really need to be improved?

What does our long-term IT strategy look like?

What hidden costs should we expect?

SysGuide Consultancy can help you answer these questions before you make costly mistakes.

Because as we always say: "If you think we are (too) expensive, then you really need us!"

Contact SysGuide Consultancy

Phone: +31 6 11839495

Email: info@sysguide-consultancy.nl

Specialization: Independent Odoo ERP advice and support

We do what others promise you – without the hidden costs.