ERP skills shortage pushes customers to SaaS
October 22, 2008 Leave a comment
By siliconindia news bureau
Bangalore: An acute skills shortage in enterprise software circles that is hitting SMBs especially is forcing clients to insist upon not only the merit of the software provided by a vendor but also the availability of resources to help implement such softwares, according to recent research from AMR Research analyst Dana Stiffler.
Though the big enterprise software vendors like SAP and Oracle are successfully promoting software products to manage business processes of small and medium sized businesses, the supply of skilled people to manage these products has not kept up with demand so far, reports Computerworld.
“SAP and Oracle application skills, in particular, are in huge demand, with service providers reporting their ERP practices continue to experience double-digit growth and strong pricing premiums relative to other IT skills,” Stiffler writes in the recent report titled ‘U.S. ERP Skills Gap Leaves Titans Vulnerable.’ “They tell us the packaged applications business is limited only by their ability to find, train and place appropriate resources.”
The net effect of the skills shortage is pushing existing and potential customers to consider alternative software delivery models, Stiffler contends.
“I think what it really means long term is that people are really crying out for a different delivery model for enterprise software and business functionality,” she says. “And it is my belief that combinations of SaaS and business process outsourcing (BPO) will eventually begin to emerge and make that gap be slightly less noticeable.”
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