ERP Software

ERP CRM Software and Outsourcing

ERP CRM software is used in all businesses today.  Outsourcing has also become a primary means by which businesses meet their technology needs. It is the philosophy of many businesses to concentrate on what they do rather than how it’s done. Outsourcing is a logical extension to this mindset.  

When an organization outsources its information technology department and administration, communication and data transfer is an issue of the greatest importance.   The model becomes one in which the core data of a company’s operations and finances are administered by a third party.  The flow of information is the essence of running the company and the ability to interface core systems within an organization with those of the administrative entity is essential.

ERP CRM software is one the foundation upon which a business is built. Outsourcer systems talk to and even house the data necessary to ERP CRM software functionality.  Ownership of the data itself legally remains with the client company but the manner in which it is exchanged is dependent upon the outsourcer’s structure.

In a leveraged system, a system design in common use ERP CRM software and data, for different customers are sometimes held on the same servers.  When properly administered, this poses little problems with functionality, however, there are certain concerns bordering on the ethical which come in to play.  Questions as to the accessibility of a customer’s data can arise and the integrity of the data and security can also be threatened.  It is not unheard of for the data of different clients to “mix”.

An outsourcer administers the ERP CRM software, on the customer’s behalf.  If the outsourcer is dedicated to a single client this does not pose much of a problem.  They need only keep their own data apart from that of the customer. However, in many cases, especially in the case of large outsourcing concerns, they have numerous clients, sharing server space.  This is where problems can arise when it comes to outsourcing.  

While this outsource systems are designed to interface with the client’s business system and data, posting of transactions can be subject to limitations.  The free flow of information is often not possible due to the leveraged (shared) system structure. The client must wait for its turn for a batch delivery of data and this can disrupt the flow of business, interfering with the proper function of ERP CRM software. Careful evaluation of a potential outsourcer’s system structure is strongly recommended.

Written by :

Amy Cruz