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ERP buyers - finance, operations, IT · 9 min read

How to evaluate an ERP vendor and proposal

ERP implementations are the single most common cause of budget overruns, and the pattern is predictable: the costs that blow the budget are the ones excluded from the fixed-fee proposal. This guide covers what to interrogate before you sign an ERP deal - whether it's SAP, Oracle, Microsoft Dynamics, NetSuite, or Workday.

Published 14 June 2026

Download the guide(PDF)

#Data migration is the overrun engine

Vendors routinely exclude data cleansing, legacy extraction tooling, and cutover validation from fixed-fee proposals. Demand a data-migration workplan with defined record counts, transformation rules, and UAT criteria before contracting - and a rollback plan for cutover.

#Cutover and hypercare

A compressed cutover window (under 48 hours) is a critical risk signal; most ERP go-lives need 72-96 hours of hypercare. Get the hypercare period, staffing level, and a named senior lead into the contract.

#Customisation is a future liability

Every customisation to a standard ERP is an upgrade liability and a change-order vector. Require a customisation register before contracting; any customisation costing more than ~15% of licence value should require executive sign-off.

#Licence true-ups

ERP licence metrics are complex - named vs concurrent users, module activation, user-count true-ups. These are routine sources of unexpected cost post-go-live. Cap renewal increases and clarify the metering in writing.

#Named staffing

The consultants presented in the sales process are almost never the ones assigned. Contractually require named key personnel with CV sign-off and penalties for unilateral substitution.

Frequently asked

Data migration. Vendors routinely exclude data cleansing, legacy extraction tooling, and cutover validation from fixed-fee proposals, and these are the costs that most often blow the budget. Demand a migration workplan with record counts, transformation rules, UAT criteria, and a rollback plan before signing.

Because the budget-breaking work - data migration, integrations, customisation, extended hypercare, and change management - is commonly excluded from the fixed-fee proposal and billed later as change orders. Surfacing and pricing those exclusions before signing is the defence.

Related guides

How to evaluate a software vendor before you signHow to avoid scope creep and change orders

On this page

  • Data migration is the overrun engine
  • Cutover and hypercare
  • Customisation is a future liability
  • Licence true-ups
  • Named staffing
  • Frequently asked
PreviousHow to evaluate an AI or LLM vendorNextHow to avoid scope creep and change orders

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