How Much Does It Really Cost to Build a Custom ERP for SMEs in India?
If you’re running a small or medium business in India and are tired of juggling between Excel sheets, disconnected software, or rigid off-the-shelf solutions — a custom ERP (Enterprise Resource Planning system) might be just what you need.
But one question always comes up: “How much does it cost to build a custom ERP?”
Well, there’s no one-size-fits-all answer — but in this blog, I’ll break down real cost ranges, what drives the pricing, and whether going custom makes sense for your business.
🧾 So… What’s the Ballpark Cost?
A custom ERP system for Indian SMEs usually falls between ₹5 lakh to ₹50 lakh — depending on how complex your needs are.
Here’s a quick look:
-
- Basic ERP (1–2 modules, limited users): ₹5–10 lakh
- Mid-Level ERP (5+ modules, 10–50 users): ₹15–30 lakh
- Advanced ERP (custom workflows, integrations, scalable): ₹35 lakh and up
🎯 What Actually Impacts ERP Pricing?
Let’s go beyond the surface and see what really affects the cost:
1. Modules & Features
Do you need just inventory and billing? Or HR, finance, CRM, project management, and everything in between?
More modules = more time = more money.
2. Technology Stack
If you go with open-source stacks like Laravel + MySQL + React, it’s budget-friendly. But enterprise tools like SAP or Oracle will raise your costs due to licensing and complexity.
3. User Interface & Experience (UI/UX)
A clean, simple dashboard? Cool. A fully customized, high-end UI with animations? That’s gonna add to the cost — and rightly so.
4. Third-Party Integrations
You may need to plug in payment gateways, WhatsApp APIs, accounting tools like Zoho Books, or even a GST portal. Each integration might cost ₹50K to ₹3 lakh depending on the vendor and documentation.
5. Testing & Deployment
Don’t ignore the testing and QA phase — you’d rather pay now for good testing than later for bad bugs. Hosting, devops setup, and deployment also come with their own price tags.
📊 Quick Cost Breakdown (Estimated)
|
Item |
Estimated Range |
|---|---|
|
UI/UX Design |
₹2–8 lakh |
|
Backend Development |
₹8–20 lakh |
|
Frontend + Admin Panel |
₹5–15 lakh |
|
Integrations (API, payment, etc.) |
₹2–10 lakh |
|
Testing & QA |
₹2–5 lakh |
|
DevOps, Hosting, Domain Setup |
₹2–4 lakh |
|
Total |
₹20–50 lakh (approx.) |
🤔 Off-the-Shelf ERP vs Custom ERP – What’s Better?
Here’s a no-fluff comparison:
|
Feature |
Custom ERP |
Off-the-Shelf ERP |
|---|---|---|
|
Cost |
One-time (₹5–50L) |
Ongoing (₹2k–₹10k/user/month) |
|
Flexibility |
Full customization |
Limited |
|
Scalability |
Easily scalable |
Can be restrictive |
|
Ownership |
You own it |
You rent it |
Tools like Zoho, Tally, or SAP Business One are great to start. But if you have unique processes or want control in the long run, custom ERP gives you a lot more room to grow.
💡 Real-World Tip
If your business is just starting out or has fewer than 10 employees, try an off-the-shelf tool for 6 months. Once you’ve figured out what works (and what doesn’t), that’s when custom ERP becomes worth it.
🔄 Common Questions (Answered Simply)
Q: Can I build an ERP under ₹10 lakh?
Yes — if you keep it lean with just core modules and a simple UI.
Q: How long will it take?
Usually 3–6 months for mid-size projects. Bigger systems take 6–12 months.
Q: Any hidden costs?
Sometimes yes — data migration, staff training, or post-launch support aren’t always included in the quote. Always ask for a detailed breakdown.
Q: What if I need changes later?
That’s where a good development partner helps — make sure they offer ongoing support.
🚀 Final Words
A custom ERP might sound like a big investment, but it’s exactly that — an investment. Not just software. It saves you time, fixes leaks in your workflow, and sets you up for serious scaling.
At Synapse Tech Solution, we’ve helped SMEs build custom ERP systems that are not only functional but flexible, user-friendly, and built to grow with them.
👉 Want a quick estimate or a free consult?
Reach out at www.synapsetechsolution.com — or just drop us a message. We’d love to talk.