Why 1 in 5 Pakistani SMEs Struggle with ERP Software in Pakistan; How to Succeed

According to reports, Pakistan's ERP software market is expected to generate US$96.83 million in revenue in 2025 and increase at a compound annual growth rate (CAGR 2024-2029) of 15.76%, reaching a market volume of US$164.80 million by 2029.

With advancements in technology, rise in competition and awareness among business managers about the importance of implementing ERP software, an increasing number of  businesses are adopting these management software to ensure optimization and efficiency in business operations. 

If you are also considering shifting your business to ERP software, then there are some important things you should know about ERP software in Pakistan such as the challenges you might face in this transition, the solutions to these challenges and the red flags you should know before partnering up with an ERP provider in Pakistan. 

This article aims to cover all these vital aspects of shifting to ERP systems, to make sure your transition to ERP becomes as smooth and seamless as possible. So keep reading!

Challenges in Implementing ERP Software in Pakistan 

Despite a high adoption rate, many organizations in Pakistan are still reluctant to implement advanced ERP systems to their business because of these reasons:

Resistance to Change 

Employees in organizations oppose the transition to more efficient software systems for a variety of reasons, including fear of losing their employment to automated technology and, more importantly, because they are used to traditional systems and lack the necessary skills to handle new ones. The management's attempts to deploy the ERP system within the organization may be jeopardized by this resistance.

According to 19% of the chosen participants in a study that examined the difficulties in adopting cloud-based ERP in Pakistani SMEs, user resistance is the largest obstacle that companies must overcome.

Information Gaps

The adoption of an ERP system necessitates a thorough understanding of Pakistani technology and business environment, yet there appears to be a lack of information regarding the software's implementation and related standards. System management issues may arise from the scarcity of research on ERP implementation among SMEs.

High Costs With Risk of Failure

The above mentioned problems are major risk factors for businesses aiming to implement expensive ERP systems since they may hinder the intended outcome. This causes businesses to think twice before making a sizable financial investment in cutting-edge ERP systems since, should the project fail, resources may be wasted and the organization's entire operations may be negatively impacted.

In the same study, mentioned earlier, it was found that the lack of knowledge (14%) and security risks (14%) were the second main concerns or challenges for the companies before implementing ERP software in Pakistan.  

How to Address the Challenges of Adopting ERP Software

Here’s how you can manage the challenges you face  in your organization, while shifting to ERP software:

1. Choose the Right ERP System

Selecting an ERP system that fits your company's size, sector, and financial constraints is the first step. If your team isn't prepared for a complex system, don't implement it. Choose software that is user-friendly, adaptable, and can expand with your company.

2. Work with Reliable Service Providers

Join forces with a reputable and knowledgeable ERP service provider. Local partners can provide training, support, and market-specific adaptations because they frequently have a better understanding of your company's needs.

3. Train Your Employees

Getting your crew used to the new system is one of the most difficult tasks. Set up appropriate workshops, training sessions, and user manuals so that everyone can become proficient with the ERP software. 

4. Manage Change Carefully

Implement the new system gradually. Test a small number of modules first, then go to others. This minimizes errors and keeps your employees from being overworked.

5. Stay in Touch with Support Teams

Stay in touch with your maintenance and support staff on a regular basis. Prompt assistance and updates will prevent delays and maintain the smooth operation of your system.

Red Flags Not to Miss in ERP Service Provider

As it is evident, how smooth your transition to ERP software goes, depends on your selection of ERP service provider. So before you hire an ERP partner for your business, make sure to look for the following red signals in them:

Lack of Certification 

A reliable ERP consultant should have official certification or be recognized as a licensed ERP partner If a consultant cannot prove their credentials, they may lack the necessary expertise.

No Industry-Specific Experience

ERP systems vary based on industry needs. If a consultant has no experience in your sector (e.g., manufacturing, retail, healthcare), they may not fully understand your business processes.

Poor Communication and Support

A good ERP consultant should be responsive and clear in their communication. If they take too long to reply, provide vague answers, or fail to explain technical concepts, it’s a warning sign.

Lack of Transparency in Pricing

Overpricing of customization, training fee, or post-implementation support; some ERP consultants may hide these costs for customization which increases the total price of ERP system implementation. Always request a detailed breakdown of costs before you sign a contract.

No Clear Implementation Roadmap

A professional ERP consultant should provide a structured implementation plan with clear timelines, milestones, and deliverables. If they fail to present a roadmap, your project could face delays and mismanagement.

Wrap Up

ERP software in Pakistan is changing the way business operates in Pakistan. Although there are targeted challenges to implementing the technology, teaming up with certified local service providers guarantees customized solutions and an easy transition process to the new technology. Through appropriate training and planning, Pakistani organizations can fully capitalize on the benefits ERP software in Pakistan, thus augment productivity and sustaining competitive edge.