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      India Offers Robust Growth Opportunities to ERP Suppliers


      (I-Newswire) - Dedham, Massachusetts; August 2005: Manufacturing companies in India are investing in Enterprise Resource Planning ( ERP ) solutions in order to improve their manufacturing operations. ERP suppliers, both global and homegrown, will find India an important marketplace for their businesses.

      The Indian ERP market is expected to grow at a Compounded Annual Growth Rate ( CAGR ) of 25.2 percent over the next five years. The market was $83 million in 2004, and is forecasted to be over $250 million in 2009, according to a new ARC Advisory Group study, "ERP Software & Services Outlook for India" ( ).

      Manufacturing companies operating in India face the challenge of having to improve their competitiveness. With the country remaining a low cost economy, they are battling against declining prices and a squeeze on their margins. These challenges drive manufacturers to realize that business decisions should be based on real-time information, resulting from synchronized business and production processes.

      "Manufacturers in India are increasingly implementing ERP solutions to ensure that decision mak-ers have the required information visibility across the value chain", according to Senior Analyst Libi Baskaran ( [email protected] ), the study’s author.

      Competitive Pressures among Manufacturers Spur ERP Business

      The Indian economy is closely integrated with the global economy and is emerging as a low cost production center for a wide range of products pro-duced to meet the demand arising from both domestic and export markets. As a result of India’s sustained economic growth over the last few years, the country is emerging as a demand centric economy.

      Indian and global companies in the marketplace are subjected to intense competitive pres-sures. These increasingly competitive pressures drive Indian manufacturers to deliver high quality products at lower prices.

      Manufac-turers, challenged to meet these pressures, seek to optimize their sourcing, manufacturing, and distribution decisions. Indian manufacturers, as they gear up to become more productive and price competitive, have realized the value of ERP solutions.

      This realization is leading to the growth of the ERP business.
      SMB Sector Drives ERP Growth
      The majority of Indian manufacturing companies are small by global stan-dards, requiring easy-to-use ERP solutions to meet their specific process requirements, including localization needs to address the continually evolv-ing tax and statutory requirements.

      SMBs are spread across different industry verticals and micro verticals, such as automotive, pharmaceuticals, and textiles. They are leveraging ERP solutions to gain sustainable competitive advantages. Libi Baskaran adds, "Indian companies require ERP solutions that meet their unique needs."

      August 09, 2005


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