Dutch software giant Baan is set to join its rivals and launch an outsourcing service to deliver end-to-end enterprise resource planning (ERP) solutions.
Baan this week announced the formation of Baan Midmarket Outsourcing, a company which will provide ERP outsourcing to middle-market customers. The aim is to offer implementation, operations, technical support, and on-going maintenance for a fixed monthly fee.
Baan is the last of the big ERP suppliers to announce such a service, with SAP, PeopleSoft, JD Edwards, and Oracle having already outlined their outsourcing strategies.
Industry watchers argue such a strategy is not an added revenue opportunity but essential for ERP suppliers if they wish to capture middle-market customers who don't have the resources to implement ERP packages, which are notoriously unwieldy and difficult to use.
The ERP market is experiencing rapid growth as these smaller customers look at implementing solutions. The Meta Group estimates the ERP-outsourcing market will rise from $1 billion this year to between $6 billion and $8 billion in the next three to four years.
Executives at Baan said the outsourcing services will be offered to customers through a network of resellers, channel partners, and outsource solution providers.
Last week, Baan released BaanERP, which is aimed at providing users with an easier way to select ERP applications. It features updated versions of several Baan applications, including inventory management and data warehousing, along with invoicing and manufacturing scheduling.
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