Build a strong Enterprise Resource Planning (ERP) team offshore by following these best practices:

  • Choose offshoring for long-term development and outsourcing for short-term projects
  • Partner with a high-quality offshore development company to recruit top talent (ERP talent hotspots include India, Ukraine, and Poland)
  • Define your scope, unify your stakeholders, set up your governance structure, and properly onboard and engage your offshore team for long-term ERP success

You’ve heard it time and time again: digitise, digitise, digitise.

While AI has taken over digitisation discussions in recent years, CTOs shouldn’t forget that they have another powerful set of automation tools at their disposal: Enterprise Resource Planning systems, or ERPs.

ERPs like SAP, Workday, and Microsoft Dynamics 365, when fully customised to the needs of your organisation, are key modernisation drivers that can transform operational efficiency and productivity, and improve the reliability of your reporting. 

Whether you’re considering a full offshore ERP implementation or looking to expand your current capabilities, building an offshore ERP development team can help you find certified specialists and subject matter experts at the right price.

In this article, we will walk through top strategies for building an offshore ERP, plus common challenges and how to solve them, to make sure you’re scaling in a way that supports strong ROI.

What is an offshore team in ERP development?

An offshore ERP team refers to a group of software professionals who build, implement, and maintain ERP solutions for your organisation while located in another country.

While there are many different ways to hire offshore developers, generally, your ERP team will be recruited by a third-party offshoring services provider who collaborates with you to match profiles to the skill sets you need.

While an ERP can benefit practically every part of your organisation, from HR and finance to sales and marketing, these systems come with one key caveat: ERP modules can’t just be taken straight off the shelf and implemented.

Whether we’re talking about Oracle or Odoo, each ERP needs to be fully customised by experienced consultants who can tailor the base system to fit your specific processes, reporting needs, and access authorisations.

top erp systems

Getting this customisation right requires a comprehensive knowledge of your company, its governance structures, and the users who will be interacting with the ERP, which is why picking the correct offshore model for your needs is crucial when moving this development abroad.

Comparing offshore models for ERP development

Let’s focus on two of the main models that companies use to build offshore teams: offshoring and outsourcing.

While these terms are often used interchangeably, they actually represent two different ways to hire offshore ERP developers.

Whereas offshoring with a dedicated team involves hiring in-house professionals that simply sit in a remote office, outsourcing means contracting temporary profiles who are not incorporated into your organisation. Instead, these external developers work directly for the outsourcing company that is connecting you to talent, and are fully managed by that company.Essentially, outsourced teams are assigned to work on your project, complete it, and move on, whereas offshore teams are integrated into your organisation and stay with you long term.

While both models have benefits, there are specific use cases where one works better than the other. Let’s take a look at them.

Offshoring is the better choice when:Outsourcing is the better choice for:
Long‑term ERP ownership is criticalYou want knowledge to stay inside your business, not walk away with a vendor.Short‑term or one‑off projects
i.e., a quick SAP upgrade, patching, or compliance update.
You need