Demand for ERP solutions is growing in BRIC economies as the economies themselves grow and become global superpowers. In 2016, China was the world’s second largest economy, India was 7th, Brazil 9th and Russia 14th, showing that the group is making progress and growing nearer to matching the prediction of Goldman Sachs, who stated that by 2050 their combined economies would eclipse the combined economies of the current richest economies in the world.
However, with the global ERP marketplace changing and developing, are the BRIC economies keeping up? Or are they overtaking the ERP solutions which are deployed in Western economies? In some BRIC economies, there is even more choice. As well as familiar ERP providers from the US and Europe, these economies are producing local software developers, who are often preferred by local companies. In Russia for example, there are software developers who have built a strong presence there and also built up an extensive network of partnerships within the Commonwealth of Independent States; while in Brazil local companies are expanding due to foreign ERP companies experiencing complicated tax problems when entering the Brazilian market which makes it difficult for any company to simply go there and be a success.
There were initial problems with implementation of ERP systems in emerging markets such as the BRIC economies. As these countries were experiencing a large amount of joint ventures, single instance ERP strategies were not particularly useful or effective for improving accuracy with forecasts or closing the books. This however led to large manufacturers requiring an ERP solution which could be deployed effectively in these rapidly growing markets. Problems with these predominantly arose from the cost, as companies were unwilling to implement and support corporate ERP solutions which overwhelmed the cost structures of operations which aimed to be low-cost. However, as more developers and companies in BRIC companies became up to speed with the global ERP marketplace and could therefore deliver better quality services at more affordable prices, even some global companies who have expanded into countries like Brazil, Russia, India and China have chosen to make use of local systems and expertise.
In order to be successful in international markets, companies in BRIC economies will require more enterprise software as they are still newly-industrialised. Workforces are also likely to need more training and education as more and more systems become updated to feature trends such as cloud, mobile social and big data analytics. However, with a variety of home-grown software developers, success in international markets may come through the use of their own ERP systems in Western companies.