The world is getting smaller, bringing in new opportunities to hire contractors overseas for your ERP implementation needs. However, certain pitfalls and risks come with going offshore - risks that aren’t quite as present with the on-shore option. In this article, we pit on-shore and off-shore options head-to-head.
Offshore ERP Software Consulting Pitfalls
OSI is a global organization with offices throughout the US, as well as affiliated companies internationally. We understand and appreciate how the world has become a lot smaller and more interconnected.
At first glance, going offshore may seem appealing, with lower hourly rates, a broad talent pool, and around-the-clock work schedules. However, when it comes to ERP implementations, the stakes are high. These projects touch nearly every part of your business, from finance and supply chain to customer experience. The wrong approach can lead to costly delays, compliance issues, or even complete project failure.
However, offshore contractor ERP implementations have a difficult track record, and OSI is often asked to help mitigate project problems and address risks. Over the years, we have seen a few common problems, such as:
1. Communication challenges: Offshore staff may not be located in the same time zone or speak the same language as the rest of the implementation team, which can make communication and collaboration more difficult.
2. Cultural Differences: Offshore staff may have different cultural backgrounds and work styles, which can lead to misunderstandings and conflicts.
3. Lack of Local Knowledge: Offshore staff may not be familiar with local laws, regulations, and business practices, which can lead to problems with compliance and operational efficiency.
4. Time Zone Differences: Working with offshore staff in different time zones can lead to delays and difficulties in coordinating meetings and project tasks.
5. Security Concerns: There may be concerns about the security of sensitive data being transmitted to offshore staff, particularly if data protection laws and regulations are different in the country where the staff are located. This risk can arise if offshore staff are given access to sensitive data or systems without appropriate security measures.
To mitigate this risk, it is important to implement strong security controls, such as access controls, encryption, and regular security assessments, to protect against unauthorized access or data breaches. It is also advisable to have clear policies in place regarding the handling and transmission of sensitive data, and to provide training to offshore staff on how to handle and protect data.
In addition, it is important to make sure that offshore staff are subject to the same security standards and protocols as local staff, and to have a clear process in place for handling security incidents and breaches. By following these best practices, you can help to ensure the security of your ERP system and protect your business’s sensitive data and operations.
Why use Onshore?
Onshore companies are generally considered to be better for ERP implementations for a number of reasons.
Perhaps the biggest reason is that they are typically more familiar with local business practices, regulations, and cultural norms, which can make it easier for them to understand the specific needs and requirements of a company. This can be particularly important when it comes to ERP implementations, which often involve complex and highly customized systems that need to be tailored to the unique needs and processes of a particular organization. Here are a few main reasons why onshore implementation firms provide a higher level of value that far outweighs the costs of the project.
Local Business Knowledge
Onshore consultants understand the regulatory environment, cultural norms, and unique business practices in your market. That context is invaluable when tailoring an ERP solution to your organization’s needs.
Easier Collaboration
Shared language, similar work culture, and proximity make communication smoother. Problems can be resolved quickly, reducing downtime and costly delays.
Alignment on Business Goals
Offshore teams often approach ERP projects as software development exercises, customizing code to match particular requests. Onshore partners (like OSI) tend to frame ERP as a business transformation initiative, focusing on solving process inefficiencies rather than over-customizing software. This leads to cleaner implementations, less technical debt, and fewer long-term risks.
Lower Hidden Costs
Offshore hourly rates may look attractive, but rework, misaligned requirements, and scope creep can drive up the total cost of ownership. Onshore projects are often more predictable in both budget and timeline, because they’re structured around solving business problems, not just coding a technology platform.
Over-customization is a large issue with offshore companies, and that can often add unnecessary complexity to your operations instead of streamlining processes for efficiency. This trickles down to meticulous, time-consuming training for your team, and doesn't directly solve the core challenges you aim to address. As a result, the investment isn't worth it for the long term, which might result in additional work down the line to repair certain areas of your system that need better optimizations in place.
Better Change Management and Training
ERP adoption is just as much about people as it is about technology. Onshore consultants are more equipped to handle local training needs, user adoption strategies, and change management initiatives. That cultural and linguistic alignment helps employees embrace the system faster.
Long-Term Partner Relationship
One of the biggest advantages of working with an onshore technology consulting firm is the ability to develop an ongoing relationship that extends well beyond the initial implementation. ERP systems aren’t static — they evolve alongside your business. As your operations grow, processes shift, or new regulations come into play, your system needs to adapt.
At OSI, we don’t view go-live as the finish line. Instead, it’s the beginning of a long-term partnership. Our team continues to provide resources, support, and proactive guidance after launch. From troubleshooting and system optimizations to new feature rollouts, we make sure your ERP solution continues to scale with your business and deliver measurable value year after year.
Key Takeaways on Offshore vs. Onshore ERP Implementations
Choosing the right partner for your ERP implementation can make the difference between a smooth rollout and a costly recovery effort. While offshore options may seem attractive at first, onshore partners often provide more reliable outcomes, lower hidden costs, and better alignment with your business goals.
At OSI, we bring global expertise with a strong onshore presence, helping organizations across industries implement ERP systems that are tailored to their unique processes. Our focus is on designing solutions that drive efficiency rather than unnecessary customizations that slow down operations.
Instead of starting with challenges that require expensive fixes later, it is smarter to invest in a partner who delivers a strong foundation from the beginning. Our goal is to get it right the first time with only minimal adjustments in the future to support your business as it evolves.
