E Point Perfect – Interesting and beneficial content

Costs & Other Concerns Making ERP Systems A Difficult Choice For The Education Sector


Undoubtedly, the education sector has gone through major reformation.

The pandemic has changed how we view education – virtual classes outdo physical attendance. Schools nationwide are exploring ways and means to combat the challenges of ‘Online Learning’ to ensure every child gets access to education.

Amidst this chaos, EdTech has become quite the buzzword. The startups and businesses are all about innovation and launching the latest, most updated education technology products to ease the lives of the learners and educators, coupled with the vision to use technology to tweak the education system each minute.

The use of ERP systems brings one such transformation. Schools, colleges and various educational institutions are inclining toward Digital transformation, i.e., to manage the daily activities through these cloud-based solutions. The ERP software market is projected to reach around $117.09 billion by 2030. 

The Hindrance

While many might have already adapted to these ERP systems, there is still a struggle to decide whether these ERP systems are efficient. The hindering factors for the growth of the ERP systems are:

  • Cost: The high pricing of the ERP software is the biggest factor for the education sector. Believe it or not- ERP systems are expensive. The outcome of this system may be to provide a hassle-free process of daily activities. However, even the basic subscription to access this software would require heavy investment. Let alone the updated and premium versions with more advanced features. While companies have a lot of factors considered for the end pricing, at the end of the day, educational institutes would still hesitate to bet on these systems. They would prefer going to their brick-and-mortar ways on any given day. The big question still arises whether the EdTech companies are willing to consider the costs of these ERP systems for the educational institutions.
  • Lack of Proper Training: As aforementioned, the education sector in India relies on manual processes. Fortunately, the advent of electronic devices such as computers and smartphones was rapid due to modernization. The move to getting the entire workings of the institution online was unexpected due to the global pandemic. Implementing ERP software knowledge to the team members, divisions and departments were immediate. There was some difficulty at first. Getting used to a system will be time-consuming; there will be training sessions and consultations. The team members will need as much time to get to the crux of the system. With so much to learn and less time, the ERP system is deemed complex.
  • Over-Customization: There is no concept of ‘one size fits all’ in education technology. There are different needs for different institutions. These customizations can be costly and take a lot of time to adjust the programs according to their requirements. If all these modifications are not possible, the educational institutes deduce that the ERP system is something they can do without.
  • Shortage of IT Infrastructure: Some educational institutes lack the required IT infrastructure to manage the ERP system. Many schools in tier II and tier III cities still do not have proper access to the internet. This is a challenge for the schools and colleges that do not want to shift to the ERP system.

Not All is Bad

These challenges might not be permanent if we look on the brighter side. Businesses and startups in India offer their ERP services at nominal rates without complications. Again, there are ERP systems provided by some organizations that are easily accessible and don’t need any expert tech knowledge for the implementation.

The Way Forward

India is renowned as the country with one of the world’s largest networks of higher education institutions. With further developments in the education sector, the education technology sector is also fathomed to have exponential growth. Therefore, there is no doubt that the upcoming reforms in this sector will help curb these challenges. Who knows, there might also be a time when the educational institutes will depend heavily on this ERP system.

About the Author

Author: Mayank Singh

Mr. Mayank Singh is the Co-Founder and CEO of the Gurugram-based EdTech company, Campus 365. Campus 365 partners with schools and colleges across the country to provide students with a holistic learning experience that makes them future-ready.

Like what we do?

The Latest EdTech News To Your Inbox

Follow us: