ERP: Major ERP vendor are targeting towards small and medium scale businesses to sell their solution,

particularly after saturated growth in large businesses. In fact their strategies include to develop cost effective, easy to implement and easy to upgrade system for small and medium businesses. However, the reason for increasing demand from SMEs is highly competitive business environment, and the businesses want to gain competitive edge over their rivals.

Although, small and medium businesses still facing few challenges to implement these systems such as high costs of system, consultancy issues and future upgrade problems. In contrast, ERP vendors are constantly focusing on coming up with a solution which overcomes these issues makes the systems specially designed for small and medium businesses.

Hosted erp.cloudper userper month(4000)..train.zensar(autozenics) Exel sheet maintaincostprintout Inventory management Financecredit limit..order placewarning.. Scheduling of product. General ledger Overall productiy Analysis Scrape management Sub contracting. Tool amortisation Tax calculation

Application Service Providers ASP can be defined as A company that offers individuals or enterprises access over the Internet to applications and related services that would otherwise have to be located in their own personal or enterprise computers

(Telus, 2005) A large number of ASP providers are focusing on small to medium enterprises (SMEs) to manage their enterprise resource planning systems with implemented modules such as e-commerce, supply chain and distribution. The significant advantages of ASP includes

1.Cost effective method of implementing ERP solutions as investment is not required in buying software, hardware infrastructure and future up gradation. 2.It provides enhanced security and flexibility 3.Most of the small and medium scale businesses have very less number of IT staff, and ASP requires less necessity for IT knowledge in business. 4.No issues such as maintenance of system and in house training for employees which usually prove very expensive.(iStart, 2004)

Outsource ERP systems Outsourcing is the latest trend for small and medium scale enterprises and the biggest benefit of outsourcing ERP is that doing so gives the business ability to provide the attention towards company's functions rather than solving the issues with ERP software. Basically, an outsourcer charge monthly fees which depend upon configuration of system, service and vendor reputation to host ERP server. The advantage for outsource ERP systems for SMEs are v v v No issues related to hire talented IT people. Complexity in execution of ERP system. No maintenance issues( Barbara DePompa, 2003)

Most SMEs do not have an in-house IT team. Due to this they have to rely on external agencies to help them and this adds to the implementation costs. a lot of software applications have been created to help the business managers to implement ERP software in different business activities as: order tracking, inventory control, human and finance resources and customer service. Implementing ERP (Enterprise Resource Planning) is a difficult and expensive process but due to its great efficiency its costs can be liquidated in short time.

As it is well known, small businesses are, most of the time, family enterprises and only a few use ERP software. Because the implementation of an ERP solution is expensive and time consuming most of them preferred to use an accounting system instead. But, due to the fact that the business environment is changing continuously and the small and medium business tend to develop quickly, ERP solutions have proved to be a good solution for these kinds of businesses Compiere is an Open Source enterprise resource planning software created especially for small and medium companies. It is able to manage different activities in domains like accounting, Supply Chain Management, and Customer Management.

Training contract.upgrade.departwise training..module trainngmanagerial rightsthouraghly trained1 department2 emp.can work otherwise..n train. Training and testing of the system should be done properly by the ERP Consultants, that is, the vendor is provided as part of the implementation procedure to only a 30% group of people from the clients side known as the Core Team. This core team in turn trains a rest of people who are actually responsible for day-to-day transactions called the End Users.