Almost everyone involved in the procurement or implementation of mid-market ERP systems is saying that there is a profound skills shortage. The picture is the same world-wide as the mid-market recovers from its turn-of-the-century malaise and global vendors such as Microsoft and SAP stir up renewed levels of interest. It means that businesses contemplating an upgrade, a change of systems or simply a re-organisation have to think very carefully in advance about the skills that they will need and where they are going to get them from if they are to successfully bring home their projects.
The problem is especially acute when companies need in depth product knowledge but perhaps only in ‘fits and starts'. Donal Madden, Head of Channel at SAP (UK) says, that given the skills shortage, mid-market companies should consider how frequently they need the skills to help them decide how to resource a particular project phase or task. He told FSN, “If they are going to produce or amend reports in-house very frequently, then it probably makes sense to train someone internally to fulfil that role. On the other hand, if it's a specialised skill such as software configuration that is required much less often then this should probably come from the re-seller.” This is exactly the approach taken by Simon Oxenham, Head of Finance Services & Systems at the RNID , the national charity representing the 9 million deaf and hard of hearing people in the UK, who, for example, trained a reporting specialist in-house to meet the organisation's needs.
“The external recruitment market is a valuable source of skills when requirements are urgent and it would take too long to bring someone up to speed in-house. We needed an experienced individual to help us build a reporting system in-house when we unexpectedly lost some finance team members. We were able to find the person we needed through SystemsAccountants a specialist provider of resources in this area,” says Oxenham.
Price can also be a significant influence on the choice of resourcing model. When the RNID, , implemented Microsoft Great Plains, the daily rates quoted for consultants from a large re-seller were £850 to £950 per day. Oxenham found that surprisingly good sub-contractors were available in the open market but at considerably less cost. Furthermore, with careful oversight of ‘skills transfer', RNID has managed to bring certain skills in-house. “Microsoft Reporting Services is a relatively new product and so it made sense to use external resources initially to get us underway. But now that we are familiar with the system we're bringing the resourcing in-house,” adds Oxenham.
Paul White, head of the Microsoft Dynamics business in the UK urges businesses to examine their core competencies before deciding on a resourcing model. “Everyone is short of resources, so end user organisations have to think carefully about the skills they really need. If the organisation is in a highly dynamic industry where an ERP system is going to give a significant competitive edge then it is important that the business retains the skills to adapt the software to changing circumstances. If those skills are not available in-house then it makes sense to tap the open market or the dealer network. On the other hand, if having the skills in-house isn't going to make a great difference to delivering products and services then why retain them?”
If extra resources are needed then it is important that companies plan ahead to make sure that they secure what that they need. “There are a large number of different ERP packages and only a fairly limited number of new projects each year, which means that there is not a huge number of people available with deep product knowledge and experience,” says James Bradshaw, managing director of SystemsAccountants the leading specialist in the field. As a result, many skilled individuals are tempted to work as sub-contractors for better pay and conditions, through agencies such as SystemsAccountants.
Sue Parkinson, has been working as a subcontractor for a number of years specialising in mid-market systems implementation with packages such as Great Plains and Agresso in both the private and public sector. She says that the sub-contractor market is becoming much more professional and the life-style is attracting high calibre individuals who are motivated by working on challenging projects and then moving on to the next one.
Parkinson, who has worked as a project manger for a software house as well as an independent consultant and a company employee has seen resourcing issues from all sides. She stresses the need to keep project management in-house.
“The problem with software dealers and re-sellers is that they are sales oriented and motivated to keep their resources fully utilised. It sometimes means that consultants are re-positioned in areas in which they have little background and experience and it very difficult for a company to know exactly what they are getting. On the other hand contractors are purely motivated by their desire to succeed and it is easy to check on their background and track record of doing similar work.”
“The company needs to have someone independent on its side. For example, many ERP implementations throw up opportunities to revise business processes but in the main, a reseller will be interested in configuring their software and walking away, rather than supplying industry expertise.”
“Ideally business expertise and the challenge to existing practice should come from within the organisation. The dilemma is that the best people to have on the project are the very individuals that the business wants to keep in the line. On the other hand, if you can afford to release them then they probably aren't the people you want working on the project,” she says.
Guy Miller, Operations Director and head of IT at Mace Limited, is facing the dual challenges of a rapidly changing and growing business. Mace is one of the world's largest and most diverse management and construction companies, with a reputation for finding solutions to complex construction problems. Miller finds that a hybrid approach of mixing internal resources with carefully selected sub-contractors and permanent recruitment gives him the flexibility he needs to meet constantly shifting business demands whilst managing costs appropriately.
Miller used SystemsAccountants to find specialists in CODA-Dream, Mace's choice of financial system. “Trying to develop internal resource through training courses at the same time as implementing a system is tough. You have to buy in resources but the mainstream consultancies and software houses are strapped for resource themselves and you might need to book three or four months ahead. So we tap into contractors to fulfil short term needs and support a step change in progress. But the recruitment consultant really needs to understand the market.”
“We have found that specialists such as SystemsAccountants can produce a list of good candidates with deep product knowledge. They know the products very well and can advise on roles and salary levels.”
In the current climate, it is very clear that companies cannot take resources for granted. Diligent use of sub-contractors and permanent staff drawn from the open market has to be considered alongside traditional sources such as the software supplier. Those that have tapped the open market are generally pleasantly surprised by the quality and commitment that sub contractors can bring to a project as well as the flexibility that this arrangement can bring. In a highly competitive environment for talent, companies need to be open-minded about resourcing models. The skills are available if you know where to look!
