NetSuite ERP: Overview, Pricing Model & How-to-Buy Guide

IV. Professional Services Costs

The cost of your NetSuite implementation will be based on the number of modules you need to implement, the level of customization required, and the amount of data that needs to be migrated or processed.

A. Discovery: Requirement Analysis and Advisory Cost (Optional)

When you are implementing NetSuite, you may also need to consider the cost of discovery and analysis services. This is a cost-effective way to get started with NetSuite and determine if it is the right solution for your business. With discovery and analysis services, you can:

• • Get a detailed overview of how NetSuite can be configured to meet your specific business needs
  • Determine the level of customization and integration required
  • Estimate the effort required for data migration
  • Assess the training needs of your team
  • Develop a roadmap for implementation

The cost of discovery and analysis services will vary depending on the size and complexity of your business.

It takes a week or two to conduct a thorough evaluation of your business requirements and specifications to determine if NetSuite is the best fit solution for supporting and addressing the gaps in your organization.

B. Professional Services Cost of Implementation

There are two approaches to NetSuite implementation:

• The traditional Full-fledged NetSuite Implementation through a service provider; and
• The Guided Implementation, where your team performs the implementation while a NetSuite expert provides the installation roadmap.

The traditional full-fledged Implementation is best suited for businesses with more complicated requirements. This lasts around four and a half months, with the NetSuite expert in charge of all necessary activities from system setup to user training and testing, as well as past data migration.

A guided implementation is for companies with simpler business requirements and a limited budget. This is held through a fixed engagement for 3 months with a fixed 160 hours of guidance/ consultation.

C. Professional Services Cost of Customization including Data Migration

In most cases, clients don’t get everything they desire out of the box. This is because companies have unique customer requirements and business processes that’s why it is better to have NetSuite customized. Customization costs depend on the complexity of the required functionality and labor hours for coding, testing, and deployment. Rates can go up to $200 per hour for both midsized practice consultants and established NetSuite services providers.

The cost of data migration varies depending on the complexity, volume, and quality of data. The types of data being migrated, such as financials, customer relationships, inventory, and order histories can vary greatly in complexity. Complex data structures require more work to migrate accurately. On the other hand, the amount of data to be transferred directly influences the duration and intensity of the migration process. Larger volumes of data take more time and resources to migrate. Moreover, the condition of the existing data affects migration costs. Clean, well-maintained data is faster and easier to transfer compared to data that requires significant cleansing or deduplication.

This cost is usually listed under the customization and integration costing tables. The professional services fee for data migration ranges from $2,500 – $10,000 for small to midsize businesses, up to $50,000 or more for larger enterprises.

D. Professional Services Cost of Integration

Some businesses want NetSuite to connect/communicate with other systems operated by its clients and suppliers after it’s installed. NetSuite will have to be linked with its 3PL/Third Party Logistics partner for the fulfillment and delivery of various sales orders, as an example. The cost of integration depends on the complexity of the required functionality and labor hours required for the integration coding, testing, and deployment. The rates can go up to $200 for both midsized practice consultants and bigger/ global tech companies.

E. Internal Staff Hours Cost

Another factor is the cost of your internal resources (accounting and finance team) involvement throughout the different phases of the project from the start until completion.

F. Post Go-Live Support Cost

As your company adapts to and gets used to using NetSuite for your finance, accounting, and other operational activities, your team will need support in addressing errors or sudden interruptions. However, the support requirements will then be relatively low compared with implementation. More hours are expected to be spent for support for the first 6-12 months after implementation or post-go-live.

Check our NetSuite: Total Cost of Ownership blog for a more detailed discussion about NetSuite’s TCO or Total Cost of Ownership.

G. Training Cost

This will ensure that your staff are equipped with the knowledge and skills needed to use NetSuite effectively. Excelym’s strategy is to focus on improving the expertise of your frontline or key team members. As their expertise grows, they can assist in configuring and designing solutions, train fellow users, and champion NetSuite within your company. We view training as a mutual learning experience. Through our collaboration, we gain insights from your business operations and processes, enabling us to customize a set of functions or features that align perfectly with your requirements.