Enterprise resource planning (ERP) systems are a crucial component of business operations — used to close the books, ship orders, pay employees, enforce compliance and much more. Yet for many CIOs, CTOs and boards, ERP has become both indispensable and unsustainable.
Rising licensing fees, infrastructure overhead and internal support costs are only the beginning. Multi-year upgrades, which are often required despite a lack of clear ROI, drain budgets and talent, leaving little room for innovation. Scarce skills make “keeping the lights on” an uphill battle, while vendor-mandated roadmaps — not individual business strategy— dictate the pace and cost of change.
The paradox is clear: Though ERP is mission-critical, the traditional model can deplete resources and stifle agility. For organizations seeking growth, resilience and innovation, sticking with the status quo is no longer viable. A composable ERP architecture, on the other hand, offers a better path forward, enabling organizations to innovate rapidly while maintaining a stable, highly governed core.
It’s time to rethink the approach to ERP — not by ripping and replacing, but by optimizing and strategically outsourcing ERP operations as needed.
The ERP challenge: Stability at the expense of agility
At its best, ERP excels in providing stability and governance. But for many organizations, that stability comes at a steep price — hindering innovation, consuming resources and increasing operational risk.
How?
- Vendor lock-in: Proprietary architectures and end-of-support timelines bind organizations to vendor-driven roadmaps. Forced upgrades, which can cost millions and typically take 12–18 months to complete, deliver little strategic value but consume valuable resources.
- Rising costs: Annual vendor maintenance fees typically run 20–25% of license value. Add in compliance updates, integrations and customizations, and ERP operating expenses balloon, making cost optimization a top priority for IT and business leaders.
- Skill gaps: ERP talent is increasingly scarce due to legacy system experts retiring without sharing their knowledge with the next generation. Further, teams are stretched thin, focused on day-to-day maintenance and troubleshooting instead of driving innovation and strategic initiatives.
- Complexity and risk: Years of customizations, legacy processes and fragmented support models add layers of complexity, increasing operational risk and slowing modernization efforts.
- Misaligned priorities: ERP vendors may push migrations to their cloud platforms, often on timelines that conflict with business needs, regulatory obligations or capital availability.
As a result of these roadblocks, innovation slows, budgets swell and CIOs are locked into a cycle of maintaining the past rather than building the future.
The strategic reframe: Stabilize the core, innovate at the Edge
Modern enterprises are at a turning point in how they leverage ERP systems. Rather than viewing ERP as a barrier to change, forward-thinking organizations are embracing a new paradigm — one that treats ERP as a reliable, foundational source of truth while reimagining the periphery of the enterprise environment.
This approach aligns with the principles of a composable ERP architecture and strategy — where the core remains stable and governed while new technologies and capabilities are introduced around the edges, enabling rapid innovation without destabilizing the foundation.
In this model, ERP provides the operational backbone — handling transactions, compliance and core processes — while customer experiences, advanced analytics and AI-powered services evolve at market speed, interoperating with ERP but not limited by its constraints.
Looking ahead, the future of ERP will be shaped by the integration of agentic AI — intelligent digital agents capable of automating workflows, orchestrating data flows and proactively identifying opportunities for improvement. These AI-driven capabilities can connect to the stable ERP core, drawing on its trusted data while enabling adaptive solutions at the edges, ultimately transforming the combined enterprise into a dynamic system of action.
Strategic ERP outsourcing: Raising standards, extending value
Strategic ERP outsourcing is no longer about offloading tickets — it’s about transforming ERP operations into a source of competitive advantage. The modern model is defined by:
- Cost optimization & control: Replace costly vendor maintenance with independent, expert-led software maintenance and support services. This eliminates forced upgrades, ensures ongoing support for customizations and provides both financial flexibility and operational oversight — freeing up budget for innovation.
- Measurable service quality: Named senior engineers and hard SLAs (such as 10-minute P1 response times) deliver greater resilience and build stakeholder confidence through transparent accountability and proactive management.
- Future-proofing without disruption: Current ERP releases can be fully supported for 15+ years, maximizing asset life and minimizing the risks and costs associated with major replatforming projects.
- Compliance without migrations: Targeted updates for tax, legal and regulatory requirements maintain auditability and compliance — without the instability and expense of frequent vendor-mandated upgrades.
- Integrated, one-stop shop: Comprehensive application management, advanced security, interoperability and real-time insights can be delivered proactively and flexibly across your entire environment — all within your existing IT budget.
This is not traditional outsourcing as a “ticket factory.” It’s a modern, expert-led partnership that enhances ERP’s strengths, reduces complexity and reallocates critical talent to high-impact work that drives true business differentiation.
What strategic ERP outsourcing looks like
Leading providers for outsourced ERP operations go far beyond traditional models. They combine expert-led managed services, proactive security and integrated solutions into a single, accountable partnership.
When assessing potential partners, IT and business leaders should look for candidates that offer the following:
- 24/7/365 ERP operations: Seasoned experts in mature systems deliver break/fix, performance tuning and customization support with predictable, SLA-backed outcomes
- Integrated application management: Management encompasses all enterprise applications, databases and infrastructure — regardless of vendor or technology — streamlining operations and eliminating technical debt.
- Interoperability services: Options to maintain browser, OS and email compatibility are available without costly vendor upgrades. Proven solutions decouple your ERP from technology stack changes, ensuring seamless operations and future-proofing the enterprise environment.
- Proactive security: Advanced, tailored security solutions block emerging threats and reduce risk — without destabilizing validated environments or requiring changes to vendor code.
- Roadmap & license advisory: Expert guidance aligns ERP decisions with business objectives, not vendor mandates — empowering modernization on the organization’s terms.
- Application managed services (AMS): System performance and operational efficiency are prioritized. The focus is on root-cause resolution and continuous improvement.
- Real-time monitoring & analytics: Actionable insights and real-time system health monitoring help detect and resolve issues before they impact operations.
Such a provider can become a single accountable partner for business continuity and ERP optimization, freeing internal teams to focus on revenue, customer experience and innovation around the edges.
Addressing Common Objections
- “Won’t we fall behind the vendor roadmap?” – No. The right outsourcing model stabilizes your ERP core, enabling you to selectively adopt only those vendor features that deliver measurable business value.
- “Is security covered?” – Yes. Modern providers deliver proactive, tailored security solutions that go beyond traditional patching.
- “What about integrations and interoperability?” – Integrated interoperability solutions keep your surrounding technologies in sync without costly vendor upgrades.
- “Is this just about cost?” – Cost savings are real and substantial, often 30–50% of ERP run spend. But the greater impact is capacity creation for innovation.
Strategic benefits that boards will notice
A strategic approach to ERP outsourcing can deliver measurable, board-level benefits that extend well beyond cost savings, including:
- Cost optimization: With the right partner, organizations can reduce ERP operational spend by 30–50%, unlocking significant capital that can be redirected to strategic initiatives. These savings fuel growth, digital transformation and innovation, rather than being consumed by routine maintenance and forced upgrades.
- Innovation velocity: Freed from disruptive upgrade cycles and vendor lock-in, CIOs and business leaders can immediately fund AI, analytics and customer experience initiatives. This accelerates time-to-value for digital transformation, enabling the organization to respond faster to market changes and evolving customer expectations.
- Resilience, security and compliance: Modern outsourcing models maintain validated ERP states, apply targeted compliance updates and deliver stronger SLAs than traditional vendor maintenance. Proactive security solutions help organizations in highly regulated industries — such as financial services and healthcare — reduce risk, maintain auditability and ensure business continuity even as threats and regulations evolve.
- Simplified operations and future-readiness: By streamlining overall management of the enterprise software ecosystem and eliminating technical debt, organizations can boost agility and prepare for future technologies, including AI and automation. Simplified operations mean fewer integration headaches, faster adoption of new tools and a more adaptable IT foundation for whatever comes next. Boards also gain the flexibility of a composable ERP environment — able to integrate new technologies, processes and best-fit solutions as needed, without costly replatforming or disruption to core operations.
Real-world results:
A major wireless communications company came to Rimini Street for help with a complex heavily customized SAP system for financials and inventory. They wanted full control of their software roadmaps and avoid the cycle of purchasing “Max Attention” hours due to sub-optimal support from SAP. Rimini onboarded support for their 200+ SAP products and models, including customizations, and saved the company an estimated $160M. A multinational general insurance company that provides both personal and commercial products for millions of customers worldwide and over 13k employees. They wanted to reduce their total cost of ownership (TCO) while ensuring uptime and business continuity. They chose Rimini Street based on their impressive blue-chip client list. Rimini onboarded support for their heavily customized SAP environment, helped them avoid an upgrade to S/4 HANA and saved the company an estimated $70M in TCO so far.
Further, boards see not just lower costs but greater efficiency, enhanced security and the capacity to innovate — delivering the outcomes that matter most for long-term enterprise value.
How to start: A CIO’s playbook
Transitioning to a modern, optimized ERP operating model is straightforward with the right approach and partner.
Below are six steps to help CIOs and IT executives get started:
- Map current spend: Conduct a comprehensive assessment of ERP run costs, including vendor maintenance, upgrades, support for customizations and hidden operational expenses. Understanding the true cost baseline is essential for identifying areas of waste and opportunities for immediate savings.
- Protect what matters: Inventory all critical customizations, integrations and compliance dependencies before making any changes. Engage stakeholders across IT, finance and compliance to ensure that business continuity, auditability and regulatory requirements are preserved throughout the transition.
- Prioritize around-the-edges innovation: Identify two or three high-impact initiatives where freed-up budget and talent can deliver visible results within two quarters. These could include launching AI pilots, accelerating digital customer experiences or modernizing analytics — all of which can demonstrate quick wins to the board and build momentum for broader transformation.
- Evaluate partners based on outcomes: When selecting an ERP outsourcing partner, look beyond cost. Insist on measurable SLAs, 24/7/365 access to senior engineers, comprehensive compliance coverage, proven interoperability solutions and a track record of root-cause resolution and continuous improvement. The right partner should be accountable for outcomes, not just activities.
- Plan a 90-day transition: Define clear milestones, dual-run guardrails and business-level success metrics for a smooth cutover. A phased, well-governed transition minimizes risk and disruption, ensuring that both IT and business stakeholders are aligned and that value is realized quickly.
- Communicate and engage: Keep executive sponsors, business unit leaders and key users informed throughout the process. Transparent communication and visible leadership support are critical for overcoming resistance to change and ensuring adoption of the new operating model.
By following this playbook, CIOs can ensure that they not only select the best possible partner for outsourced ERP operations but also achieve the best possible business outcomes.
Solution spotlight: How Rimini Optimize™ delivers the modern ERP operating model
The principles outlined above aren’t theoretical. The Optimize pillar of the Rimini Smart Path™ was purpose-built to address the exact challenges facing today’s enterprise leaders — delivering a modern, integrated approach to ERP operations that aligns with boardroom priorities and business transformation goals.
- Stabilize and extend the value of your existing ERP:
Rimini Optimize enables organizations to maximize the lifespan and ROI of their existing ERP investments. By decoupling from vendor-driven upgrade cycles, organizations gain the flexibility to modernize on their terms — without disruption or unnecessary churn. - Modernize without disruption:
Through expert-led managed services, Rimini Optimize streamlines operations, eliminates technical debt and provides comprehensive support for all enterprise applications, databases and infrastructure — regardless of vendor or technology. This means organizations can innovate around the edges while maintaining a stable, governed core. - Accelerate innovation and free up resources:
Our Optimize pillar’s integrated model frees up skilled IT talent and budget, allowing teams to focus on high-impact initiatives such as AI pilots, analytics and customer experience transformation. The result is faster time-to-value and greater organizational agility. - Proactive security and compliance:
With advanced, tailored security solutions (Rimini Protect™), Rimini Optimize proactively manages risk, strengthens security posture and ensures compliance with evolving regulations — without destabilizing validated environments or requiring code changes. - Seamless interoperability and real-time insights:
Interoperability solutions (Rimini Connect™, Rimini Watch™) keep ERP environments compatible with changing technology stacks, while real-time monitoring and analytics provide actionable insights to drive continuous improvement.
Accountability and measurable outcomes: With hard SLAs, named senior engineers and a focus on root-cause resolution, our Rimini Optimize solutions deliver transparent accountability and measurable business outcomes — not just ticket closure.
The result: CIOs and business leaders regain control of their ERP agenda, reduce operational costs and accelerate innovation — delivering the tangible outcomes that matter most to boards and shareholders. Rimini Optimize empowers organizations to move confidently from stability to transformation, preparing for the future of agentic AI and beyond.
Conclusion: Reclaiming the ERP agenda
ERP systems will remain essential as the operational backbone of the enterprise, but how they are managed must change. The traditional model of vendor-dictated upgrades, rising costs and critical talent tied up in maintenance is no longer sustainable for organizations seeking agility, innovation and resilience.
By stabilizing the ERP core and shifting innovation to the edges, organizations can reclaim control of their enterprise software strategy, reduce operational costs, simplify complexity, enhance security and free up skilled resources to focus on transformation — not just maintenance. A composable ERP approach, supported by modern ERP outsourcing, empowers organizations to adapt, compete and thrive in an ever-evolving and increasingly competitive business landscape.
Rimin Optimize offers a modern path forward. With integrated, expert-led services and solutions, Rimini Optimize enables organizations to modernize on their terms, prepare for agentic AI and unlock new value from existing systems — without disruption or vendor lock-in.
The choice is clear: Continue following the vendor’s roadmap or take ownership of your future.
Key takeaways
ERP continues to play a crucial role in day-to-day business, but it’s clear that the traditional model isn’t fit for the modern era — not when it drains resources and impedes agility. The case for outsourcing ERP operations isn’t just compelling — it’s imperative for any enterprise ready to raise standards, extend value and accelerate innovation. Contact Rimini Street today to learn more about how the solutions within our Optimize pillar can help extend the life and value of your existing systems, priming your organization for self-funded innovation and growth.
