How to Reduce MS Dynamics Maintenance Costs

Dynamics 365 Finance (previously Dynamics AX or Axapta) is considered to be one of the best tools for the optimization of business processes.

In fact, Microsoft Dynamics AX/365 Finance helps achieve automation and modernization of the main processes in various fields such as production methodologies, financial transactions, working with documentation and staff management. Improved outcomes and successful business development are exactly what the software was created for.

However, during this current time of uncertainty, companies also face the challenge of reducing operational costs and cutting budgets however possible. Leaving or changing an ERP system is practically unfeasible and therefore, companies face an important question: how can MS Dynamics support costs be reduced?

Cost of Supporting Microsoft Dynamics ERP

The cost of Microsoft Dynamics 365 ownership can be somewhat high. To implement the Microsoft Dynamics 365 Finance and Operations system, companies turn to integrators – large Microsoft partner companies that can install the system and sell a license. Besides integration, such companies can also support the software, although this service would be considerably expensive since a major integrator is generally uninterested in minor system refinements.

Thus, the hourly rate of such companies may range from 130 to 170 euros per hour.

If Dynamics maintenance fees from integrators don’t fit your company budget, there are two other available options:

• hire a Dynamics developer into the staff of your enterprise;
• out staff or outsource.

The first option guarantees timely response to all bugs as well as maintenance of the system to a perfect working condition, though it can be expensive for a company to retain a high-level specialist who might not have sufficient work tasks for the majority of working hours.

The hourly rate of an in-house MS Dynamics developer ranges from 40 to 70 euros per hour. Additionally, sick leave, vacation time, benefits packages, and other expenditures for each employee must be factored in..

The second option may be the most cost-efficient solution. Concisely, you can find small- or medium-sized MS Dynamics resource companies that provide task-by-task support for your system (fixing bugs and issues as they appear or customizing the system when necessary) or offer dedicated developers who will be fully focused on your project for a certain amount of time.

The hourly rate of outsourcing companies can range from 35 to 50 euros per hour. When it comes to comparing in-house vs. outsourcing budgets, hiring in-house developers includes additional expenditure and the need to supply such employees with tasks. For outsourcing, this is a simple rate that remains flexible as per the amount of work needed.

In fact, we recommend reading our guide on hiring Dynamics 365 Developers for more information on this topic.

Let’s now review the outsourcing option in more detail.

Hiring Outsourcing Companies to Reduce MS Dynamics AX / 365 Finance Support Costs

Small offshore companies such as i-Neti can be the best option for outsourcing system improvement. Aside from their pricing that we’ve covered above, there are more benefits to consider. Most outsourcing companies have a wide scope of experience (due to working across various industries) as well as deeper industry-specific knowledge which depends on that aforementioned experience. Additionally, such companies are more flexible as they:

• may offer outsourcing locations with a rich talent pool and the necessary experience;
• may swiftly adapt to different projects;
• are able to join projects at short notice.

Quick start

A large integrator company is not interested in dealing with minor issues. Even if they have such a desire, they may not be able to quickly join a project and fix the recognized errors. Outsourcing companies are usually ready to offer lower MS Dynamics maintenance costs and provide a specialist who will investigate a problem and fix it. Most often, there is a need to react immediately, as any bugs may slow down the work processes of an entire company and delays may result in fiscal losses. In such cases, the ability to start the project quickly, probe and consider the issue, tune into the work process, and take into account all the details and nuances come first.

Flexible work hours

To fix all problems quickly, you need more than a specialist who performs their duties exclusively during working hours. Dynamics support costs can be significantly reduced if you conclude a contract with a company that, regardless of the time of day/time zone differences, will quickly commence work on any and all problems that have arisen.

Extensive service offering

What is great about outstaffing or outsourcing? In a nutshell, this gives you the ability to quickly and inexpensively resolve incidents and service requests:

• ‘Incidents’ refers to the incorrect operation of the system, or a user within the system whose work halts the operational activity of the enterprise;
• Service requests are typical actions to configure the system such as changing settings, access rights, analyzing functionality, preparing documentation, etc.

Outsourcing companies provide their customers with a full range of services at minimal Microsoft Dynamics maintenance costs. These may include:

• Flexible customization of business processes in accordance with specific needs;
• Error correction;
• System modification and development of new modules;
• Integration with external systems (other business applications and services);
• Data migration from other systems;
• Analysis and identification of performance problems;
• Optimization of MS DAX (code optimisation + database optimisation);
• Technical updates;
• Quick recovery of the application.

Outsourcing MS Dynamics Support: The Role of i-Neti

From i-Neti’s extensive experience working to support customers’ MS Dynamics operations, we’ve identified that our clients mostly benefit from:

• Adequate Dynamics AX / 365 Finance maintenance pricing that saves on budget and reduces the cost of ownership;
• Flexibility in choosing the format of cooperation, whether on a task-by-task basis or by utilizing a fully dedicated team;
• Quick response time within 24 hours, reducing downtime;
• Worldwide coverage – even in case company branches are geographically dispersed, we are able to cohesively work with them over any and all time zones.

Do you have any questions? Contact our team to get a full consultation on how your company can reduce MS Dynamics support and maintenance costs. Based on our experience, we’ll be able to offer the most cooperative format and the most cost-effective approach.