ERP System in Jordan: Key Challenges Facing Local ERP Companies

Originally published: October 08, 2025 07:05:46 AM, updated: October 08, 2025 07:08:29 AM

Enterprise Resource Planning (ERP) systems are central to enhancing efficiency, transparency, decision?making, and competitiveness. For Jordanian enterprises, ERP has the potential to modernize operations across manufacturing, services, logistics, healthcare, and public sectors. However, while demand is increasing, local ERP companies face multiple challenges to adoption, implementation, and growth. This article examines those key challenges and proposes strategies to overcome them.

Overview of the ERP Market in Jordan

The Jordanian ERP software market remains small but steadily expanding. Many businesses still equate ERP with basic accounting software, which limits awareness of its full strategic potential. Government efforts to promote digital transformation have accelerated adoption, but gaps in infrastructure, regulation, and technical expertise persist.

Key Challenges

Market Size, Awareness & Demand

Many Jordanian SMEs view ERP as an expensive luxury rather than a necessary business enabler. The limited market size and modest IT budgets make it difficult for local vendors to scale profitably.

Skills and Talent Gap

While Jordan produces many ICT graduates, ERP expertise remains rare. Most new hires lack practical experience in process mapping, integration, and change management—skills vital for successful ERP deployments.

Integration with Legacy Systems & Infrastructure

Businesses often rely on fragmented legacy systems or spreadsheets. Migrating to modern ERP platforms involves significant data cleansing, process redesign, and infrastructure upgrades, which slow adoption.

Regulatory, Legal & Compliance Barriers

Jordan’s emerging data protection and digital economy laws require ERP providers to ensure compliance, but frequent updates and limited clarity can create implementation uncertainty. Licensing and import duties further complicate deployment for small vendors.

Cost & Funding Constraints

ERP implementation costs—including software, hardware, customization, and training—are prohibitive for many local firms. Without financing mechanisms or government incentives, SMEs often postpone or limit their ERP investments.

Change Management & Cultural Resistance

ERP adoption challenges are not only technical but cultural. Many organizations resist altering long-standing workflows, delegation structures, and reporting hierarchies. Strong leadership and user training are essential to overcome this.

Security, Data Privacy & Digital Trust

With more companies moving to the cloud, cybersecurity and data sovereignty have become top concerns. Clients demand transparency about where their data is stored and how it’s protected, pushing ERP providers to adopt higher security standards.

Strategies & Recommendations

To overcome these challenges, local ERP companies should:

• Offer modular or cloud-based pricing models to suit SMEs.
• Build partnerships with universities to close the talent gap.
• Strengthen expertise in legacy system integration.
• Invest in compliance and cybersecurity certifications.
• Launch educational campaigns highlighting ERP ROI.
• Support clients through continuous change management and post-launch training.

Conclusion

ERP systems hold great potential to transform Jordanian businesses, but realizing this potential requires addressing market awareness, skills shortages, compliance complexity, and cost barriers. By focusing on education, affordability, and trust, Jordan’s ERP providers can play a pivotal role in the country’s digital transformation journey.