Odoo Implementation Cost: Budget Your Project Efficiently
Updated November 29, 2024
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Odoo is one of the leading open-source ERP systems, with 101,442 live websites using it, according to a BuilWith report. Research suggests that Odoo is popular among many industries, but information technology and services make up 11% of the top segments. Why do companies find Odoo so attractive and efficient? It’s an open-source ERP system with a straightforward licensing model and transparent pricing plans. There are no surprises or hidden fees, and they offer a free plan and a custom plan according to different business needs.
Licensing, however, is just one piece of the puzzle when it comes to overall Odoo implementation cost. Cloud hosting, implementation process, and additional support often make up a significant portion of the total cost of the project.
In this article, we’ll explore the cost of Odoo implementation and the factors that influence the final budget. So, let’s break down the key cost components, providing you with the insights needed to budget appropriately for your next Odoo project.
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Breaking Down the Cost of Odoo Implementation
While Odoo pricing is relatively straightforward, it doesn’t include the additional costs for customization, support, hosting, and ongoing changes. The deployment method you choose can further impact the price unless you opt for the free Odoo Community edition. Still, without proper expertise, this approach can lead to higher long-term costs, further increasing the project price. Below, you’ll find a detailed breakdown of Odoo ERP implementation cost.
Odoo software licensing costs
Odoo has a flexible pricing model that can accommodate businesses of various sizes. Currently, they offer three plans:
- One App Free: Costs $0, provides access to a single Odoo app with unlimited users and is ideal for small businesses or startups
- Standard Plan: Costs $31.10 per user (per month), gives access to all Odoo apps (including sales, marketing, accounting, CRM, inventory, HR, project, POS, etc.), and is ideal for medium-sized companies
- Custom Plan: Costs $46.7 per user (per month) and also includes all Odoo applications. This plan also offers Odoo.sh hosting alongside Odoo Online like other plans have, and is perfect for medium to large enterprises that require advanced features and customization
Remember, Odoo often updates its pricing models to better suit customer demand, so keep yourself updated and check the Odoo pricing page in case you’re planning to get a license. Additionally, Odoo licensing costs can change depending on your geographical location. The prices above are for the companies registered in the US.
This is just one component of the overall Odoo implementation cost. Further down the article, we’ll explore hosting pricing, implementation, and ongoing support costs.
Odoo hosting pricing
Odoo provides flexible hosting options, each with its own pricing structure and features:
- Odoo Online: Hosting on Odoo Online is included in the Odoo Enterprise subscription without any additional charge. It offers automatic updates and maintenance, daily backups, and strong security measures. It’s ideal for small businesses looking for a stress-free experience and off-the-shelf solutions
- Odoo.sh: If you choose this option, you’ll have to pay an additional $42 monthly. In return, you’ll receive greater control and customization options, the ability to install third-party apps, and get access to development, staging, and production environments. It’s ideal for businesses with extensive customization needs
- On-Premise Hosting: Also known as self-hosting, on-premise hosting gives you complete control over the hosting environment and doesn’t require extra fees from Odoo. However, depending on the infrastructure, you’ll still have to pay for the hosting. You’ll also be responsible for the updates, security, and backup rests. It’s an ideal option for organizations with specific security requirements or existing infrastructure
You can also download the Odoo Community version if you want to use the platform without incurring licensing fees. However, you’ll only have access to a limited set of features compared to the Odoo Enterprise edition.
Odoo implementation costs
Now that we’ve covered Odoo Enterprise pricing and hosting costs, it’s time to explore the approximate budget for Odoo customization for the business needs, also known as the project budget. The cost of customization depends on various factors, including the complexity of the features, the number of modules, the number of users, and more. The standard customization (or Odoo implementation) project includes these stages:
- Discovery stage
- System configuration and data migration
- Customization and system integration
- Functional training
- Project management and oversight
- Business process optimization
- Testing and quality assurance
Discovery stage
Every successful Odoo implementation project starts with a discovery stage to understand business requirements and project scope. This stage allows your Odoo partner to learn more about your business and find the necessary gaps in your in-house team that need adjustment or insight. This process is lengthy and needs to be conducted meticulously. It includes:
- Collecting essential requirements from different departments in the company
- Analyzing existing processes and mapping them to Odoo modules
- Creating an initial implementation roadmap
Depending on the partner you choose, how much planning was done before choosing the new ERP software, and which modules you plan to use, the pricing of the discovery stage may range from $5,000 to $15,000. Additionally, Odoo offers success packs that include requirement analysis, configuration, and training starting from $3,060 to $21,250, including the discovery phase and other stages.
System configuration and data migration
This phase is especially essential for a successful Odoo implementation. It helps align with your business processes. And if the transition is smooth and timely, you’ll continue working without significant disruptions. During system configuration, we set up modules, define workflows, and configure user roles to match your business requirements. Depending on the number of modules you have, which in turn affects the complexity of your configuration, this process may cost you up to $8,000-10,000.
Data migration can also cost anywhere from $2,000 to $10,000, depending on the volume and complexity of the data. For a more accurate cost assessment, we recommend engaging experienced Odoo consultants or scheduling an introductory call with our experts at Glorium Technologies.
Customization and system integration
Customization and system integration take up quite a large portion of the budget. Odoo offers 1000+ modules that work either independently or interdependently to help you grow your business. Such collaboration between modules, unique business needs, and opportunities for future growth require customization. This process involves developing specific features, adjusting existing modules to suit your business requirements better, and integrating Odoo ERP with your pre-existing systems (CRM, accounting, etc.).
This stage of Odoo implementation is lengthy and requires engagement from an experienced development team, including Odoo developers, integration specialists, functional consultants, project managers, QA engineers, and system architects. Engaging the right mix of these professionals is essential for successful customization and integration, but it also affects the final Odoo implementation cost.
This is the most varied cost category in the Odoo implementation cost subject. Since businesses have such unique needs, it’s difficult to determine an accurate estimate. However, depending on the level of customization and how intricate the scope of the project is, you may end up paying somewhere between $5,000 and $10,000 and even up to $50,000.
Functional training
Functional training is essential to ensure your team knows how to interact with your new ERP system and can use it comfortably. We usually recommend functional training to avoid future errors, misunderstandings, and work disruptions. This stage involves educating users on the systems’ functionalities, workflows, and best practices. The cost of functional training varies depending on the partner you choose. For example, Odoo has an official functional training package for approximately $2,374 for a 10-day online course. However, more in-depth courses and training sessions may cost around $5,000 to $10,000. The longer the training, the more the cost will grow. It also depends on the number of attendees (larger groups may increase expenses) and the training format.
Project management and oversight
Odoo implementation is an intricate process and requires project management and oversight to coordinate the various aspects correctly and efficiently. For example, with our Odoo implementation projects, we ensure that the project stays on schedule, within budget, and meets the organization’s objectives. It’s roughly estimated that project management and oversight costs range from $5000 to $20,000 depending on several factors, including project complexity, duration, and team size.
Process optimization and QA
The process optimization stage is a continuous process that affects project management and oversight, training, customizations, and other phases of implementation. It involves planning, analysis, and recommendations. Alongside process optimization, we have testing and quality assurance that are essential to rectify issues before the system goes live. Depending on the project’s complexity, the scope of testing (functional, performance, security, user acceptance), and resource allocation, the quality assurance stage should cost you around $5000. For large enterprises, this number can grow to $20,000 or more.
Ongoing Odoo software support and maintenance costs
Odoo ERP implementation is the first step to the complete digital transformation of your business. In order to avoid problems and malfunctions, meet new requirements, and protect from hackers’ attacks, the system requires constant support and updates. These costs can be significantly different depending on the level of support you decide to purchase, the complexity of your installation, and the specific changes or improvements you may need in the future. In this part of the book, you will also learn about the costs of operating and supporting Odoo ERP, as well as the benefits of preventing problems before they happen.
Support and continuous improvements
Support and continuous improvements include technical assistance with troubleshooting, resolving system issues, and answering user questions. Odoo offers the above-mentioned services in its subscription, but if you opt for customizations, you may need to pay more for the support your customization partner provides. Customization updates and compliance, as well as onboarding new users, will also add to the final Odoo implementation cost. Since the first year of system deployment is the most hectic and unpredictable, it’ll require adjustments and improvements, which may cost up to $25,000-$30,000, depending on various factors.
Other ongoing costs
The cost of Odoo implementation is influenced by various factors (as we mentioned above), including some ongoing processes and their complexities. For example:
- Hosting fees
- Subscription fees
- Scalability adjustments
- Security enhancements
And more.
Depending on the subscription you choose, you may end up paying up to $47,000 annually. As for the hosting prices, they can be free, or you may pay approximately $1,000-$1,5000 per year, but if you decide to scale up your server with supporting backup, your budget should be around $3,000 and $5000.
Odoo Implementation Cost Breakdown
| Cost Category | Initial Investment | Ongoing Costs |
| Licensing Costs | $0 – $46.7/user/month | $31.10 – $46.7/user/month |
| Hosting Costs | $0 – $42/month | $1,000 – $5,000/year (depends on hosting) |
| Discovery Stage | $5,000 – $15,000 | – |
| System Configuration and Data Migration | $10,000 – $20,000 | – |
| Customization and System Integration | $5,000 – $50,000 | – |
| Functional Training | $3,000 – $10,000 | – |
| Project Management and Oversight | $5,000 – $20,000 | – |
| Testing & Quality Assurance | $5,000 – $20,000 | – |
| Support and Continuous Improvements | – | $25,000 – $30,000/year (first year highest) |
| Other Ongoing Costs | – | $3,000 – $47,000/year (including scalability) |
Glorium Technologies: Odoo Implementation with an Official Partner
Choosing the correct ERP is essential. Too often, businesses fall into the trap of selecting a “cookie-cutter” solution even when they’re overpriced and poorly suited to their operations. However, choosing a trusted implementation partner is even more critical. The right partner for your Odoo ERP implementation can make all the difference in achieving successful deployment and transformation.
As an official Odoo partner, Glorium Technologies brings expertise, precision, and a client-centric approach to every project. Whether you need configuration services, data migration, customization, or general support, our technical and business experts are ready to make your transformation goal a reality.
Let us help you realize the full potential of Odoo ERP for your company. Schedule a free, 30-minute introductory call and spend the most strategic half-hour of your week discussing the future of your business.
