So, how much exactly will buying EHS software set you back? This might be one of the first questions people often ask us after one of our presentations. The truth is there is no way to give the correct answer to a question like this. It is almost like asking how much does buying a house cost. The real answer is it will depend highly on several factors. Using the same house metaphor, you have to answer some questions first. How many windows do you wish to install in your house? Where do you intend to buy it? Who is the architect who will design the house? Buying EHS software is not so different and this article will try to list down all the factors that contribute to the price range of current EHS software offerings.
EHS software statistics
First of all, we look at some interesting points.
1. A company’s EHS department often dictates the amount that will be spent in buying EHS software. In fact, half of all the current and previous buyers decide on the budget from purchasing the software, installation, integration, and the perpetual licensing costs.
2. The cost that these EHS departments shell out for EHS software ranges from $58,000 at the lowest to up to $2,000,000 for the top of the line software. It roughly averages into just over $300,000.
3. Complete EHS packages can go from $70,000 to $10 million. This is in great contrast to specialized software that sells from a few thousand dollars up to a quarter million.
These numbers only emphasizes the point said earlier. EHS software costs can vary widely depending on the type and its use. There are ways however, given the need of your company, to determine the possible expense that you are going to accrue in buying EHS software.
Tailor Made EHS Software vs Generic EHS Software
Depending on your need, you may opt for either a tailor made solution or a generic version that is available off the shelf. There are pros and cons for both models and the prices can vary depending on your choice as well. Generic EHS software is almost always a lot cheaper than EHS Software. From the point of view of the seller, this makes a lot more sense. When a software company dedicates resources into developing software that can only be sold once, they will be under pressure to, not only recoup their expenses from you, but to actually make a profit that would at least compare to selling off the shelf software. What this means for you as a buyer is that you have to find out if you can afford to buy generic EHS software before even considering to buy tailor made EHS software.
The total rundown of costs from custom software will include technical support and training, aside from the cost of the actual product. Since the software is only made available for you, the selling company will not be able to afford to sell these services freely. When buying generic EHS software, not only will the selling company be able to make more money by reselling the product, they will also be able to reuse separate support features like the two mentioned earlier.
In the long run however, tailor made software might be more effective than generic software. Thus, we recommend buying tailor made software when you can afford it. You can do this by either contracting a company to spend some time with you to complete your EHS software or by hiring directly a software development team directly. Depending on the contract and the personnel you may hire, the price can also vary widely.
Quality vs Economy
The previous statistics show just how expensive EHS software can be. This is not surprising given the current trend of software prices across the software world. When trying to go the economical route there are a few things that you need to remember. First of all, EHS software is meant to save human lives, your company may be frowned upon by the state, your customers or by your employees themselves should you try to skirt around trying to invest a reasonable amount in buying your EHS software. Another pitfall that you should look out for is that a cheap EHS software can cost you more than an expensive one should your EHS software fail to safeguard you from environmental or safety regulation suits. Should the EHS software work fine and do it’s function properly however, all will be forgiven and you will be congratulated by the board of executives.
If you choose to go for quality, you should first find out if what you are buying is worth the amount. For an off the shelf kind of EHS software, you have to be extremely wary of buying something that is too expensive. Something should not be too expensive if it can be resold again to an infinite number of customers at no cost at all.
Getting your ROI
This is a very difficult question to answer as it presents with plenty of factors. First, what are the things that you will be saving on once you get your EHS software? The obvious one is a deduction on your payroll budget as EHS may automate most of the functions that is often done manually by your EHS staff. But where you can recoup most of the value is when you protect your company from lawsuits and penalties that could be thrown against you when you are not careful in shielding your company from regulating laws violations.
Final Words
There is no one answer in deciding which EHS software suits a company budget-wise. A good rule of thumb is to exhaust all the expenses that you can on buying the best one possible. It is never easy to be up against the government that is has zealous oversight especially now that environmental issues have taken the social spotlight. In the end, the cost may be astronomical, but it will be all worth it when you realize how much damage EHS blunders can cost.
