ERP Consulting Fraud: Watch for the Warning Signs

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A good conman can have you eating out of the palm of his hand and believing that he is the savior for all of your company’s woes. TV shows like “House of Lies” would have you believe that there are business consulting firms that specialize in making money off gullible business executives without actually doing any beneficial work for them. While the truth may not be quite so extreme, there are some consultants who will take advantage of you, and you should look for warning signs of ERP consulting fraud.

According to a Panorama Consulting report, when a consulting firm shows up promising streets paved with gold, you should take a closer look for these warning signs.

Expensive products that produce minimal results. You expect to pay a lot for consulting, and some firms will take advantage of that expectation by charging a great amount for something you could have formulated yourself
Track record. Are there allegations of fraud or disputes against the consultancy? They may want to explain away any suspicious activity, but you should investigate carefully
Kick-backs. Sometimes a consulting company uses you as its own money-making tool, recommending products from other companies that give them kick-backs. They do not necessarily have your best interests in mind.

It can be costly and very time consuming to have to go after a bad consulting firm after they have already done damage to your company. You might spend years in court and still come away with very little. By using proper governance and controls, thorough assessment of the consultant’s methodologies, and providing checks and balances to guard against fraud, you can minimize the risk of a consultancy taking advantage of your trust.

At MIBAR.net our team is 100% committed to your success under any circumstance. Let us prove it to you.

by MIBAR.net, Microsoft Dynamics ERP Partner Long Island, New York and NYC Microsoft Dynamics ERP Partner