Posted by Lewis Murara and Christopher Iles[i]
A major decision faced by many countries is what sort of Financial Management Information System (FMIS) they should develop to support their PFM reform efforts. The decision is more difficult in low-capacity countries where implementing an FMIS can have a disproportionate impact on management, operations, and operating costs.
There are three general FMIS options that governments can consider:
- Bespoke, i.e. own developed software solutions
- Customized “enterprise resource planning” (ERP) systems
- Non-customized COTS systems
In making the decision, recent studies have demonstrated that there is no single best solution. Over a decade or so, the tendency in many Latin American countries has been for in-house development of their FMIS, while Africa has preferred commercial off-the-shelf solutions (COTS) and developed countries have tended to favor customized ERPs.