When deploying an enterprise-grade ERP like Microsoft Dynamics 365, businesses face a critical decision: should they handle the implementation internally or engage with external experts? This choice can significantly influence the success of your digital transformation, the total cost of ownership, and long-term system scalability.
In this blog, we compare in-house and partner-led approaches to implementing Dynamics 365 Finance and Operations, offering insights to help you choose the best fit for your business needs, resources, and timeline.
Understanding the two implementation paths
An in-house implementation involves using your internal IT and business teams to plan, configure, test, and deploy Dynamics 365. It requires a deep bench of skilled resources and a clear understanding of how Dynamics 365 aligns with business processes.
On the other hand, a partner-led implementation is managed by experienced consultants or system integrators, typically certified Microsoft Dynamics implementation partners, who bring specialized knowledge, best practices, and structured delivery methodologies.
Let’s break down how these two paths compare across various dimensions:
1. Expertise and product knowledge
Partner-led: Microsoft Dynamics implementation partners bring years of experience, certified consultants, and a deep understanding of Dynamics 365 Finance and Operations. They’ve worked across industries and encountered various use cases, which allows them to offer practical solutions, foresee pitfalls, and align the platform with your specific goals.
In-house: Unless your internal team includes seasoned Dynamics 365 specialists, there’s a steep learning curve. Implementing an ERP isn’t just about configuration—it’s about business process re-engineering, data migration, compliance, and user training. Without prior experience, in-house teams risk missteps and longer timelines.
2. Speed and time to value
Partner-led: External partners can accelerate deployment thanks to tried-and-tested methodologies (like Sure Step or Agile). With clear project timelines, dedicated resources, and proactive planning, a partner-led implementation often results in faster go-live.
In-house: Internal teams juggling other priorities may stretch timelines. Additionally, first-time implementers may spend significant time troubleshooting issues or adjusting misaligned configurations, delaying ROI.
3. Cost considerations
In-house: On paper, handling the project in-house might seem more economical, especially if the internal team is already salaried. However, indirect costs such as delays, scope creep, overtime, and retraining can inflate the budget.
Partner-led: While external partners have a higher upfront cost, they bring clarity in scope, avoid common pitfalls, and minimize rework. Many offer flexible engagement models—from end-to-end delivery to co-managed implementations—helping balance budget and support.
4. Customization and scalability
Partner-led: Implementation partners offer specialized skills to extend and tailor Dynamics 365 Finance and Operations. From building custom integrations to configuring industry-specific modules, their experience ensures scalable, future-proof architecture.
In-house: While internal developers can make customizations, lack of familiarity with D365 architecture may lead to inefficient code, compatibility issues with future updates, or unsupported configurations that hinder long-term scalability.
5. Change management and training
Partner-led: One of the most overlooked aspects of ERP implementation is user adoption. Good Microsoft Dynamics implementation partners offer change management strategies, end-user training programs, and role-based onboarding plans to ensure a smoother transition.
In-house: Internal teams may lack the perspective or resources to create comprehensive training materials. Without proper change management, resistance to adoption may hinder full system utilization.
6. Post-go-live support and upgrades
Partner-led: Most partners offer post-go-live support plans, ensuring smooth handoff, issue resolution, and help with Microsoft’s bi-annual updates. Some even provide managed services, allowing you to optimize usage over time.
In-house: Maintaining an in-house team post-implementation means ongoing training, support, and monitoring costs. Managing updates and integrations without expert guidance can be risky, especially with evolving compliance requirements.
7. Risk management
Partner-led: With experience across multiple deployments, partners are skilled at risk identification and mitigation. From data migration issues to timeline slippage, they bring structured governance and QA processes that help reduce uncertainty.
In-house: Lack of experience makes internal projects vulnerable to delays, budget overruns, and integration failures. Without established processes, identifying and mitigating risks becomes reactive rather than proactive.
Choosing the right approach for your business
Each business has unique needs, and the right implementation strategy depends on several factors:
Go with an in-house implementation if:
- You have a highly skilled internal team with ERP experience
- Your budget is constrained, and timelines are flexible
- You want to control every aspect of the implementation
Choose a partner-led implementation if:
- You lack Dynamics-specific expertise in-house
- You want to minimize risk and accelerate time-to-value
- Your project involves complex customizations or industry-specific needs
- You want access to ongoing advisory, training, or managed services
Some businesses even adopt a hybrid model, combining the strengths of both approaches. For example, your team may handle data migration or UAT, while the partner leads design, configuration, and deployment.
Final thoughts
Choosing between in-house and partner-led Dynamics implementations is a strategic decision that impacts long-term ERP success. While in-house efforts offer more control, they often come with greater risk and slower delivery. In contrast, Microsoft Dynamics implementation partners provide the tools, experience, and best practices to help businesses maximize their Dynamics 365 Finance and Operations investment.
Whatever path you choose, aligning your implementation strategy with business goals, technical readiness, and available resources will ensure a smoother journey and a better return on investment.