The Verticalisation of ERP. Why Dynamics 365 Contractors Are Now the Difference Between Success and Stagnation

For years, ERP was sold as a one-size-fits-all promise a central nervous system for any business, regardless of industry. But in 2025, that idea feels almost quaint.

Today, ERP is defined by verticalisation solutions purpose-built for the nuances of specific sectors.
Manufacturers need predictive maintenance and IoT-enabled visibility. Financial services demand multi-entity consolidation and ESG reporting. Retailers expect real-time customer intelligence. Healthcare organisations require end-to-end data security and compliance under HIPAA or FDA regulations.

And no platform has leaned into this shift more effectively than Microsoft Dynamics 365.

From Monolithic to Modular

Microsoft’s evolution of D365 from a single, broad ERP to a composable ecosystem of industry clouds has changed the delivery model entirely. Instead of long, inflexible deployments, organisations are layering modular capabilities on top of a common Dataverse and AI foundation scaling functionality as business maturity increases.

The result? ERP projects that are faster, smarter, and infinitely more adaptable.

But this transformation introduces a new challenge and opportunity for the talent market.

The Rise of the Industry-Fluent Contractor

A D365 contractor in 2025 is not simply a functional consultant or technical specialist.
They are now industry interpreters professionals who can translate sector-specific regulations, operating models, and data flows into tangible D365 configurations.

  • In manufacturing, the demand is for contractors fluent in IoT telemetry, demand forecasting models, and mixed reality workflows.
  • In financial services, it’s those who can embed predictive cash-flow models, ESG metrics, and regulatory controls within D365 Finance.
  • For retail, the value lies in integrating Customer Insights, Commerce, and AI-driven merchandising to deliver omnichannel intelligence.
  • Within healthcare, contractors with experience aligning Cloud for Healthcare to patient engagement and data-privacy standards are commanding a premium.

These roles sit at the intersection of business process, data architecture, and industry regulation and they’re redefining what it means to be a D365 expert.

Why This Matters for the Market

As organisations move from generic ERP roll-outs to high-context, vertical deployments, they need specialists who can configure the nuances, not just the core.

That’s why D365 contractors with deep industry fluency are in unprecedented demand not to fill resource gaps, but to drive value creation.
They’re the difference between implementing software and activating strategy.

The next wave of ERP transformation won’t be led by technology alone, it will be led by the people who understand how to make it relevant.

In short:
ERP is evolving from a system of record to a system of intelligence and the most valuable contractors are those who can bring that intelligence to life, sector by sector.

Why Do So Many D365 ERP Projects Go Over Budget?

We’ll be honest: that headline stat about 362% of ERP projects going over budget? We made it up to get you here. But if you’ve ever lived through one, you probably thought it sounded about right.

And that’s the problem. ERP overruns are so common that exaggerated figures feel believable. In our experience advising and rescuing ERP projects, the truth is clear: they don’t go off the rails by accident, they fail for the same, predictable reasons.

Here are the four biggest ones we see time and again.

1. Rushed and unrealistic planning

More often than not organisations attempt to compress planning into a matter of weeks. The resulting project plan is full of assumptions and optimistic deadlines, with little detail behind them.

The truth is that ERP planning is a discipline in its own right. When rushed it creates a cascade of problems that play out during implementation: underestimated complexity and inadequate resource allocation.

Our advice: Take planning seriously. Invest the time upfront and involve an experienced ERP project manager from the outset. Every day spent planning properly saves weeks and significant costs later.

2. Underestimating the internal commitment required

ERP transformation is not something people can do “on the side” while maintaining their usual day jobs. Yet, this is exactly the expectation many businesses set.

Without dedicated internal resources projects will stall. Knowledge gaps emerge, and the partner ends up making decisions that should sit with the business. The result? Misalignment, delays and escalating costs.

Our advice: Treat ERP as a full-time commitment, either backfill your people or free them up entirely. There is unfortunately no halfway house that works.

3. Cutting corners on an inherently expensive undertaking

ERP systems are expensive because they’re complex and business-critical and attempts to drive down cost at every stage, whether by reducing scope, minimising testing, or resisting contingency planning almost always backfire.

Our advice: Accept that ERP is a significant investment. Build in a 20–30% contingency buffer to your budget. Surprises will happen and having the flexibility to absorb them avoids the frantic (and costly) scramble for extra funds mid-project.

4. Becoming overly dependent on your partner

This is perhaps the most damaging mistake. When all knowledge, code and documentation sits with the partner the client loses visibility and control. Every change, however minor becomes a negotiation and often a very expensive one.

Our advice: Ensure knowledge transfer from the start. Maintain documentation internally and build confidence within your team so you can challenge and contribute to decisions. ERP should empower your business, not create long-term dependency. Also – take our partner dependency assessment, it takes you five minutes and will give you peace of mind. Find it here

Final thoughts

ERP projects fail for predictable reasons. The good news? They are also avoidable with the right planning and governance.

If you’re unsure whether your business has fallen into the trap of over-reliance on your partner, we recommend assessing your position now, we have created a quick assessment check available here if you need confirmation. The earlier you identify these risks, the easier they are to fix.

Whilst our 362% figure was made up, the costs of a poorly run ERP project are very real.

If you want to know whether your partner is delivering, or they’re high risk, we have a quick partner dependency assessment. It takes five minutes and will give you peace of mind: Find it here

Hiring a D365 F&O Contractor: The End-User’s Field Guide

(North-American Edition)


Welcome

If you’re reading this, congratulations: you’re entertaining the radical idea of buying expertise exactly when you need it. And only for as long as you need it. In a world where every CFO is counting headcount like calories, that’s borderline heroic.

“But Ryan, aren’t contractors mercenaries who vanish mid-project?”

Only if you pick the wrong ones and treat them like disposable coffee pods. The D365contractors.com Community sticks around because good pay + good treatment = loyalty. Simple.

This guide is specifically for hiring Dynamics 365 Finance and Operations freelancers, aka D365 F&SCM aka Dynamics 365 Finance & Supply Chain experts. We will use the terms interchangeably- but make no mistake we are talking about the legacy Dynamics AX product.


Why Bother?

These are the 4 most popular reasons for choosing a contractor over an FTE hire. But it’s not an exclusive list. If in doubt, we are happy to walk through a custom-fit analysis.

  • Speed to Impact. A seasoned D365 F&O pro can land on Monday and be worth their bill rate by Thursday.
  • Project-Length Flexibility. Six-month carve-out? Three-week rescue mission? No awkward “what do we do with them now?” conversations.
  • Different Budget Bucket. Contractor spend usually sits in project/OPEX, not head-count CAPEX- handy when FTE freezes rain down from Corporate.
  • Partner Counter-Balance. Bringing an independent D365 F&SCM SME in-house lets you own decisions instead of rubber-stamping your implementation partner (and often saves a fortune).

Knowing who NOT to hire is arguably more important than choosing who TO hire. There’s a lot of fakers, AI bots and time wasters out there.

We have a LOT of data about the location D365 F&O freelancers and permanent talent across the USA. Happy to share what we know about your local town or city (ask Ryan).


Budget Intelligence:

Here’s what North-American market rates for D365 F&O contractors look like at the time of writing (June 2025).

RoleTypical Range (USD / hour)
D365 F&O Functional Analysts (Fin, SCM, MFG, WMS)$125 – $175
D365 F&O Project Managers$150 – $220
D365 F&O Solution Architects$160 – $220
D365 F&O Developers & Technical Architects$130 – $180

If you work with a Partner already, these rates might make your CFO pay attention. We would back D365contractors.com Community members to be every bit as good (or better!) than Partner consultants.

Invoice Cadence: We pay our contractors every two weeks. If you hire directly, expect anything from weekly timesheets to 45-day terms: but clarify this up-front so Accounts Payable doesn’t panic.


You Are Now a Talent Magnet

Think of D365 contractors as customers: they choose you as much as you choose them. Want them to stick around?

  1. Pay promptly. Nothing kills goodwill faster than a “Just chasing my invoice…” email.
  2. Communicate scope changes early. Especially including project delays. Surprises are fun only on birthdays.
  3. Include them in wins. A contractor who feels part of the team is far less likely to ghost-quit.

(And yes, if you use D365contractors.com: we background-check, community-check, and paperwork-wrangle so you don’t have to.)


Outcomes, Outcomes, Outcomes

Nobody hires an F&O contractor because they “seem nice.” You hire them to:

  • Hit a go-live date that’s already wobbling.
  • Rescue a warehouse where pick paths resemble a toddler’s Crayon drawing.
  • Transfer knowledge so your internal team can run D365 F&SCM without a training-wheel partner.

Measure success in business terms- days shaved off close, lines picked per hour, % reduction in partner spend- not Jira tickets closed.


Proof It Works (Real Stories)

  • Global Toy Manufacturer – Three senior D365 F&O specialists parachuted in; go-live stayed on track, and internal ownership skyrocketed.
  • Industrial Engineering Manufacturer – D365 vacancies that lingered for months were filled in days, delivering “the best go-live we’ve ever had.”
  • Food Manufacturer – Bilingual warehouse & finance experts turned a shaky rollout into a model upgrade, with audit-ready docs and happier operators.
  • National Agricultural Firm – Upgrading from Dynamics AX to D365 F&O started with a complete overhaul of their chart of accounts. Get the legacy platform and data right before you launch an upgrade.

Sound like you? We can provide full information on these upon request. Just ask Ryan.


Admin (but Make It Easy)

Like any business-to-business relationship, there is no escaping the admin. Contractors have mouths to feed, mortgages to pay, taxes to manage. We do what we can to make that easy for you.

Some pointers:

  • Timesheets: Approve weekly in our portal; every hour has an audit trail and optional work-note narrative.
  • One All-In Rate: Taxes, benefits, insurances—baked in. No hidden HR overhead.
  • Records Retention: We store timesheets & invoices for two years for painless audits.

Prefer to self-manage? Be ready to juggle W-9s, 1099s, vendor onboarding, PO amendments, and the occasional “my password expired again” ticket.


First Time Basics

First-time D365 F&O contractor hire? Talk to someone who’s done it: successfully. We couldn’t recommend this enough.

A quick coffee with a peer CFO or IT leader can save you from six-figure mistakes. (Need intros? We know a few.) We won’t be offended if you’d prefer to do this than talk to use. But we can help here too.


Decide

Full-time hire, partner resources, or contractor?

None are irreversible, but we think only one gives you immediate firepower without permanent payroll weight. If you remember nothing else about hiring F&SCM freelancers, remember this:

Choose wisely, pay fairly, treat them well, and watch your D365 F&O project (and your sanity) thrive.

Ready when you are if you want expert advice.