The verdict in three sentences
For a mid-sized enterprise, an off-the-shelf SaaS at 4,500 TND/month (40 users) costs 270,000 TND in licences over 5 years, whereas a custom build comes to 190,000 TND + 22,000 TND/year support. The tipping point sits around 28 users: below that, SaaS wins; above it, custom becomes more profitable. The final decision turns on six criteria, not price alone: business criticality, process specificity and data sovereignty weigh heavily.
The 3- and 5-year TCO calculation
The total cost of ownership (TCO) includes licences, integration, maintenance and hidden costs. Here is the comparison over a 40-user scope.
| Line item | Off-the-shelf SaaS | Custom build |
|---|---|---|
| Year 1 cost | 54,000 TND (licence) | 190,000 TND (build) |
| Annual licence/support | 54,000 TND/yr | 22,000 TND/yr |
| Customization | 25,000 TND (options) | Included |
| Data export/migration | 12,000 TND | You control it |
| 3-year TCO | ~199,000 TND | ~234,000 TND |
| 5-year TCO | ~307,000 TND | ~278,000 TND |
At 3 years, SaaS stays cheaper; at 5 years, custom moves ahead thanks to support costs well below a perpetual licence. The larger the headcount grows, the wider the gap in favour of the build.
The 6 build-vs-buy decision criteria
| Criterion | Favours build | Favours SaaS |
|---|---|---|
| Business criticality | Core business | Support function |
| Process specificity | Highly specific | Standard |
| Data sovereignty | Sensitive/regulated | Low sensitivity |
| Number of users | > 28 | < 28 |
| Budget model | Capex preferred | Opex preferred |
| Usage horizon | > 4 years | < 3 years |
If 4 of 6 criteria lean toward build, custom is probably the right call. Watch the hidden SaaS costs: billed customization, export fees on exit, and surcharges tied to scaling through user tiers.
Mini case study
Diarmuid, CIO of a mid-sized industrial enterprise in Dublin (240 staff, 40 target users), weighs a US SaaS at 4,500 TND/month against a build. His production-management process is highly specific and his client data is sensitive (sovereignty).
Over 5 years, SaaS comes to 307,000 TND versus 278,000 TND for the build, a 29,000 TND saving, plus code ownership and data control. As 5 of 6 criteria lean toward build (criticality, specificity, sovereignty, headcount, horizon), Diarmuid chooses custom. A decision backed by both TCO AND data strategy.
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FAQ
At how many users does custom become profitable?
The tipping point sits around 28 users on this model: beyond it, SaaS licence cost exceeds the support cost of an amortised build.
What are the hidden costs of SaaS?
Budget for customization (~25,000 TND), data export fees (~12,000 TND) and scaling pricing tiers, which are often underestimated in comparisons.
Is the build always more expensive upfront?
Yes: 190,000 TND in year 1 versus 54,000 TND for SaaS. The build's advantage shows over time, from year 4 or 5 onward.
Does data sovereignty justify a premium?
For regulated or strategic data, yes: hosting and controlling your data reduces legal risk and dependence on a foreign vendor.
Can the two approaches be combined?
Yes: many enterprises keep SaaS for support functions (HR, payroll) and build custom for the differentiating core business, optimising overall TCO.
Let's scope your project. Give us your user count, process criticality and usage horizon, and we'll cost the build-vs-buy TCO. Detailed quote within 48 h. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
