The verdict in three sentences
For a standard need (CRM, invoicing, HR, ticketing), an off-the-shelf SaaS almost always wins: shared, maintained, up to date, with no build risk. Custom development is only justified if your need is a competitive advantage or if the "almost-fits" SaaS forces costly daily workarounds. The right question isn't purchase price, but 5-year TCO — recurring licenses versus an amortized investment.
Off-the-shelf SaaS: the true 5-year cost
The per-user license feels painless, but it runs indefinitely and climbs with headcount. Here are the 2026 ranges.
| Software type | 2026 price / user / month | Note |
|---|---|---|
| Standard CRM | 25 – 80 EUR | By features |
| Project management | 8 – 20 EUR | Per seat |
| HR / payroll | 6 – 15 EUR | + modules |
| Support / ticketing | 15 – 60 EUR | Per agent |
| Light SMB ERP | 30 – 100 EUR | Per user |
For 20 users at 50 EUR/month, the SaaS costs 12,000 EUR/year, i.e. 60,000 EUR over 5 years — not counting annual price hikes (often 5–10%) and paid modules added along the way. The SaaS strength: zero maintenance, continuous updates, vendor-managed compliance.
Custom: investment and break-even
Custom development is a one-off followed by moderate maintenance. Let's compare both TCOs.
| Item | Off-the-shelf SaaS (20 users) | Custom |
|---|---|---|
| Initial cost | 0 EUR | 30,000 – 90,000 EUR |
| Annual recurring cost | 12,000 EUR | 15–20% of build (maintenance) |
| 5-year cost | ~60,000 – 72,000 EUR | ~55,000 – 130,000 EUR |
| Process fit | Partial | Total |
| Vendor lock-in | High | None |
The switch threshold depends on your user count and how specific the need is. Below 15–20 users on a standard need, SaaS wins handily. Beyond that, or if the need is differentiating, custom can become more profitable — especially if the "almost-fits" SaaS costs you hours of workarounds each week. Quantify that hidden cost: 5 h/week lost at 40 EUR/h is 10,400 EUR/year of invisible friction.
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Mini case study
Marc, IT director of a 45-person industrial SMB in Dublin, is torn over his production-tracking tool. A generic SaaS at 45 EUR/user/month for 25 users costs 13,500 EUR/year, i.e. 67,500 EUR over 5 years, but covers only 70% of the need: his teams lose 6 h/week to re-keying (about 12,500 EUR/year of friction). A custom build is quoted at 58,000 EUR + 10,000 EUR/year maintenance, i.e. 98,000 EUR over 5 years, but covers 100% of the process and removes the friction. Over 5 years, SaaS + friction reaches 130,000 EUR versus 98,000 EUR for custom: custom breaks even from year 4, while freeing his teams.
FAQ
When should you prefer off-the-shelf SaaS? For any standard, non-differentiating need: email, accounting, HR, generic CRM. You get economies of scale and shared maintenance with no build risk.
Is custom really cheaper long-term? Only beyond a certain user count or if the need is specific. Always run the 5-year TCO including the friction cost of the "almost-fits" software.
Can you mix both approaches? Yes, and it's often optimal: off-the-shelf SaaS for support functions, custom for your differentiating core. You connect it all via API.
How do you quantify the "almost-fits" cost? Measure hours lost to workarounds, re-keying and manual exports, multiply by the loaded hourly cost. That figure, often 8,000–15,000 EUR/year, tips many decisions.
Does custom lock me into a vendor? No, if you require code ownership, full documentation and a standard stack. You stay free to take over or switch vendors, unlike proprietary SaaS.
Let's scope your project. Describe your business need, user count and the SaaS you're considering, and we'll compare the 5-year TCO of SaaS vs custom and recommend. 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.
