The verdict in three sentences
Over 3 years, off-the-shelf legal SaaS costs a 15-seat firm roughly CAD 40,000 to 85,000 in licences and add-ons, while custom software runs CAD 60,000 - 150,000 upfront plus 10-18 % maintenance. Off-the-shelf wins on entry cost and speed; custom wins on process fit and freedom from vendor lock-in. The tipping point: the cost of impossible customisations and re-keying.
Total cost of ownership (TCO) over 3 years
The monthly per-seat licence hides the real cost: add-ons, connectors, upgrades and chargeable customisations.
| Item (15 seats, 3 yrs) | Off-the-shelf | Custom |
|---|---|---|
| Licences / development | CAD 27,000 - 54,000 | CAD 55,000 - 130,000 |
| Setup / scoping | CAD 1,500 - 5,000 | included |
| Customisation | CAD 6,000 - 20,000 | included |
| Connectors / API | CAD 4,000 - 12,000 | included |
| Maintenance | included | CAD 12,000 - 30,000 |
| Data migration | CAD 4,000 - 12,000 | CAD 4,000 - 12,000 |
| 3-year total | CAD 40,000 - 85,000 | CAD 75,000 - 172,000 |
The criteria that tip the balance
Beyond price, five factors decide: process fit, vendor lock-in, speed of change, code ownership and migration risk.
| Criterion | Off-the-shelf | Custom |
|---|---|---|
| Entry cost | Low | High |
| Process fit | 60 - 80 % | ~100 % |
| Vendor lock-in | High | Low |
| Changes | Vendor roadmap | On demand |
| Code ownership | No | Yes |
| Timeline | 2 - 6 weeks | 4 - 6 months |
Mini case study
A 22-lawyer firm in Montreal pays CAD 60/seat/month on its current SaaS, i.e. CAD 15,840/year, plus CAD 9,000/year in customisations and connectors, i.e. CAD 24,840/year (~CAD 75,000 over 3 years). Custom at CAD 120,000 looks pricier, but with no recurring per-seat licence or re-keying it saves ~CAD 17,000/year from year 2 and becomes cheaper than SaaS from the 6th year — while removing vendor lock-in.
FAQ
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Is custom always more expensive than SaaS?
Short term, yes, on entry cost. Over 4-6 years the gap narrows because custom has no per-seat licence that climbs with headcount.
What is the vendor lock-in risk?
With SaaS you depend on the roadmap, price rises and vendor terms. Custom makes you the code owner and free to evolve it.
Is data migration risky?
It is the sensitive item in both cases: budget CAD 4,000-12,000 and a tested cutover plan. Good scoping strongly reduces the risk.
Can we keep SaaS in production and add custom?
Yes, often the best approach: SaaS stays the engine while custom orchestrates workflow and reporting via API.
At what size does custom pay off?
Generally beyond 15-20 seats, or earlier if your processes are too specific for the standard product.
Let's scope your project. Send us your current tool, headcount and real annual cost; we price the compared 3- and 5-year 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.
