The verdict in three sentences
For a 60-person company stacking 6 dollar-billed SaaS subscriptions that still do not cover its core process, custom software becomes profitable around year 3. SaaS remains the right choice for standard functions (email, general accounting, video calls), custom for the process that differentiates you. Decide on 5-year total cost, not first-year price. Figures below come from our West African engagements (FCFA, with USD at about 600 FCFA), and the ratios apply just as well to a New York SMB.
What a 60-employee company really pays
The CEO of a 60-person distribution company runs a CRM, a project tool, an inventory tool, a forms app, an automation tool and a shared spreadsheet. Each covers 60% of the need, data is copied by hand and the bill tracks the dollar.
| Item | Off-the-shelf SaaS (FCFA per year) | Custom application |
|---|---|---|
| Licences and subscriptions | 3,500,000 to 9,000,000 (USD 6,000 to 15,000) | 0 |
| Initial development | 0 to 1,500,000 (configuration) | 12,000,000 to 25,000,000 (USD 20,000 to 42,000) |
| Maintenance and enhancements | Included, except specific requests | 15% of initial cost per year |
| Hosting | Included | 360,000 to 1,200,000 per year |
| Currency risk | 5 to 10% increases possible | None when billed in local currency |
| Manual re-entry | 10 to 25 hours per week | Near zero after integration |
| Data location | Vendor's servers | Your choice, including in-country |
SaaS vendors raise prices by 5 to 15% per year on average, and every hire adds a seat. An internal application has no per-user cost.
5-year total cost, realistic scenario
Assumptions: SaaS at 7,500,000 FCFA in year 1 with a 10% yearly increase (prices and new users). Custom at 18,000,000 FCFA, maintenance 2,700,000 FCFA per year from year 2 and hosting 600,000 FCFA per year.
| Year | Cumulative SaaS (FCFA) | Cumulative custom (FCFA) | Gap |
|---|---|---|---|
| Year 1 | 7,500,000 | 18,600,000 | SaaS cheaper by 11,100,000 |
| Year 2 | 15,750,000 | 21,900,000 | SaaS cheaper by 6,150,000 |
| Year 3 | 24,825,000 | 25,200,000 | Near breakeven |
| Year 4 | 34,810,000 | 28,500,000 | Custom cheaper by 6,310,000 |
| Year 5 | 45,790,000 | 31,800,000 | Custom cheaper by 13,990,000 (about USD 23,000) |
This calculation ignores saved re-entry hours, which often weigh more than the licences.
When to choose which
Stay on SaaS if your process is standard, if you have fewer than 15 users or if you are still testing your organisation. Go custom if a core process (orders, delivery routes, multi-warehouse stock, distributor relations) is poorly covered, if you pay more than 4,000,000 FCFA (about USD 6,700) per year in licences, or if clients require data to stay in a specific jurisdiction. A hybrid approach works well: keep accounting and email on SaaS and build the business core, connected by API.
Mini case study
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Mr Kouassi runs a 60-employee distribution company. He pays 7,800,000 FCFA per year in licences and his teams lose 18 hours a week to re-entry. He replaces four tools with a 19,500,000 FCFA application. The 18 weekly hours, valued at 3,500 FCFA per loaded hour, represent 3,276,000 FCFA per year. Total annual savings: about 8,400,000 FCFA in removed licences and recovered time, against 3,500,000 FCFA of maintenance and hosting. The project pays back in 4 years, then frees up nearly 5,000,000 FCFA per year.
FAQ
At what SaaS spend should we consider custom?
Above 4,000,000 FCFA (about USD 6,700) per year of licences on the same process, the 5-year calculation is worth doing. Below that, SaaS is usually cheaper.
How long does development take?
Plan 12 to 20 weeks for a 12,000,000 to 25,000,000 FCFA scope, including scoping and acceptance testing.
What if the agency disappears?
Require source code ownership, a Git repository in your name and technical documentation. Another provider can then take over maintenance within 2 to 4 weeks.
Can we keep some SaaS tools?
Yes, the hybrid approach is the most common. Accounting and email stay on SaaS, connected to the business application by API for 1,000,000 to 3,000,000 FCFA of integration work.
Where should data be hosted?
Your choice: US or EU cloud, a local datacenter or a dedicated server. Local hosting costs, as an order of magnitude, 50,000 to 100,000 FCFA (USD 85 to 170) per month.
Let's scope your project. List your current subscriptions and the poorly covered process, and we will compute your 5-year total cost and price an application between 12,000,000 and 25,000,000 FCFA. 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.
