The verdict in three sentences
A SaaS HRIS (Lucca, PayFit partner: 6-14 EUR per managed employee/month) is simple to start but its cost climbs linearly with your portfolio of managed employees. Custom software (42,000-90,000 EUR + 550-1,200 EUR/month) covers candidate management, assignments, and payroll/DSN integration, with no per-employee cost. Result: -50% admin time and 200 hours/year saved, with GDPR compliance for HR data built in.
SaaS HRIS vs custom: cost per managed employee
SaaS billed per managed employee is unbeatable at launch but becomes punishing as the firm grows. Custom flips the logic: a fixed cost amortized over a rising volume. Here is the comparison.
| Managed employees | SaaS (10 EUR/mo, over 5 yrs) | Custom (build + support 5 yrs) | Winner |
|---|---|---|---|
| 100 | 60,000 EUR | ~105,000 EUR | SaaS |
| 250 | 150,000 EUR | ~110,000 EUR | Custom |
| 500 | 300,000 EUR | ~115,000 EUR | Custom |
| 800 | 480,000 EUR | ~120,000 EUR | Custom* |
| 1,200 | 720,000 EUR | ~125,000 EUR | Custom* |
*The tipping point sits around 180-220 managed employees. Beyond that, custom is markedly cheaper. 2026 order of magnitude.
Scope and 5-year TCO
Custom makes sense when the firm has its own trade logic (contracting, assignments, client rebilling) that standard HRIS does not cover. Here is a typical breakdown.
| Item | 2026 range (EUR) |
|---|---|
| Scoping + HR GDPR compliance | 6,000-12,000 |
| Candidate + assignment management | 16,000-32,000 |
| Payroll + DSN integration | 10,000-22,000 |
| E-signature + contracts | 6,000-14,000 |
| Client/employee portal | 8,000-18,000 |
| Total build (median) | ≈ 66,000 |
| Monthly support | 550-1,200 |
| 5-year TCO (build + support) | ≈ 105,000-125,000 |
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Mini case study
Ms. Fontaine is a partner at an HR and employee-leasing consultancy managing 420 employees. Her team spends 400 hours/year on admin (contracts, rebilling, DSN). She currently pays a SaaS HRIS at 10 EUR/employee/month, or 50,400 EUR/year (252,000 EUR over 5 years). She invests 66,000 EUR in custom software (+ 900 EUR/month support = 54,000 EUR over 5 years, 120,000 EUR TCO). SaaS savings: 132,000 EUR over 5 years. On top, automation cuts admin by 50% (200 h/year × 60 EUR/h = 12,000 EUR/year). Payback in under 18 months.
FAQ
Does price depend on the number of managed employees? No for custom: fixed cost, no per-employee license. That is precisely the opposite of SaaS, whose main cost driver is exactly that as you grow.
Can you integrate payroll and DSN? Yes. We connect payroll engines (Silae, PayFit) and automate DSN production, one of the main admin-time savings.
How is HR data GDPR compliance handled? Through privacy-by-design: minimization, retention periods, access rights, logging. Compliance is scoped from the start, not bolted on afterward.
What is the delivery time? 12 to 20 weeks depending on scope. A first module (candidate or assignment management) can ship in 8-10 weeks for phased go-live.
When does custom become worthwhile? Around 180-220 managed employees, custom becomes cheaper than per-employee SaaS. Below that, a well-chosen SaaS stays relevant.
Let's scope your project. Share your number of managed employees, current HRIS, and your two heaviest admin tasks — we quote the build, support, and comparative 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.
