The verdict in three sentences
For a Madrid recruitment firm with 8 to 30 consultants, a generic SaaS ATS costs EUR 80 to 150 per user per month and forces workarounds as soon as you do executive search. A custom ATS priced at EUR 30,000 to 70,000 excl. VAT, delivered in 3 to 5 months, builds in pipelines per assignment, CV parsing and a client portal. Above 12 consultants, the break-even point sits around 24 months, driven mainly by more placements.
SaaS or custom: what a Madrid firm actually pays
Market ATS platforms (Bullhorn, Recruitee, Crelate, Manatal, Teamtailor) are solid for an HR team posting job ads. A firm that headhunts scarce profiles, bills on placement and runs 40 live assignments needs something else: a proprietary talent pool, outreach history, replacement guarantee tracking and per-consultant commissions.
| Cost item (2026 order of magnitude) | Generic SaaS | Agency-focused SaaS | Custom ATS |
|---|---|---|---|
| Licence per user per month | EUR 80 to 110 | EUR 120 to 150 | EUR 0 |
| Annual cost for 15 consultants | EUR 14,400 to 19,800 | EUR 21,600 to 27,000 | Hosting EUR 2,400 to 4,800 |
| Initial setup | EUR 1,500 to 5,000 | EUR 5,000 to 15,000 | EUR 30,000 to 70,000 excl. VAT |
| Annual evolutive maintenance | Included, no priority | Included, vendor roadmap | EUR 4,500 to 10,500 (15% of build) |
| Pipeline per assignment and search stages | Partial | Yes, fixed | Yes, your method |
| Client portal with annotated shortlist | Rare | Paid add-on | Included |
| Ownership of data and code | No | No | Yes |
Over 5 years, for 15 consultants, an agency-focused SaaS costs about EUR 120,000 to 150,000. A EUR 50,000 build plus EUR 7,500 annual maintenance and EUR 3,600 hosting comes to roughly EUR 105,000, with a tool that follows your method rather than the reverse.
The feature scope that matters in headhunting
The gain does not come from the interface, it comes from removing re-keying and cutting qualification time. Here is the typical scope we quote for a Madrid firm.
| Module | Content | Estimated effort | Gain observed at equipped firms |
|---|---|---|---|
| CV and LinkedIn parsing | Automatic extraction, deduplication, skill tags | 8 to 12 days | 6 to 8 min saved per profile |
| Pipeline per assignment | Custom stages, follow-ups, scoring | 10 to 15 days | 20% fewer lost candidates |
| Client portal | Shortlist, interview notes, online approval | 8 to 12 days | Client feedback from 5 to 2 days |
| Semantic talent pool search | Search by skill, sector, mobility | 6 to 10 days | 30% of assignments filled from the pool |
| Billing and commissions | Placement fees, retainers, guarantees | 6 to 9 days | Month-end close in 1 day instead of 3 |
| GDPR compliance | Consent, 2-year retention, purge | 3 to 5 days | Documented data protection risk |
| Executive dashboard | Revenue per consultant, conversion rates | 4 to 6 days | Reliable weekly steering |
At a day rate of EUR 550 to 650 excl. VAT, these 45 to 69 days explain the EUR 30,000 to 70,000 range. A useful first version (parsing, pipeline, portal) can go live in 10 to 12 weeks, with the rest in monthly releases.
Mini case study
Lucía, founder of an IT and engineering search firm in Madrid, employs 14 consultants. She pays a SaaS at EUR 135 per user, or EUR 22,680 a year. Each consultant makes an average of 9 placements a year at EUR 14,000 in fees, for EUR 1,764,000 in annual revenue.
The custom project is quoted at EUR 52,000 excl. VAT, delivered in 4 months, with EUR 7,800 maintenance and EUR 3,600 hosting per year. Licence savings reach EUR 11,280 a year. If placements rise 15% for only half the team (7 consultants, +1.35 placements each), extra revenue is about EUR 132,000 a year. Even taking a 20% net margin on that extra, EUR 26,400, plus licence savings, the project pays back in under 18 months, and in about 26 months in the cautious scenario where placements only rise 7%.
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FAQ
How much does a custom ATS cost for a 10-consultant firm?
Budget EUR 30,000 to 40,000 excl. VAT for a scope focused on parsing, pipelines per assignment and a simple client portal. Maintenance then runs about 15% a year, EUR 4,500 to 6,000.
Can we migrate data from our current ATS?
Yes, nearly all ATS platforms export candidates, assignments and attachments as CSV or via API. Migrating 20,000 to 80,000 profiles usually takes 5 to 8 days of work, deduplication included.
How long before consultants use it daily?
A V1 is in production in 10 to 12 weeks, then billing and dashboard modules follow within 6 weeks. Team training fits into 2 half-days.
How do we handle GDPR on a candidate pool?
The tool records the legal basis and consent date, alerts before the 2-year retention limit and purges automatically. This module takes 3 to 5 days to build.
Is custom worth it below 8 consultants?
Rarely: under 8 users, SaaS licences cost less than EUR 13,000 a year and payback exceeds 36 months. A well-configured SaaS remains the right choice.
Let's scope your project. Send us your headcount, your search stages and your current ATS: we will return a scope, an indicative budget between EUR 30,000 and 70,000 excl. VAT and a phased plan. 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.
