Skip to content
ERP

Custom ERP or Off-the-Shelf SaaS? A Cost-Benefit Analysis

1 min read
Custom ERP or Off-the-Shelf SaaS? A Cost-Benefit Analysis

"Should we buy Salesforce or build our own CRM?" is the question we hear every quarter. The honest answer: it depends on three things — and none of them is "what's cheaper upfront".

The real comparison

FactorOff-the-shelf SaaSCustom build
Upfront costLow (₹0–5L)High (₹15–50L)
Time to first value2 weeks4–9 months
Long-term costCompounds (per-seat)Stable after launch
Fit to processYou bend to the softwareSoftware bends to you
Competitive advantageNone — competitors use it tooYes — if your process is unique
Vendor lock-inHighZero

The decision rule

  1. If your process follows industry standard → buy SaaS. Don't reinvent CRM for a 10-person sales team.
  2. If your process is your competitive moat → build custom. A logistics company whose routing algorithm is unique should not run on a generic TMS.
  3. If you're at scale (500+ users) → the math usually tips toward custom. At ₹2,000/seat/month, a 500-user SaaS license is ₹1.2Cr/year forever. A ₹40L custom build pays back in 4 months.

Hybrid approach we often recommend

Buy the boring parts (accounting, HR, email), build the strategic parts (the workflow that makes you unique), and glue them with APIs. It's usually the right answer — and it's what we specialize in.

Share this article

Need help applying this to your business?

Talk to the engineers who wrote this — no sales pitch, just technical answers.