2026-02-18

Build Custom or Buy SaaS? The Playing Field Has Changed

For a long time, the answer was simple: buy a SaaS solution.

Building custom systems took 12–24 months, required teams of 5–10 developers, and carried significant risk. SaaS offered fast implementation, predictable costs, and continuous updates.

But something has changed.

 

Panel talk with Anthropics Guillaume Princens at Techarena 2026
Smart Source at the panel talk with Anthropics Guillaume Princens at Techarena 2026

Mattias Jacobsson
Mattias Jacobsson CEO and Project Manager at Smart Source AB

Why AI Changed the Build vs Buy Equation

For a long time the answer was simple: buy a SaaS solution.

With AI-enhanced development that has changed. Developers can now work faster and smarter than before.

What has shifted?

Custom development used to take a long time:

  • 12–24 months from start to finish
  • 5–10 developers per project
  • High cost for small changes

Today it looks completely different.

AI changes development speed

With AI-enhanced development:

  • MVP ready in 6–10 weeks
  • Full launch in 3–6 months
  • Only 2–3 experienced developers needed
  • Iterations are faster and cheaper

Owning your system – instead of renting it – is a real option again.

SaaS or Custom? It Depends

Choose SaaS when:

  • Your needs are standard (CRM, accounting, HR)
  • You need fast deployment
  • You lack internal technical staff
  • Customization needs are minimal

Choose Custom when:

  • You have many users (licensing gets expensive)
  • The system is business-critical
  • You need many integrations
  • Data ownership matters
  • You want to keep a competitive edge

The hybrid model often works best

SaaS for standard functions. Custom for what is unique.

This reduces risk and keeps control where it matters most.

Cost Comparison Over 4 Years

An organization with 200 users pays:

  • SaaS model: 500 kr/user/month = 1.2M per year = 4.8M over 4 years
  • Custom system: 1–2M upfront + low maintenance = often 30–60% cheaper overall

Nordrest example: Catering app for 5,000 employees. Build time: 1.5 months. Cost: 150k kr. ROI in under a year.

How Developer Roles Change

AI does not replace developers. AI makes them stronger.

Focus shifts from manual coding to:

  • System architecture
  • Security oversight
  • Code review
  • Requirements analysis
  • Business understanding

Is Custom Development Secure?

Yes – with the right processes in place.

AI is a tool, not a security risk. Security, data protection, and compliance are handled the same way as always.

High security requirements work fully with AI-enhanced development.

The Question Is Not If – But How

Old question: Can we build it ourselves?

New question: Is it the right choice for us?

When development speed triples, the cost calculation changes completely.

Want to discuss how this looks for your organization? We can help with a structured analysis.

FAQ

How long does it take to build a custom system today?

MVP: 6–10 weeks

Full production: 3–6 months

It depends on complexity, integrations, and security requirements. Traditionally the same project took 12–24 months.

Is it cheaper to build than to buy SaaS?

It depends on the timeline.

  • Short term (1 year): SaaS is often cheaper
  • Long term (3–5 years): Custom can be 30–60% cheaper

Especially when you have many users, high licensing fees, or business-critical functionality.

How many developers are needed?

With AI-enhanced development: 2–3 experienced developers.

Traditionally 5–10 people were needed for the same work.

Experience and right architecture matter more than headcount.

Is it safe for public sector?

Yes. AI is a tool – not a security risk.

Same requirements apply:

  • Code review
  • Data protection
  • Compliance checks
  • Security architecture

With proper processes fully compatible with high security requirements.

When is SaaS still right?

SaaS works well when:

  • Your needs are standardized
  • Fast implementation is key
  • Customization isn't business-critical
  • You lack internal technical resources

Examples: CRM, accounting systems, HR platforms.

What is a hybrid model?

Combine:

  • SaaS for standard functions
  • Custom for business-critical parts

Minimizes risk. Keeps control where it matters.

Does developer role change with AI?

Yes. From manual coding to:

  • Architecture
  • Security
  • Code review
  • Requirements analysis
  • System design

AI accelerates the pace. Experience determines quality.

Is custom more risky?

Not anymore.

Risk decreased when development got faster. More frequent iterations = less risk.

Today risk is more about requirement clarity than technology.

Want to know more?

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