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Our approach7 August 20266 min read

Custom business software development: what does it cost?

Having custom business software built in the Netherlands costs between €25,000 and €250,000 for a typical SME project, and a fully featured core system tends to sit toward the upper end of that range. That bandwidth means little without context: the real question is what you get back, and who you trust to build it with you. Below you will find a clear framework for estimating costs, knowing when custom development pays off, and identifying the signals that distinguish a reliable partner.

By Yeslin Beljaars

What does custom business software development cost in the Netherlands?

A straightforward portal or module starts at around €15,000 to €30,000. A fully operational system, such as a TMS, WMS or ERP that drives your daily logistics or production, quickly lands between €80,000 and €250,000 for the first version. Projects that combine multiple integrations, complex business logic and user roles can exceed that range. Dutch development teams typically charge between €90 and €160 per hour. A project of 800 hours already runs to €80,000 to €130,000 in pure build time, before design, project management and testing. Nearshore teams in Eastern Europe or Portugal charge €30 to €50 less per hour, but they require more coordination and oversight on the Dutch side, which claws back a portion of that saving. Always budget an additional 15 to 20 percent per year on top of build costs for maintenance and ongoing development. Software that is finished on day one quickly becomes outdated; a €100,000 system therefore requires €15,000 to €20,000 per year to keep it functional and scalable.

When do you recoup the investment?

The payback period depends on what the system replaces. A concrete example: suppose you have two employees who together spend 30 hours a week manually entering orders, preparing packing lists or processing invoices. Two FTE in a back-office role costs, including employer contributions, roughly €65,000 to €75,000 per year. A system that takes over that work and costs €100,000 to build pays for itself in 16 to 18 months, before accounting for annual maintenance. If you are also saving on licences for a standard package, count those in as well: package software for ten users can easily cost €8,000 to €15,000 per year in licences alone. The payback period worsens when scope grows during the build, when integrations prove more complex than estimated, or when the team lacks sufficient development budget after delivery. Custom development is most worthwhile when your processes are genuinely unique, when standard packages are routinely bypassed with workarounds, or when you intend to scale on top of this system.

How do you recognise a reliable partner?

Reliability accounts for half of the buying decision, yet almost no one addresses it concretely. Look at three things. First: references in your sector. A party that claims to build custom software for logistics, construction or industry should be able to name clients and results. Call those references yourself and ask three questions: did the builder stay within budget, how did the delivery go, and who maintains the system now? Second: ownership of code and data. Serious partners hand over the complete source code and data exports after delivery. If a party is vague about this, or if the system only runs on their infrastructure with no exit path, there is lock-in built into the contract that will cost you later. Third: a working method with go/no-go milestones. Partners who fix everything in a single price for a large project often transfer risks onto paper that they later recover through change requests. Sound projects work in phases with interim evaluation points, giving you as the client a clear decision at each stage.

Three red flags in a quote

Watch for these three signals when comparing quotes. One: a fixed price without a detailed specification. If a party names a price before you have jointly documented the processes, integrations and user requirements, that figure is a guess that will return as a change request later. Two: no clarity on who maintains the system after delivery. Some agencies deliver and disappear; others build a dependency through proprietary frameworks or hosting arrangements. Always ask who holds the knowledge and what it costs to switch. Three: no portfolio of comparable projects. Building business software for a transport operator is fundamentally different from building a web application. If a party offers generic custom work without sector knowledge, you are paying for their learning curve.

When is Bonsai the right fit, and when is it not?

Bonsai Software is a Software Operating Partner based in Rotterdam. We build domain-specific core systems, ERP, TMS, WMS, for sectors including logistics, port operations, food, construction and industry, built entirely from scratch and with AI at the core. We work with milestones and go/no-go decision points; the client takes ownership of the code. That is the right fit when you need an operational core system that outperforms the standard package you are currently working around. It is not the right fit when you need a small module or a web portal that connects to an existing package, or when your budget for the first version is below €50,000. For situations where the core system is adequate but the surrounding processes create friction, we build AI Workers as a layer on top of existing systems. Giving honest advice when we are not the right fit is part of how we work.

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Frequently asked questions

What does custom business software development cost in the Netherlands?

For an SME project, you should typically budget between €25,000 and €250,000, depending on complexity and integrations. A fully operational core system such as a TMS or ERP tends to sit in the upper half of that range. Add 15 to 20 percent per year on top for maintenance and ongoing development.

How long does it take to have custom software built?

A first working version (MVP) of an operational system typically takes an experienced team three to six months. Larger systems with multiple integrations and user roles require six to twelve months. Projects without a clear specification upfront consistently run over schedule.

How do I compare quotes for custom software fairly?

Only compare quotes that are based on the same specification. Check whether the price includes integrations, testing and project management. Always ask about the conditions regarding code ownership, post-delivery maintenance and change requests. A fixed price without detailed elaboration is generally a risk, not a guarantee.

When is custom software better than a standard package?

Custom development is worthwhile when your processes do not structurally fit a standard package, when you are already working around that package with workarounds, or when you want to scale on top of the system. If you have a relatively standard process and a small team, a package will in most cases be faster and less expensive.