Ditch the Homegrown CRM: Why It’s a Money Pit for Your Business

Is your company running on a homegrown CRM? You know… one that’s been stitched together over the years with assorted patches, add-ons, and workarounds?

We like to call these “Frankenstein systems,” and much like Frankenstein’s monster, they start with the best of intentions but often wind up lumbering around unpredictably, scaring employees and sometimes even breaking things.

Custom-built business software might seem like a great idea at first. After all, they’re perfectly tailored to your processes, right?

But maintaining it is another story. Without dedicated vendor support, updates are expensive, integrations are painful, and security is often (usually) an afterthought.

At some point, every business has to decide: Do we keep resurrecting a monster or switch to a modern, scalable cloud system that actually works?

The Real Costs of a Homegrown CRM

A homegrown CRM doesn’t just cost money upfront - there are long-term consequences.

Imagine getting a Great Dane puppy.

Adorable?

YES!

But before long, it’s eating you out of the house and home, and you’re sleeping in one small corner of your king-size bed.

Development Never Really Ends 

The thing about custom software is that it’s never truly “done.” Every new requirement means another round of development, testing, and deployment.

And the bigger your company grows, the more your homegrown CRM struggles to keep up, requiring constant patches and workarounds.

Patchwork Fixes Drain IT Budgets

With a commercially supported and modern cloud CRM, updates happen automatically.

But with a homegrown solution?

Your IT team spends their time firefighting instead of innovating, which means higher labor costs and fewer resources available for strategic initiatives.

Technical Debt Grows

Every customization and patch adds complexity, making future updates more expensive and time-consuming.

Over time, these modifications morph into a tangled mess of outdated code, making it harder to integrate new features or scale with business needs.

The Licensing Myth

Many companies assume that creating a CRM from scratch saves money by eliminating licensing fees.

But once you hire developers to build a CRM system, when are they finished? And when does the development team get smaller?

Answer: NEVER!

A homegrown CRM implementation is an endless project, requiring constant tweaks, bug fixes, and expansions.

Meanwhile, Microsoft has thousands of developers dedicated to building, scaling, and securing their products - far beyond what any internal IT team can match.

The reality? Hiring and retaining CRM developers costs far more than licensing a SaaS-based CRM like Microsoft Dynamics 365 Sales.

A single developer’s salary (with benefits) can cost around $140,000 per year.

Multiply that by the team required to keep the system afloat, and you’ll quickly see why homegrown software is like financial quicksand.

Cost Categories and Estimates for a Homegrown CRM System

Security and Compliance: The Silent Threats

When it comes to security and compliance, sticking with a homegrown CRM is like relying on an old password for every account… you assume it’s secure until one breach exposes everything. Without vendor-supported updates and compliance measures, your system remains vulnerable.

Lack of Regular Updates

Cyber threats evolve constantly. A homegrown CRM requires your internal team to track and patch vulnerabilities - something a large vendor like Microsoft handles automatically. Without these updates, your business is an easy target for security breaches.

Compliance Nightmares

Regulatory requirements (like GDPR, HIPAA, and SOC 2) change regularly. Without a dedicated compliance team, homegrown systems often fail to meet evolving standards, leaving your business exposed to fines and legal risks.

The Vendor-Supported Advantage

With Microsoft Dynamics 365, security and compliance updates are built-in, ensuring that your CRM is always up to date so your IT team can finally take a lunch break without an emergency support ticket.

With Microsoft Dynamics 365, security and compliance updates are automatic. No more scrambling to patch vulnerabilities or wondering if your CRM is compliant with the latest regulations. That old homegrown system needs constant babysitting, but Microsoft’s updates roll out seamlessly, like a cell phone that updates while you sleep.

 

Scalability & Integration: The Long-Term Struggles

Your business is growing, but can your CRM keep up?

Homegrown systems often struggle to scale, leading to slow performance, instability, and costly workarounds.

Growth Creates Complexity

The more your company grows, the more stress your homegrown CRM endures. Slow performance, instability, and bottlenecks become the norm. A system that worked for 20 employees can collapse under the weight of 200.

Integration is a Headache

Today’s businesses rely on AI tools, automation platforms, and cloud-based solutions. But homegrown CRMs often struggle to connect with external applications, requiring extensive (and expensive) custom development.

Custom-Built Doesn’t Mean Future-Proof

A system built today may not support the technologies of tomorrow. Investing in a modern enterprise CRM like Dynamics 365 Sales ensures you benefit from ongoing innovations and integrations without needing constant redevelopment.

The Productivity and Talent Gap

Would you hire a plumber to rewire your office?

Of course not. Yet many businesses expect a small IT team to build, maintain, and scale an entire CRM system - something that requires a mix of development, security, and integration expertise.

To bridge the productivity and talent gap, businesses must focus on three key areas:

1. Your IT Team Shouldn’t Be a Software Maintenance Crew

IT should be driving innovation, not stuck in an endless cycle of bug fixes and manual updates.

A homegrown CRM turns IT into a maintenance squad, constantly patching issues instead of implementing new technology that moves the business forward.

Check out our blog Building a Strong CRM Project Team: The Key to Success to learn more.

2. Custom Systems Need Custom Talent

The more customized your CRM, the harder it becomes to find (and afford) developers who can maintain it. As technology evolves, niche expertise in outdated systems becomes scarce.

Ask yourself, “How many AI engineers can we realistically keep on staff?”

3. Configuration Beats Customization

Every update in a homegrown CRM requires coding, testing, and deployment, eating up time and resources.

But with Dynamics 365 your businesses can make major updates in minutes, not months. No coding needed.

 

Why Modern Solutions Make More Sense

If your CRM requires a team of developers just to function, it’s a sign that something’s wrong. Cloud solutions like Microsoft Dynamics 365 offer built-in configurability, automation, and security, without the perpetual development cycle.

Quicker Setup, Lower Costs

Dynamics 365 Sales allows businesses to configure features quickly, rather than build them from scratch.

Continuous Innovation

Microsoft invests billions into AI-driven enhancements, security, and usability. A homegrown system simply can’t compete.

Less Maintenance, More Productivity

Instead of endless patches and workarounds, a vendor-supported CRM comes with built-in support, updates, and training resources.

The Optrua Approach: Making Your CRM Work for You

Still unsure if a CRM is worth the investment? This Microsoft guide breaks down what a CRM is and how it can transform business operations.

At Optrua, we believe your CRM should work for you, not the other way around.

We help businesses implement, optimize, and get the most out of Microsoft Dynamics 365 so they can focus on what really matters: growth and efficiency.

Here’s how:

• Ongoing Optimization – With the Optrua Care Plan, businesses get continuous CRM updates, training, and enhancements.

• Seamless Migrations – We handle the transition with minimal disruption.

• Custom Configuration Without the Hassle – Homegrown CRMs require constant development. Optrua helps you configure Microsoft Dynamics 365 to fit your needs without the complex coding.

A CRM should be an asset, not a liability. Ready to crawl out of the money pit and embrace a smarter solution? Explore Optrua’s CRM Services today.

About the Author

Optrua specializes in optimizing Dynamics 365 CRM and Microsoft Power Platform to enhance customer experience and employee engagement. Using Agile methods and continuous improvement, we're your partner in thriving amidst change.

We offer tailored solutions to help our clients grow and stay ahead of the competition, including CRM, AI, System Integration, Analytics, and more.

Click to learn more about Optrua's Care Plans.