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Build vs buy TCO

Compare three-year TCO for building an AI team versus buying platform and partner delivery.

Built for CIOs, CTOs and CFOs deciding which layer of the AI stack to own. Includes hiring, attrition and the cost of arriving in production nine months later.

Your inputs

Benchmarks show typical enterprise ranges — override every field with your own numbers.

8

AI/ML engineers, data engineers, MLOps and product

Benchmark: 6–12 for a first production AI platform team

Benchmark: $160k–$230k in US metros

22%

Recruiting, agency fees and ramp, as a share of salary

Benchmark: 18–28% of first-year salary

18%

Drives re-hiring cost and lost productivity while roles are open

Benchmark: 15–25% for AI engineering roles

Compute, inference, observability, vector storage, security tooling

Benchmark: $150k–$400k at production scale

Bought path: CCaaS/AI platform subscription and consumption

Benchmark: $300k–$800k enterprise-wide

Implementation and enablement; assumed to fall to 35% in years 2–3

Benchmark: $500k–$1M for a scoped program

14

Benchmark: 12–18 months including hiring

5

Benchmark: 4–7 months with an experienced partner

Use the output of your Contact Center AI or Agentic AI model

Benchmark: Pull from your ROI calculator result / 12

Annualised advantage of buying
$1,650,528

Three-year advantage of the bought path over the in-house build, expressed per year. Negative results favour building.

Build — 3-yr TCO$5,871,584
Buy — 3-yr TCO$2,540,000
Value lost to slower build$1,620,000
3-year advantage of buying$4,951,584
Simple payback5.1 months
Share & export

Directional estimate over a three-year horizon. Assumes partner delivery falls to 35% of year-1 cost in years 2–3, and that attrition costs 25% of a loaded salary in lost productivity per departure.

Three-scenario view

Finance reviewers expect a range. These scenarios flex adoption and implementation cost around the model you entered.

Conservative
$1,319,656
7.6 mo payback

Slower adoption, higher integration effort

Base caseYour inputs
$1,650,528
5.1 mo payback

Your inputs as entered

Aggressive
$1,795,195
4.2 mo payback

Strong sponsorship, clean data, phased scale-up

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Send us the brief and a delivery lead validates these assumptions against your data, then replies with indicative scope, timeline and commercial options.

CalculatorCompare three-year TCO for building an AI team versus buying platform and partner delivery. — routed to this team

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How enterprise leaders use this model

What does this model compare?
Three-year total cost of ownership for an in-house build — engineers, hiring, attrition, infrastructure and run — against a bought platform plus partner delivery, adjusted for the value of getting to production sooner.
Why include time to value as a cost?
Every month before production is a month of unrealised benefit. The model charges the delay difference between the two paths against the slower option, which is usually the in-house build.
Is hybrid an option?
Almost always. Most enterprises buy the platform and orchestration layer and build the differentiating logic and data products in-house. Model both extremes first, then decide which layer you actually want to own.
How do we account for attrition?
AI engineering attrition runs high in competitive markets. The model reloads a share of hiring cost each year and prices the productivity gap while roles are backfilled.
How this calculator works

Should we build an in-house AI team or buy a platform and partner?

Compare three-year TCO for an in-house AI build — hiring, salary, attrition, ramp, infrastructure and opportunity cost of delayed value — against platform licence plus partner delivery. Time to value is the decisive variable: every quarter of delay carries the full benefit the deployment would have produced.

Ungated — results appear instantly, no email required.

What you enter

  • Target in-house team size and blended salary
  • Hiring lead time, ramp time and annual attrition
  • Infrastructure and tooling cost
  • Platform licence and partner delivery cost
  • Monthly benefit the deployment produces once live

How it is calculated

  1. 1.Model in-house cost across three years including hiring, ramp and attrition replacement.
  2. 2.Model platform plus partner cost across the same period.
  3. 3.Estimate time to first production value under each path.
  4. 4.Charge the slower path the benefit forgone during the delay.
  5. 5.Compare total three-year cost including that opportunity cost.

What you get back

  • Three-year TCO for each path
  • Time to first production value
  • Cost of delayed value
  • Recommended path with the crossover assumptions made explicit

Built for: CIOs, CTOs and finance leaders deciding how to resource an AI programme.

When does building an in-house AI team beat buying?

When the capability is a durable differentiator, volume is high enough to amortize the team, and you can hire and retain scarce skills at the assumed salary. For a first production deployment on a schedule, the delay cost usually decides against it.

Why include opportunity cost in a build-versus-buy model?

Because the two paths reach production at different times. A cost-only comparison silently gives the slower path free months, which is exactly the error that makes in-house builds look cheaper than they are.