A Chief Technology Officer (CTO) is a vital part of today’s business world. They help companies stay on top of the latest technology. They assist firms so they run efficiently and stay on top of the competition.
However, hiring a CTO can be expensive and time-consuming. It is for this reason that many companies choose to use a fractional CTO instead. This article will review the duties of a CTO and why a third-party company may be the way to go.
What Does a CTO Do?
Let’s begin by reviewing the duties of a CTO. Here are some responsibilities they may handle:
- Work with technology teams on daily tasks
- Develop technology strategies that help the company move forward
- Monitor the company’s software, hardware, licenses, and databases
- Determine if the current software is suited to company needs and make recommendations for updates if necessary
- Stay on top of technology trends to ensure the company is equipped with the latest
- Review products and systems to ensure they are suited to company needs
- Work with the CIO or CEO to determine if systems are contributing to the company’s success
- Ensure privacy and security standards are enforced in the software being used
Why Finding a Fractional CTO Helps Meet Your Needs
A CTO can play a valuable role in a company, but hiring a CTO can cost businesses a lot of money and is a time-consuming process.
Many companies choose to work with fractional CTOs instead. This is a third-party company that provides CTO advice as needed. Here are some reasons you may want to consider this path instead of hiring someone full-time.
Cuts Back on Payroll
Payroll is one of a company’s biggest expenses. In addition to paying your employee, you must also pay social security and Medicare taxes to the government. When you hire a third-party company, you don’t have to pay any taxes. You pay for your services only.
Pay Only for What You Need:
When you hire a CTO, you will typically pay them for a 40-hour workweek, and you must think about how much money is going towards CTO duties. Companies often deal with downtime from CTOs and other employees, they may start allocating work that could easily be taken care of by someone making half the salary.
When you work with a third-party company, you pay for only the services you need. You don’t have to compensate staff for additional duties or downtime.
No Dealing with Turnover
Turnover is a difficult situation for companies to deal with. It puts them in a position where they need to put hiring over other pressing tasks. It is a time and money-consuming undertaking. Not having staff on hand also causes setbacks.
When you work with a third-party company, you know they will always be there for you. It will be their responsibility to deal with turnover. You will never find yourself scrambling to find new employees.
What to Look for in Fractional CTO Companies
It’s vital to find a fractional CTO company that suits your needs. Here are some things to look out for:
- Bespoke Services:
The company should offer bespoke services to suit your needs. They should have experience designing scalable software architecture that assists you in developing new apps or systems.
- Team Management:
CTOs often take on management roles with your engineering, development, cloud, and networking teams. Your CTO company should have team management experience that foots the bill.
- Software Support:
The company should offer software support including integration, training, and troubleshooting services.
- Technical Due Diligence:
Technical due diligence will be necessary if you are buying or selling a company. Your CTO team should be able to help you identify risks, so you are prepared for mergers and acquisitions.
- Experience in Your Field:
It’s wise to find a CTO company with experience working in your industry. This type of expertise ensures they will find solutions best suited to your needs.
Fractional CTOs may not be the best solution for every company, but it’s a great solution for those that don’t require ongoing support. Research carefully to determine if it’s the best solution for you.