Fractional CTO: The Secret Weapon for Tech-Driven Growth

Outsourcing software development has been a known method for years. Not only do enterprises of all sizes and kinds benefit financially, but also strategically. While companies often hire mobile app developers, web developers, UI/UX designers, and other programmers with ease, there is a newer way to outsource the leadership, the CTO. Yes, a Fractional Chief Technical Officer, also known as a Virtual CTO, can be hired to guide companies, especially startups, in technical and business aspects.

In this short guide on ‘what is fractional CTO or Virtual CTO’, we will discuss the definition, benefits of hiring a CTO, and what all you can expect i.e. the roles and responsibilities of a CTO for hire.

When to hire a fractional CTO?

As a startup company, you have many barricades in your way because you are doing it for the first time and on an initial level. Your investment and knowledge are at stake, and you want your new venture to succeed at any cost.

The major investment today for any enterprise or business is setting up the entire digital or IT ecosystem. From managing all company departments to internal and external business operations and from having a mobile application/website and maintaining it requires thorough knowledge of a dozen technologies.

So, ask yourself these three primary questions:

Do you feel a lack of leadership?

This means you struggle to define a clear technology strategy or vision for your business. If you don’t solve this at an initial stage, it will lead to inefficiencies and missed opportunities.

Do you see limitations in resources?

Skill gaps are the biggest hurdles for enterprises, especially startups. If you feel constrained by a shortage of experienced software developers, it will hinder your software project’s scalability and uniqueness. Ultimately, your digitalization and automation will be at risk.

Do you witness a lack of productivity?

Inefficiencies and low productivity of a software development team will only waste your time, money, and resources. You may miss the deadlines which will cost you dearly as you miss newer opportunities and revenue.

Here comes the solution: hire a fractional CTO or hire a virtual CTO. But what is it?

What is a Fractional CTO (FCTO) or Virtual CTO (VCTO)?

A simple definition of a fractional CTO is hiring a Chief Technology Officer who will provide on-demand IT consulting services to your startup or enterprise with their expertise, experience, and insights. Simply put, hiring a virtual CTO through a fractional CTO service is a kind of freelance contract, allowing the CTO to work for a fraction of the time and cost of a software project as opposed to being a full-time employee. Though this position is remote, a fractional CTO service could also offer on-site support in some cases, depending on the company’s requirements.

Who can hire a Fractional CTO?

Anyone who needs technical expertise at the top level can think of hiring a fractional CTO or a virtual CTO. It is like hiring the best technology manager who can perform all the tasks from planning, initiation, design, development, and management of setting up the technical ecosystem at your company.

If you are one of the below-mentioned businesses or companies, you surely need to hire a fractional CTO:

• Startups and SMBs
• Companies in the transitional phase
• Project-specific need for expertise
• Non-tech companies
• Interim leadership
• Companies in remote locations

Business benefits of hiring a Fractional CTO

Business owners can get ample benefits from hiring a virtual CTO; not only do they save a lot of costs but also fill skill gaps and reduce recruitment costs. A fractional CTO is a seasoned player in understanding the market trends and consumer demands of the present time to consider while building the best software solution for your enterprise. Here are some of the known benefits of having a fractional CTO for your startup.

Cost-effectiveness

Having an outsource CTO service is way more affordable than hiring a full-time CTO with a traditional procedure. Small businesses and startups can save loads from their budget.

For instance, the mid-range CTO salary in the US goes up to US $1,850,000 annually excluding equities, bonuses, perks, and other hiring costs. According to Human Resource experts, such perks and hidden costs may bring the annual cost of a full-time CTO to around US $400,000. Furthermore, the annual bonus for CTOs goes up to US $30,000 and average executive hiring costs come to around US $15,000.

Now, hiring a fractional CTO from countries like India would cost between US $120,000 to US $300,000 annually. Additionally, Indian fractional CTOs are also available project-wise and on an hourly basis ranging from US $100-600 an hour.

Experience and domain expertise

When you hire a fractional CTO, you are assured of getting years of experience and domain expertise from them. A virtual CTO has advanced knowledge of technologies and tools in all industry segments and their software solutions. That said, you don’t need to worry about any complexity of big data, cyber security, cloud computing, blockchain integration, and all sorts of complex mobile and web app development.

You can expect CTOs to assist you in implementing a large-scale IT framework and infrastructure to automate your business processes. Also, for instance, for enterprises, the high costs of software development and maintenance can be brought down by the fractional CTO as they can save tons of money because they can identify the inefficiencies and recurring expenses plus they can also negotiate contracts.

Easy sync

Fractional CTOs have the technology skills and experience from working in different fields, so they can easily adapt your company’s tech goals and its operational way. As they are hired because of their technological knowledge, they can start managing your technology-related problems right away without needing to spend time making connections that the normal CTO would. And as a result, they can give you customized software solutions in a quicker way.

More flexibility

FCTOs give more flexibility, meaning businesses can utilize CTO’s time according to their need. This way, expanding businesses can get expert guidance when it is important without spending too much on technology when things are slow. For example, a growing online platform might hire a fractional CTO to refurbish its website, and then lessen their hand once the job is done.

Multidimensional inputs

Hiring a fractional CTO who is not part of your company’s regular team can give fresh and unique ideas for your present tech plans. This is important because sometimes companies can fall into the same pattern of thinking and planning all the time due to monotonous ways. For instance, if your software development team is taking too much time in developing software products, a fractional CTO can take an extensive look at how things are been done and suggest new technology methods you might not have thought of before.

What are the roles and responsibilities of a fractional CTO in routine?

Enterprises that have hired fractional CTOs should leverage their expertise in technical know-how, cost-effectiveness, risk mitigation, and team management. Here are some of the common roles and responsibilities of the FCTO.

Developing strategies for technology

To work with the company’s leaders and build strategies for a technology roadmap aligned with organizational goals.

Team management

To oversee the software development team by fostering cooperation and collaboration to move towards the execution of the project successfully.

Technical leadership

To provide input and guidance to build technical architecture and take responsibility for the entire digital ecosystem.

Technology evolution/integration

To assess and recommend suitable tech tools and third-party integrations to pave the way toward long-term goals.

Vendor and stakeholder management

To collaborate with potential external vendors, stakeholders, and partners to forge long-lasting tech partnerships.

Tech compliances

To ensure tech infrastructure and practices comply with mandatory regulatory standards and set of rules defined by authorities.

What you shouldn’t expect from the Fractional CTO?

If fractional CTOs can do wonders for your enterprises with their capabilities, there are some limitations as well. You should not expect a few things from this marvelous resource being external. Knowing these limitations will help you plan your enterprise business operations accordingly.

Full-time availability

Fractional CTOs are hired, as the name suggests, for a fraction of a software project or operation. That said, they won’t be available for you all the time unless you continue to keep them.

Long-term commitment

The roles and responsibilities of the fractional CTO are meant to be fractional as they focus on a specific project/operation for the time being. Though their strategies may have a long-term impact.

Direct technical execution

Virtual CTOs do have expertise in carrying out technical projects, but they aren’t directly involved in programming.

Sole decision-making

Fractional CTOs are a perfect aid to your company’s authoritative bodies, but they are not the sole decision-makers. You need to make a consensual decision.

Non-technical inputs

For the sake of business relationships, a fractional CTO may provide their inputs in non-technical fields such as marketing and sales; however, they aren’t bound for that.

On-site presence

Unless you have a contract to hire a fractional CTO on-site, you cannot expect them to be at your premises as and when needed. Most CTOs work remotely and act as virtual CTOs when hired.

How much does it cost to hire a Fractional CTO?

The fractional CTO cost depends on your project needs and the CTO’s origin. When you hire a virtual CTO from India, the engagement cost will range between US $120,000 and US $300,000 annually.

Mobile and web app development companies in India also have an option of premium staff augmentation under which, the fractional Indian CTOs are available for specific projects and on an hourly basis that may cost you US $100-600 an hour.

Hire a fractional CTO for your enterprise now

WeblineIndia cultivates a community of fractional CTOs so they can be made available for their expert services on demand. Hiring virtual CTOs from WeblineIndia assures you that you scale your enterprise, especially startup in the right direction with the right resources and strategic planning. Whether you want to take calculated risks or play safe in automating your organizational operations full-fledged; hire a fractional CTO with more than two decades of experience in serving IT services to SMEs and MNCs in the US, the UK, Australia, Canada, India, and elsewhere in the world.