Top3 Benefits of Hiring a Fractional Chief Technology Officer

Startups and growing SME businesses need the backing of robust technology to survive and succeed. A CTO or Chief Technology Officer is the leader who provides strategic and operational technology guidance and ensures that the product or services are delivered to satisfy their customers. Although their role is critical to the survival of these new and small companies, they can not afford the salary of a full-time CTO. Hence, the concept of Fractional CTO is gaining acceptance.

What is a Fractional Chief Technology Officer?

A fractional Chief Technology Officer is an experienced technology leader who offers their services on a part-time/ on-demand/ assignment basis to multiple clients.

They can be individuals or firms, similar to a law firm where many lawyer partners cater to multiple clients.

CTO Bridge is one such firm with many CTO partners.

Top 3 Benefits of Hiring a Fractional Chief Technology Officer

1. Drives Tech Strategy and Product Innovation

• A CTO makes critical decisions about the product roadmap and technology selection for product development and ensures product/ service delivery to satisfy the customers. They work along with product owners and project managers to ensure customer delight.
• The CTO needs to be an expert in all new and emerging technologies such as AI (artificial intelligence), blockchain, machine learning, robotics, quantum computing, privacy-enhancing technologies, cyber security, immersive technology, augmented reality, data science, environmentally sustainable technologies, etc.It may not be possible for the in-house CTO to keep track of all the new and emerging technologies that might be required for product or service innovation.
• Hence, it makes sense to hire a fractional CTO specializing in the technology the business needs. 
• A firm of fractional CTOs typically has a network of tech experts from different tech backgrounds with a breadth of technology and industry experience over many years.
• They can offer the tech expertise needed to formulate product strategy and innovation.

2. Offers Outside In Perspective

• A tech startup has a flat organizational structure with a founder CEO who identifies an unmet need and builds the vision for the team, supported by the technology person who translates the founder’s vision into a product/ service. 
• This product manager gets involved in the day-to-day operations and customer deliveries, and often, they don’t get adequate time to devote to continuous product improvement. 
• To excel and ensure consistent value creation for the investors, a technology-oriented startup needs to keep track of newer technologies and competing products in the market. They must do regular product innovation to beat the competition; otherwise, they will face the company valuation going south.
• Here, the outside in perspective of the fractional CTO offers immense help to the founders, promotors, and angel and private equity investors.
• The fractional chief technology officers have vast experience and up-to-date knowledge about suitable technologies, which can help in product/ service improvement.
• Additionally, since these CTO consultants do not report to the founder, they can give strategic advice freely. If required, they can make an unbiased assessment of the technology used by the company and recommend the best solution.

3. Provides Affordable and Scalable Technology Solutions

• Startups and SME businesses (small and medium enterprises) often have limited financial resources and often operate on a budget. They are at risk of compromising on quality to meet the budgetary constraints for almost all areas of the business. For example, they may choose an affordable technology provider, hire a less skilled or inexperienced tech team, or not hire a CTO or CIO at all.
• Compromising on skilled human capital often leads to suboptimal results and product failure.
• Fractional CTO services can be hired at much more affordable rates than recruiting a full-time chief technology officer.
• Set up a call to understand CTO Bridge Services.
• As explained earlier, these fractional CTOs provide immense value at an affordable cost. 
• They work on an on-demand and assignment basis, and hence, their services are also scalable, depending on the business needs.
• If the founder decides to expand the products or enter new markets, the fractional CTOs can quickly add more tech experts to take care of the sudden technology expertise needed for the expansion. An in-house CTO can't take on additional responsibilities since they are busy guiding and ensuring the existing people, product, and project management.

How to Select the Right Fractional CTO?

You need to select the right CTO consultant to receive the benefits, as mentioned earlier, from hiring a fractional CTO for your business.

1. Set Your Expectations Right

• Before looking for a suitable fractional CTO, you, as a founder or CEO, need to define the purpose and clear mandate. If you are unclear about the scope of the services required, you will not be able to gain much from hiring an external leader.
• Remember that the fractional CTO is like a consultant who will help you formulate your technology strategy and guide you in implementation. Still, they do not report to you, and they are not permanent employees. Hence the scope and results of their assignment need to be defined with clarity.

2. Peer Referrals, LinkedIn, and Google Search 

• One way to find a CTO consultant is through referrals from friends and peers who have already used such services.
• LinkedIn is the leading professional network. For example, CTO Bridge is the company's LinkedIn page, which contains information about its employees and their experience. You can find common connections. Companies also share their knowledge through posts and newsletters on LinkedIn.
• Another method to get a list of the possible fractional CTOs is to search Google, visit websites, and fill in the contact form to get a free consultation, which most providers offer.

3. Agree on the Deliverables and Costs

• After identifying possible service providers, you can have online meetings and request them to present their past cases and their proposed approach for your business.
• Before finalizing, you can request a quote and compare the quality and costs with the shortlisted fractional CTO service firms.
• In short, the 3 Cs - clarity, communication, and costs are the three parameters that will help you find the right fit for your business.