Almost every organization with computers and people who use them should have a Chief Information Officer, aka CIO. However, a full-time CIO may not be a good fit for your company size, number of users, technology use, budget, and goals really determine the needs of a CIO. So, I ask, how and when does a company decide on hiring a Fractional CIO v. In-house CIO?
As mentioned above, there are many factors. From my experience, once a company reaches 20+ users, they need a CIO, whether fractional or in-house. The number of employees is not relevant – it’s the number of technology users. My experience also tells me that a company with 100+ technology users and revenue north of $4 million + per year should consider an in-house CIO. So, by definition, a Fractional CIO would best serve a business with 20-100 users.
Costs & Benefits
I have another piece of helpful information for a business owner to consider when choosing between a Fractional CIO v. In-house CIO. A full-time in-house CIO gets paid approximately $130,000 – 170,000 per year. Add in benefits and other costs, and this is a significant investment. On the other hand, a Fractional CIO is more affordable – being paid on an hourly basis or a monthly retainer. For the company, this decision indeed rests upon a cost/benefit analysis.
Clearly, the Fractional CIO is more cost-effective. However, the job function is the same as an in-house CIO. Historically, a highly technical CIO oversaw the information technology department’s resources and staff. Recently, CIOs themselves rewrote the perception of their role, coming out of the back office to become true strategic business partners, working alongside their C-suite peers. Today, CEOs look to the CIO to drive innovation and revenue-generating ideas throughout the business.
A good Fractional CIO serves this role. They also control technology costs, planning, budgeting, strategy, and third-party oversight.
The decision is in your hands. How will you solve the Fractional CIO v. In-house CIO question? The correct answer is what works for you. C-Level executives and business owners should not make technology decisions without possessing the requisite knowledge. Simply relying on IT providers and vendors is not a good idea as they may not have your best interests in mind or fully understand your business goals.
Let’s talk about your needs. I am happy to discuss your situation at no cost or obligation.
