CTO as a Service (CaaS)
CTO-as-a-Service or CaaS is an avenue where companies can employ third-party CTO consulting services. CaaS enables companies to still harness the skills and experience when they hire a virtual CTO but at a more manageable cost, paying only for the services they need.
Types of CTO Services
CTO as a service is not a one-size-fit-all solution. CTO-as-a-Service providers are able to help businesses and organizations identify the type of CTO service they need. There are 4 major types of CTO services available in the market:
- Full-time CTO services provide dedicated resources and expertise in helping your organization address technological issues. Having a full-time CTO consulting services provider onboard ensures that technical issues, plans, and technological processes are discussed and managed proactively in real-time.
- Fractional CTO services are focused on specific areas of technological issues or processes, and share responsibilities with the in-house experts in addressing these issues and processes. Startups and Small-to-Medium businesses would find Fractional CTO services providers most helpful in ensuring timely and effective development and troubleshooting issues and processes.
- Part-time CTO services can be construed as a hybrid of full-time and fractional CTO services; part-time CTO services cover all the responsibilities but only for part of the time. Employing part-time CTO services enable you to acquire the skills and services needed to address technical issues and processes for only certain necessary timeframes, without the burden of thinking how to sustain such service all the time.
- Interim CTO Services are employed by organizations during transitional periods in between hiring a new CTO to replace your old CTO. Providers of such services ensure that your technological processes and issues are still handled during this period and also help with your hiring strategy for a new CTO.
What Makes a Great CTO-as-a-Service
But how would you know if the CTO service you are employing is effective? What are the features and functions of a must-have CTO service? The scope and approach of a CTO service significantly impacts a business or organization, so it is essential to know what to expect of such a service.
Great CTO consulting services can:
- Design software architecture and the system of tools and processes that best fit your needs.
- Design and present to potential investors and partners technological strategies and technical implementation plan.
- Participate in and manage organizational products and production roadmaps.
- Support, nurture, manage and hire tech talent for organizations.
- Design, plan and oversee quality control and quality assurance tests and troubleshooting.
Why companies do not employ outsourced CTO services:
- Not all businesses or organizations can afford to hire such an executive service. Businesses such as startups or more compact organizations that have limited budget and number of personnel would do away with employing such services.
- Having a CTO onboard or on-hand is not necessary for a successful venture to the tech market. Companies such as Snapchat, Lyft, Youtube, and SlideShare found success with non-technical executives and founders.
- The current company or organizational structure is already able to handle the work of CTOs, therefore no longer necessitating the CTO advisory services.
When You Should Hire CTO Consulting Services
There are several cases where organizations have found CaaS or CTO as a Service helpful for their organizations.
- Having an idea for an app, a tool, or a computer-based system for the organization but not having the technical skills available to make it a reality.
- A business-oriented organization or company that branches out or explores potential integration of technology into your products and in need of hashing out details and plans to be presented to the organizational committees or prospective investors.
- Having outsourced a product or app development, but need technical skills to evaluate in-depth their work.
- Your current organizational tools and processes or tech products need to be improved or upgraded to match the current market needs.
- You do not require a full-time or in-house CTO as of yet and are looking for ways to cut operational costs and maximize the flexibility of your personnel.
- You need an independent and unbiased advice or review of tech processes and issues.
What to Look for When You Hire Virtual CTO Consulting Services
Knowing what to expect with a CTO service does not necessarily translate to the actual CTO or person that the business or organization will directly work with. It is also important to set a standard for the type of CTO personnel that will eventually be hired to work with the business or organization. What do you need to look for in a virtual CTO provider?
- Organizational familiarity and understanding. Outsourced CTO services providers need to be in line with the mission, vision, and goals of the businesses to have a productive professional relationship geared towards achieving the goals of the organization.
- Openness to change and technologically forward-thinking. Technology and our consumption and utilization of technology constantly changes and evolves. Having a great understanding and expert skills in adapting the modern and latest technology into business processes is highly recommended, but it would be even better if they can adopt changing technology and technical trends effectively.
- Having a realistic and balanced approach to technology adoption. Adopting technology can be expensive and more trouble than it is worth. CTO services providers should be able to weigh the necessity of adopting technology or a technological process versus the cost and financial impact of such a change and come up with a plan that most benefits the organization.
- Extensive work experience and technological knowledge. CTO is a high organizational position that requires comprehensive work experience as a certified chief technology officer. A CTO services provider needs to have knowledge of past, current, and potential technological trends and how to adapt them to solve real-world issues.
- Capacity to design and develop business and technological plans. CTO consultants need to have the skills to not only focus on solving technical issues but also aim to support your organization in designing, developing, and implementing a technological plan that can enhance your organization and its processes.
How Much Does CTO-As-a-Service Cost?
A great benchmark for estimating how much CTO consulting services can cost is to look at average annual CTO salaries. Below is a table showing the average salary of CTO across various countries worldwide, according to Payscale.
- The US – $159,551
- The UK – £81,300 ($101,000)
- Switzerland – 162,600 Fr. ($169,900)
- Poland – 225,000zł ($54,400)
- Ukraine – ₴416,400 ($15,400)
The figures above illustrate that CTO services in countries such as the US and Switzerland are all high-paying, above $100,000 per year, and can be costly. This shows that it would be most cost-effective to narrow your searches for remote CTO services to countries like Poland and especially Ukraine.
Why Outsourced CTO Services Best Fit Your Current Needs
Hiring CTO managed services may be among the most helpful steps that companies can take in addressing tech issues or strategy development. Great CTO advisory services can support companies in developing effective and high-quality software development.
As per our cost benchmark, Ukraine shows to be the country with the most cost-effective CTO services salary. This is in no way an indicator of low-quality work. Ukraine is home to numerous expert and highly-skilled tech professionals as well as a great number of high-quality outsourced CTO services providers. Among such service providers is Mobilunity. As a tech service provider, Mobilunity can provide:
- Dedicated CTO managed services, be it fractional or full-time CTO services
- React JS consulting and react-native CTO remote consulting and development services
- Tech product design, development, and maintenance services
- Highly skilled and experienced consulting and development services