7 Reasons Why Companies Hire Fractional CTOs
Fractional CTOs are puzzling for many people.
- "Why wouldn't companies simply hire a full time CTO?" - Some people asked me over DMs.
Reasons To Hire a Fractional CTO
- The company budget is low.
- A Fractional CTO is faster to hire.
- Companies lack the knowledge to build technology.
- The company is transitioning from outsourcing to in-house development.
- The need to hire many CTOs.
- To raise venture funding.
- Issues within the team.
Why Companies Are Hiring Fractional CTOs
So here are 7 reasons why companies hire Fractional CTOs.
1. Companies Don’t Have Budget for a Full Time Hire
Salaries for tech leaders are higher than ever, and salaries for full time CTOs are often above $200k/year.
As such, companies that have a tight budget consider hiring such an experienced CTO, but only for a few hours a week.
2. Hiring a Fractional CTO Is Faster Than Hiring a Full Timer
Hiring a full timer means long interviews, notice period, etc. It can easily take up to 6 months.
On the other hand, Fractional CTOs usually have the bandwidth to start much earlier, given the fast nature of engagements.
3. Companies Want To Build Technology, but Don’t Know How
A common use case for Fractional CTOs is to strategize products and technology, together with a company's Founders/Execs.
Companies don't usually need someone full time for this. But sound experience is mandatory.
4. Company Is Transitioning From Outsourcing To In-house Development
This is very common for companies that launch new products and find product-market fit.
They first leveraged outsourced developers, and now want to ramp up their own internal team as they get ready for scale.
5. Company Needs To Hire Many Engineers
This comes often at startups after funding rounds, where suddenly they need to hire many engineers in a short amount of time.
They chose to hire someone externally to handle these new processes to avoid a short term slowdown.
6. Company Wants To Raise Venture Funding
This is common since upcoming VC rounds come with product/tech requirements. Such as:
- Hiring plans
- Architecture review
- SW dev processes
- Business continuity, disaster recovery, etc.
- Compliance, certifications, etc. in order.
7. There’s a Roadmap and a Team, but There Are “Issues”
This is a catch-all for shit shows like:
- Sudden departure or prev leader
- Many team members are leaving
- Abandoned projects that are picked up again
- Speed is too slow
- Costly bugs often going to prod
In case you're wondering what a Fractional CTO is in the first place, read my recent thread.
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