Technology continues to change and grow in the industry as innovators launch new products and services to enhance the lives of thousands or millions of people. For any business to be thriving and expanding in today’s business landscape, it’s essential to stay current with the latest technology and adapt to market changes.
There are several options to consider but one that is appealing is hiring a Chief Technology Officer (CTO) to address business needs. While that is a good business strategy, that doesn’t mean it’s the best decision a business can make. For example, a business could outsource their own CTO.
Here are some considerations to make about whether hiring a CTO in-house or outsourcing one is the best for the company.
What Do CTOs Do?
What a CTO does in an organization varies from sector to sector and even business to business. Generally speaking, the CTO overlooks:
- Tech needs
- Development of new technology
- Oversight and security of the entire workflow
- Assess the technological needs of the company on a short-term or long-term basis
- Acquire new tech or upgrades
- Redesign existing tech to align with organization’s needs
All these duties ensure the company achieves its goals and is able to provide the best products or services to exceed their customers’ needs.
Advantages Of Having A CTO In-House
Here are some key advantages of having an in-house CTO. They:
- Ensure tech strategies align with business goals
- Offer specific advice on technical challenges to help in decision-making
- Handle implementation of technology and installation of risk-mitigation operations
- Make strategies that focus on digital transformation of business processes. Also offer advice on how technology can grow the business
- Minimize operation risk by making sustainable processes and facilitate proper planning for resources
Advantages Of Having A CTO Outsourced
Hiring an external CTO is another avenue to explore and there are several advantages to this decision as well. Some of them include:
- Lower costs significantly as companies don’t need to pay significant salaries, bonuses, severance packages, and other benefits that are often required to keep full-time CTOs
- Companies will be able to have external knowledge and new ideas from an outsourced CTO
- Companies will also benefit from professional experience from someone with hands-on experience
- The CTO will have an unbiased opinion regarding best practices
- The IT department will become more productive and effective as a result
What’s The Best Decision?
When choosing between having a CTO in-house or outsourcing it, it depends on the business or company’s lifecycle stage as well as current technological requirements.
For small and medium-sized businesses, they don’t need a full-time CTO to manage their teams and develop strategies for technology. In those circumstances, hiring a Managed Service Provider (MSP) would provide a competitive edge and would be cheaper than an outsourced CTO.
Mtek Digital Managed Business Service
Mtek Digital provides help with virtually any business technology requirement. From IT services to cybersecurity, we’re capable of servicing the tech industry throughout Canada. Contact us today.