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what is a cto as a service cto as a service caas stands for the business advisory and technical implementation services provided by a chief technology officer for a startup a cto
is an executive that meets a startup s technical needs and also coordinates
its research and development he or she assesses both the short and long-term requirements of your business and leverages investment to
enable your startup to achieve its objective the
cto reports to the chief information officer cio
and in some cases the chief executive officer ceo
or the founder companies that don t have a cto
or lack the knowledge of how to hire one can outsource the advisory
and responsibilities of a cto to an external expert while the concept of cto as a
service might still be new it is fast gaining momentum what are the
benefits of cto as a service one of the notable benefits of cto
as a service is that you only pay for the services you enjoy this is more like software
as a service saas or platform as a service paas where you pay for cloud facilities you use your startup might not have the financial capability to bear the cost of
hiring a full-time cto even if you do it makes a whole lot of sense to minimize cost
and maximize your profitability by outsourcing your cto roles
cto as a service what are the types of cto services cto types depend on the
functions and the collaboration you expect from a
cto complex and technical functions will require a full-time in-house cto while consulting and
advisory services can necessitate hiring a part-time external cto nevertheless we can break
cto services into five types full-time internal cto services one-time cto services full-time internal services a full-time internal cto services
include technical and business support a full-time cto also offers
full-time support in the aspects of business development planning and soft-skills
management however you should know that going for this option will
attract extra expenses for your startup for instance office rent hr expenses and miscellaneous expenses
will be borne by you full-time offshore services outsourcing to a full-time offshore cto affords you the privilege of a full-time
collaboration while you still pay the budget
cto salaries in this case a specialist becomes an in-house expert with about
40 hours worked per week remotely part-time offshore or fractional cto services the cto in this
category works the expected and agreed hours in the contract this option helps you evaluate what
services are needed and the time it will take to complete them since it is
cost-saving this option is the best when it comes to
collaborating with an external cto one-time cto services this option is suitable for
projectized companies the cto focuses on specific duties and processes
specialists in the category are employed to troubleshoot technical areas or perform
an audit interim cto services an interim cto is a technical expert hired to
temporarily collaborate with a full-time internal cto and other c-level executives on some technical and
business responsibilities the main aim of employing an interim cto is to help you invigorate
your technology and processes and to assist your team in driving
digital transformation cto services by startup growth stage every startup needs a cto to manage the technical aspect of the business it is therefore important to define the roles
and functions they perform by startup growth stages prototype the
prototype stage or the proof of concept poc is a phase in your startup s growth where you conduct a test to validate your idea
or product to know how feasible it is for
commercialization the role of a cto includes conducting feasibility studies prepare a document presentation or demo
explaining the idea or product discovery phase most startups have brilliant ideas but lack
execution if you fall into this category you
only need to hire a cto to assist you with the discovery phase of your
idea or product some of the responsibilities expected from a cto in this phase include
architecture development save cost several startups
need the services of a cto since they cannot employ a full-time it is cost-efficient to
hire a part-time cto you will enjoy all the services you need
at a budget price pay-per-use you don t incur additional expenses when collaborating with an external
cto you only pay for the service rendered this is not so in the case of an in-house
cto where you bear all expenses access a large talent pool outsourcing exposes you to a global talent pool an external
cto also saves you development expenses independency improved agility while you can build your business
using a trial-and-error approach to run your business you might be signing up for
a long trip the input of a cto counts as you get to clarify and resolve technical and business issues which can create
a lag in your business processes and startup growth conclusion cto as a service enables startups to
harness the skills and experience of a full-time cto but at a more manageable cost with on-demand cto you are paying only for
the technical leadership effort you need it can be a great and cost-effective solution for your immediate
needs and long-term challenges