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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
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