A fractional chief information officer is an executive consultant who helps businesses align their information technology with their goals while staying on budget. They’re in charge of an organization’s information processing, which includes data center operations and system design and development.

Fractional CIOs may also go by various names, such as a company’s part-time chief information officer, a CIO on-demand, or a parachute CIO. Some fractional CIOs also work virtually – helping businesses with their processes, technology strategies, and technology roadmaps remotely.

Many smaller businesses can’t afford to bring on a full-time CIO, which is understandable. But they still need an expert available to make intelligent IT-related decisions for them to stay competitive. If they don’t, they could quickly land in murky waters.

A fractional CIO can come into play by offering strategic guidance and useful thought leadership if your business wishes to:

Invest in new programs and software

Stay on track to reach your projected ROI on technology investments

Incorporate a disaster recovery plan for your data

Unlike a traditional CIO, a fractional CIO works as a contractor rather than a member of an organization’s board of directors. They may still serve as an executive member of a company’s management team but often on a part-time basis.

Fractional CIOs tend to work for small and medium-sized businesses due to their flexibility and affordability. The primary benefit of partnering with a fractional CIO for many companies is gaining a high level of expertise without the overhead a traditional CIO demands.

A fractional CIO isn’t the same as IT support. CIOs focus on the big picture, while an IT support team covers more minor, day-to-day technology needs. IT support troubleshoots problems. CIOs make strategic decisions that impact your entire department and IT infrastructure.

Every day, we’re relying more and more on technology to keep our businesses on track. If you lack a dedicated IT expert or the IT bandwidth your company requires to remain competitive, you could quickly fall behind.

If you’re unsure of where business technology is moving, you likely need a strategic visionary on board. If you have budgetary constraints, a fractional chief information officer could be the perfect solution. Consider partnering with a part-time CIO if you fall into any of the following categories:

You need to set up your technology systems for future success.

You need an IT professional to offer critical industry insights, innovative ideas, and direction for your organization.

Your business needs someone to ensure systems are functioning correctly and running optimally.

Your company needs to hire an IT strategist for a fraction of the cost of a full-time CIO.

You don’t need a full-time consultant but more of a troubleshooter and project-based consultant.

You’re concerned about cybersecurity across your organization.

You need a forward thinking data strategy and model.

1. Strategy

Your fractional CIO must be a forward-thinking strategist. They need to understand the ins and outs of the technology industry and where it’s heading to keep your business informed and on the cutting edge.

Your CIO should help you coordinate your IT systems with other areas of your organization, like marketing, sales, finance, and administration. Every department is intertwined and must work toward the same overarching organizational goals. A high-level CIO executive can provide a vision and offer the direction you need to execute projects effectively.

2. IT Department Expertise

A fractional CIO can fill IT skills gaps, which can otherwise be very costly for your organization. They can take some of the “weight” off the shoulders of your current IT team by handling tasks such as:

IT management and leadership

Defining and reporting key performance indicators (KPIs)

Risk management

IT security, governance, and compliance management

Designing and optimizing processes

Evaluating and budgeting for ROI

Disaster recovery

Business continuity planning

Reviewing and negotiating contracts

3. Security

According to IBM’s 2021 Cost of a Data Breach Report, a data breach costs an average of $4.24 million – up 10% from 2020. In the U.S. specifically, it costs an average of $9.05 million. To improve your security posture, consider partnering with a fractional CIO to reduce cybercrime vulnerabilities throughout your organization. A CIO can help you identify threats quickly and build a cybersecurity program to combat them.

4. Budget

Unlike a traditional CIO, you only need to pay for a fractional CIO when you need them. You can scale their workload down or up to meet your current requirements. You can also work with CIOs virtually, increasing flexibility. Some CIOs charge hourly, while others may charge a flat monthly fee and offer services for a certain number of hours each month.

Ultimately, when you partner with an excellent fractional CIO, you’ll get the same level of expertise as a full-time CIO for a fraction of the cost.