How Much Does a Fractional CIO Cost?
Why should your business have a Fractional CIO?
The Chief Information Officer (CIO) is a crucial role in a business, with the ultimate responsibility for all of its IT and technology. Because CIOs tend to have decades of expertise, they command high salaries.
Your business should have a CIO because the right CIO will align your IT strategy to support your business strategy and goals. They will look beyond the day-to-day to ensure that IT not only keeps the business running smoothly but that it also drives growth. A CIO will also smooth out integration issues and take ownership of transformational projects like an ERP and cyber security.
How can a Fractional CIO help cut business costs?
Many mid-market businesses need a CIO, but they may not have the resources or the need for someone full-time. This is where a fractional CIO comes in: ‘fractional’ simply means part-time, because they work for other companies as well. A fractional CIO is still an executive, making high-level decisions in the best interests of your company—streamlining and improving IT processes to keep costs down, managing teams and suppliers, negotiating with suppliers when necessary. But as the fractional CIO only spends a portion of their time with your business, salary and benefit expenses are reduced. A fractional CIO, therefore, allows your business to have financial flexibility, to keep overheads reasonable, and to spend in other areas that need addressing.
Cost of a Fractional CIO
Full-time CIOs are expensive – according to recent surveys, up to $300,000 per year in salary alone. Of course, the experience of the CIO and where they work will affect the salary, but a full-time CIO will never come cheap. A fractional CIO, however, can be a great option because it costs a fraction of the full salary, whilst providing the services your business needs to grow. To get an idea of how much a fractional CIO may cost your company, contact us at Freeman Clarke.
‘We were looking to tap into the experience of a successful IT leader who is as comfortable having a discussion on business strategy as they are discussing IT operations, innovation and digital disruption. Freeman Clarke provided us with the perfect individual to be our CIO. He quickly connected with our high-energy culture and international footprint and helped to get colleagues excited about the possibilities of change.’ — Nicola Stott, Global Managing Director, Exigent.