Service Model
Outsourced CTO vs In-House CTO
External Expertise vs Internal Leadership
Outsourced CTOs (fractional/contract) provide external expertise while in-house CTOs (full-time employees) provide dedicated internal leadership. Each model has distinct advantages depending on company stage, budget, and needs.
Outsourced CTO (Fractional)
External technology executive providing strategic leadership on contract basis, typically part-time across multiple clients....
Cost
$8,000 - $15,000
Pros
- Lower cost ($96K-$180K vs $300K-$600K)
- Immediate availability (1-2 weeks vs 3-6 months)
- Diverse experience across companies
- Easy to change if not right fit
- No equity, benefits, or overhead
Cons
- Not fully dedicated to your company
- Serves multiple clients simultaneously
- Less cultural integration
- May not be available for emergencies
In-House CTO (Full-Time)
Full-time employee serving as C-level technology leader, fully dedicated to company mission and embedded in culture....
Cost
$200,000 - $400,000
+ Equity: 0.5-2%
Pros
- Full dedication to your mission
- Deep company and product knowledge
- Available 24/7 for urgent issues
- Strong cultural integration
- Equity-aligned incentives
Cons
- High cost ($300K-$600K+ annually)
- Long recruiting process (3-6 months)
- Expensive to replace if wrong hire
- Fixed cost regardless of actual needs
Head-to-Head Comparison
| Factor | Outsourced CTO (Fractional) | In-House CTO (Full-Time) |
|---|---|---|
| Annual Cost | $96K-$180K | $300K-$600K+ |
| Time to Start | 1-2 weeks | 3-6 months |
| Dedication | Part-time (multiple clients) | Full-time (single company) |
| Flexibility | Easy to change or scale | Difficult to remove |
When to Choose Each Option
Related Comparisons
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