Technical Glossary

CTO as a Service

Fractional CTO / External CTO

Definition: CTO as a Service (CaaS) is an external technical leadership hiring model for companies that need strategic technology direction without hiring a full-time CTO. The external CTO provides senior experience in architecture, technical strategy and team management flexibly.

— Source: NERVICO, Software Development Consultancy

What is CTO as a Service

A CTO (Chief Technology Officer) defines a company's technology strategy: what to build, how to build it, with what team and what technologies. It's a strategic role, not just technical.

CTO as a Service provides access to this type of leadership without the cost and commitment of a full-time hire. The external CTO gets involved according to needs: it can be a few hours a week or intensive dedication at key moments.

What It Typically Includes

Technology Strategy

  • Define the technical roadmap aligned with business objectives
  • Evaluate and select technologies
  • Decide between build, buy or integrate
  • Plan for scalability and growth

Architecture

  • Design the system architecture
  • Review and improve existing architecture
  • Establish standards and best practices
  • Manage technical debt

Team Management

  • Structure the technical team
  • Define development processes
  • Participate in technical hiring
  • Mentor senior developers

Business Relationship

  • Translate business needs into technical requirements
  • Communicate technical limitations and possibilities to stakeholders
  • Participate in product decisions
  • Manage expectations and timelines

When It Makes Sense

Early-Stage Startups

Can't afford a senior full-time CTO, but need technical direction to make correct foundational decisions.

Companies in Transition

The current CTO has left and they need coverage while searching for a replacement, or are evaluating whether they need the role full-time.

Non-Tech Companies with Digital Projects

Traditional companies launching digital products and needing technical expertise they don't have internally.

Growing Scale-ups

The team has grown but there's no senior technical leadership. They need structure and direction before chaos scales.

What CTO as a Service is NOT

  • Not development: The external CTO doesn't write product code.
  • Not project management: Doesn't manage day-to-day tasks.
  • Not one-off consulting: Requires ongoing involvement.
  • Not staff augmentation: It's leadership, not extra hands.

How to Choose an External CTO

  • Relevant experience: Has solved problems similar to yours.
  • Communication ability: Can speak with technical and non-technical people.
  • Strategic vision: Doesn't just know technology, understands business.
  • Realistic availability: Can dedicate the time you need.
  • Cultural fit: Adapts to your way of working.

Typical Working Model

  • Dedication: 1-3 days per week depending on need
  • Duration: Minimum 3-6 months for real impact
  • Price: €3,000 - €10,000/month depending on dedication and experience
  • Format: Combination of remote and on-site

Related Terms

Does your company need technical leadership?

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