Rapid digital transformation, unpredictable growth, and intense competition have led to the virtualization of many modern job roles. This new kind of job role is gaining traction as a cost-effective way to provide certain companies with the senior experience and expertise of an executive role.
A virtual Chief Information Officer (vCIO) is a dedicated resource who serves as a Chief Information Officer on a flexible basis. The primary role of a virtual CIO is to formulate strategic IT goals for your company and then manage an IT strategy and budget that meets those goals. Most vCIOs are hired through a reputable IT consulting service firm and have years of experience working as IT strategy consultants for companies across various industries.
Regardless of what your business does, you use technology to help run it. Your technology infrastructure is the backbone of your organization—without it, your business would likely fail.
Whether it's remote collaboration, processing payments, scheduling appointments, paying your employees, creating and managing content, or even just sending emails, your technology is essential to business operations.
Every single business has some sort of IT support, but a few common setups include:
If you fall into category 3 or 4, your business can probably benefit from the strategic expertise of a vCIO. Their degree of involvement might range from a one-time project to a few hours a month on an ongoing basis to help keep your business ahead of the curve.
Technology is complex, and it changes fast.
Many companies struggle to keep up with their main business challenges. They also find it hard to manage their technology stack.
Even skilled internal IT teams often feel overwhelmed. They struggle to keep systems and operations running smoothly. They have little time to focus on a technology roadmap or strategic planning.
Many companies are stuck in a rut, continuing to maintain outdated technology that is hindering performance. The ultimate goal is to leverage technology to increase revenue and decrease expenses. If you’re not using the right technology and systems to meet your goals, you might waste a lot of your budget.
When was the last time you took a good look at which applications you’re actually using? Better yet, which apps are you wasting money on because no one is using them?
You may have a strong in-house IT team that keeps your systems running well. However, third-party IT consultants can offer new ideas and help achieve your goals.
An objective third party is usually in a better place to identify issues that might have been overlooked and make recommendations about improving or replacing legacy systems and practices. Managed IT services are a great way to lower costs while getting access to expertise and technology you probably can't afford to provide in-house! This can include access to vCIO and related services.
Most Managed IT Service Providers offer vCIO services as part of their portfolio, so it's worthwhile to shop around to find the best fit for your company’s needs.
Developing a strategic technology plan can be a complex and difficult task, and not everyone has the skills to do it effectively.
While a full-time traditional CIO is out of reach for many businesses, a seasoned vCIO has the advantage of having seen hundreds of other companies struggle with the same challenges as yours and knowing which technologies are best for solving specific problems.
Beyond having in-depth technical expertise and being on top of the latest technology trends, a vCIO needs to have a good understanding of business management. This is a critical skill that’s required to understand business goals, ultimately turning your objective into a robust, long-term strategic technology plan that aligns with your business and your unique needs and vision.
Below are 6 ways a virtual CIO can provide value to virtually any organization:
Read the Case Study: How a Virtual CIO Can Drive Strategic Business Growth
Security is one of the most important roles a vCIO plays in a company. In fact, there is now a special designation for a vCIO who has extensive cybersecurity experience: a virtual Chief Information Security Officer (vCISO).
Just like a vCIO, a vCISO is a service designed to make top-tier security experts available to organizations that need cybersecurity expertise and guidance. This has quickly become a huge need, as cyber risk is now a major concern amongst executives.
The sophistication of attacks, the technologies designed to defend against them, and the global regulations emerging to address them are evolving rapidly—and it's incredibly challenging for medium sized businesses to keep up. If you don’t have an internal cybersecurity expert or it doesn’t make sense to hire one full-time, you may want to consider hiring a vCISO.
Starting with a risk assessment, your vCISO will develop and implement a strategic security plan that spans your entire organization. This may include security policies, training programs, business continuity planning and disaster recovery, reporting and regulatory compliance, and much more.
Larger organizations will sometimes have both a vCIO and a vCISO, dividing up the tasks and responsibilities as appropriate.
But keep in mind these are just titles. A good vCIO should have all the expected technical skills and certifications that are necessary to keep your company safe and secure!
Many smaller-scale or private businesses can’t afford a full-time CIO. The salary for a CIO at a large company is around $450,000, dipping down to about $100,000 at smaller organizations. Of course, there is often overhead on top of this in the form of benefits, bonuses, and profit sharing.
While pricing structures vary, a vCIO generally charges either an hourly rate or a flat fee, with the latter working as a subscription model where the client pays on a monthly basis. The hourly rate can vary widely based on your location and a few other factors, but generally starts at around $200 an hour and goes up from there.
A subscription service (monthly recurring) is even harder to calculate, but you can expect to pay anywhere from $2,000 to $10,000 a month, depending on the size of your organization and the services you require.
If your business is growing quickly, you’re going to need to do quite a bit of technology planning to make sure that your IT infrastructure keeps up—not to mention your security protection.
Most small to mid-sized businesses (SMB) have at least one person, if not a whole team, who is experienced with their company’s IT systems, but many aren’t even sure where to begin when it comes to devising a long-term technology plan.
Here are the top 3 ways a vCIO saves you money:
You keep your business secure and protected from cyberthreats (many SMBs wildly underestimate the cost of a data breach.)
As a company expands and its technological needs become more intricate, the role of a virtual CIO undergoes a transformation to offer tailored strategic guidance. This evolution involves adjusting IT strategies to correspond with the company's progression, with a focus on expanding IT infrastructure, fortifying cybersecurity protocols, and seamlessly integrating innovative technologies.
The virtual CIO facilitates smooth transitions through varying phases of growth and complexity within the IT landscape by ensuring that the technology strategy remains in harmony with the business objectives. This ability to adapt and align with the evolving technological demands of a growing company is essential in driving continued success and efficiency in the ever-changing business environment.
The key differences between a virtual CIO and a full-time in-house CIO hinge on flexibility, cost-efficiency, and perspective. A virtual CIO can offer a broad range of experiences and insights from working with multiple companies, which can be beneficial for innovative and adaptable strategic planning. However, an in-house CIO may have a deeper understanding of the company's culture and inner workings, potentially leading to strategies that are more tailored to the specific organizational context.
Planning for the future of your business while trying to keep up with rapid technological growth is tough. Having an IT expert in your corner to manage these obligations can help alleviate some of the pressure on your company, employees, and clients.
If you would like to dig deeper, check out our case study which details how our vCIO services helped an architecture and design firm with their global expansion plans, ensuring they had the right technology in place for future growth.