Between “IT is handled by the colleague who is good with computers” and “we have a CTO for €120,000 a year” there is a rational middle step. It is called a fractional CTO, and for companies with €1–20M revenue it is often the best IT decision of the year.
What a fractional CTO actually does
Owns the technology strategy: which systems to build, which to buy, which to switch off. Negotiates with vendors — proposals are suddenly approved by someone who knows what a day of work should cost. Manages security and NIS2/GDPR compliance. And builds the internal team if one is meant to exist. Typical engagement: 2–6 days a month, from €3,900.
When it is not enough
If you are building a software product as the core of your business and the team grows past 10 developers, you need a full-time CTO — the fractional model is then good as a bridge for 6–12 months while you search. An honest provider will tell you that themselves; it is, incidentally, a good test of their motivation.
The first 90 days of a fractional CTO
A good fractional CTO does not start by buying technology, but with an audit: what the company has, what it costs and where the biggest risks are. From that comes a prioritised, budgeted roadmap that management signs off. Only then come the build, buy or switch-off decisions. The first tangible output is usually a saving — a cancelled pointless licence or a better-negotiated contract.
The conflict of interest to ask about
If your fractional CTO is provided by the same firm that then does the development, ask how they handle independence — an advisor who recommends themselves is not an advisor. We separate it contractually: in the CTO role we represent your interest, even when that means sending work elsewhere. That independence is exactly what a fractional CTO is paid for.
Payback is easy maths: one rejected pointless investment or one well-negotiated SLA pays for the service a year ahead.