Outsourced CIO vs IT Consultant: What Your Business Needs
Most small businesses can’t justify a full-time IT director. But as the business grows, someone still needs to look ahead: which systems to replace, how to keep data safe, what to budget next year and whether that new software is worth it. Without that, technology decisions get made in a rush, usually when something has already gone wrong.
Two common answers are an outsourced CIO and an IT consultant. They sound similar, but they do quite different jobs. This guide explains the difference, when each makes sense and a third option many small firms overlook.
What is an outsourced CIO?
CIO stands for Chief Information Officer: the person in a large company who’s responsible for technology strategy. An outsourced CIO (sometimes called a virtual CIO, fractional CIO or part-time IT director) gives you that senior thinking for a few days a month, or a set number of hours, instead of a full-time salary.
A good outsourced CIO will typically:
- understand where the business is heading and plan the technology to match;
- build and keep up to date a technology roadmap: what needs replacing, upgrading or adding, and when;
- set the IT budget and help you avoid nasty surprises;
- own cyber security risk at a business level, including insurance, Cyber Essentials and what your customers expect;
- manage suppliers and contracts, and challenge them when needed;
- report to the directors in plain English.
It’s an ongoing relationship. The value builds over time, because they get to know your business, your people and your systems.
What is an IT consultant?
An IT consultant is usually brought in for a specific project or problem, with a clear start and finish. For example:
- choosing and moving to a new accounts, CRM or practice management system;
- planning an office move or a new building’s network;
- a security review after a scare, or getting ready for Cyber Essentials;
- a second opinion on a big quote from your current provider.
You pay for their expertise for that piece of work, then they move on. That’s ideal for one-off decisions, but they won’t usually be around to make sure the plan is followed, or to adjust it when things change.
The difference at a glance
| Outsourced CIO | IT consultant | |
|---|---|---|
| Focus | Long-term direction | One project or problem |
| Relationship | Ongoing, monthly | Fixed term |
| Typical output | Roadmap, budget, regular reviews | Report, recommendation or completed project |
| Knows your business | Deeply, over time | For the length of the project |
| Best for | Growing firms making regular tech decisions | A specific decision or change |
Which does your business need?
You probably need an outsourced CIO (or something like it) if:
- technology decisions keep landing on a director who’d rather be doing something else;
- you’re growing, opening a new site or taking on more staff;
- customers, insurers or contracts are asking harder questions about cyber security;
- you have several IT suppliers and nobody owns the bigger picture.
An IT consultant is probably enough if:
- you have one clear project, such as a system change or office move;
- your day-to-day IT is already well run and planned;
- you want an independent view on a specific decision.
The third option: planning built into your IT support
Here’s what many small businesses don’t realise: you don’t always need to hire a separate person for the strategic side. A good managed IT provider should already be doing much of the outsourced CIO role as part of looking after you: a written roadmap, budget planning, quarterly reviews and an eye on risk.
That’s how we work. Every client gets an IT roadmap and quarterly reviews as part of the monthly fee, alongside the day-to-day support. It starts with our free “Get It Green” IT audit: about half a day looking at your setup, then a simple red, amber and green report and an agreed plan to get everything into the green. From then on, the plan is reviewed with you every quarter, so it never gathers dust.
It’s worth asking your current provider: “Where’s our IT roadmap, and when did we last review it together?” If the answer is vague, you’re paying for someone to fix things, not to plan them. Our technology roadmap template shows what a useful one looks like.
Questions to ask before you hire either
- What will I get, in writing? A roadmap, a budget, a report, or a finished project?
- How often will we meet, and who attends? Strategy only works if it’s reviewed regularly.
- Will you explain things in plain English? If the board can’t follow it, it won’t get acted on.
- Are you independent? Check whether they earn commission on what they recommend.
- What happens after the plan? Someone needs to carry it out. Will that be them, your IT provider, or you?
Need a hand?
If you’re not sure whether you need an outsourced CIO, a consultant or just better planning from your IT support, we’re happy to talk it through. Start with a free IT audit and you’ll come away with a clear picture of where you stand and what to do next. Book a free call, or read our guide to choosing the right IT provider.
