# Virtual CIO Explained > A virtual CIO can be a major benefit for SMBs. Learn more about why many businesses are choosing to hire vCIO services here. Source: https://www.koombea.com/blog/virtual-cio/ Published: 2022-05-03 Author: Robert Kazmi --- Virtual CIO services have grown in popularity recently as digital transformation drives growth and competition. Many businesses find that a virtual CIO offers them fresh perspectives and unmatched technical expertise. All modern businesses use [software](https://www.koombea.com/capabilities/) and have IT needs. However, many companies don’t know how to develop a comprehensive IT strategy or digitize their business processes. A Chief Information Officer (CIO) handles everything related to an organization’s IT infrastructure. This post will explain what a virtual CIO is, how it differs from a traditional CIO, and the benefits of vCIO services. ## What Is a Virtual CIO? **A****virtual CIO****(vCIO) is a company or individual contractor that acts as a company’s****Chief Information Officer** **on a flexible basis**. Typically, vCIO services are contracted through an [IT consulting services](https://www.koombea.com/capabilities/) company. A virtual CIO performs all of the tasks a traditional Chief Information Officer would typically perform, including: - Developing an IT strategy - Developing an IT budget - Maintaining current IT infrastructure - Analyzing and optimizing business processes - Identifying opportunities for innovation - Facilitating technology changes A vCIO works closely with an organization’s IT department. Many businesses that employ vCIO services have limited IT resources or lack a formal IT department. Companies may grant a virtual CIO more decision-making power and technology deployment responsibilities in these situations. If you are familiar with managed service providers (MSP), you might think that a virtual CIO sounds very similar to an MSP. However, they are different in scope. MSPs typically focus on technology service delivery. On the other hand, a virtual CIO offers a broader service that aligns business goals and IT strategy. Virtual CIO consulting services will be most beneficial to small to medium-sized businesses (SMBs) that don’t have the resources to manage large IT projects, such as [digital transformation](https://www.koombea.com/blog/why-digital-transformation-is-so-important/), on their own. vCIO services offer businesses technical expertise to help improve organizational IT strategy at a more manageable price point. ## How Does a Virtual CIO Differ From a Traditional CIO? If a virtual CIO performs the same tasks as a traditional CIO, how do they differ? This is a good question, and it will be helpful to explore the answer for companies trying to determine which option best suits their business goals. The main differences between a CIO and a vCIO are: - Employment - Hiring - Cost - Responsibilities ### Employment The primary difference between vCIOs and CIOs is employment status. **CIOs are full-time executive-level employees, and vCIOs are contracted service providers**. vCIOs can have multiple companies that they work for. The chances of a vCIO having multiple clients increases when they are a service company versus an independent contractor. However, even independent contractors that offer vCIO services can have multiple clients. ### Hiring **CIOs are hired through traditional recruiting and hiring channels, but a vCIO is typically contracted through an IT consulting firm or MSP**. Many MSPs or consulting firms may informally market themselves as a vCIO to their smaller clients. So don’t be surprised if your consulting partner offers vCIO services but doesn’t advertise them officially on their website or other marketing materials. ### Cost **Hiring a traditional****Chief Information Officer****costs more than contracting****vCIO services**. A CIO is an executive-level position. Executives are generally well-compensated in salary, profit sharing, and additional benefits like healthcare. In addition, the cost to hire an executive like a CIO is greater than contracting services from a provider. A virtual CIO requires no added benefits and their prices are typically negotiable. Usually, vCIOs charge a flat monthly fee or an hourly rate. ### Responsibilities **vCIOs and CIOs share the same responsibilities**. However, how they approach their responsibilities will likely differ. The difference in approach can be attributed to internal relationships and politics. For example, a CIO will have intimate, daily contact with business leaders and employees. As a result, they will understand the organization’s internal politics and decision-making dynamics. A vCIO will not have the same level of internal insight. However, this lack of insight can offer fresh perspectives on [product discovery](https://www.koombea.com/capabilities/product-design/) or [product design](https://www.koombea.com/capabilities/product-design/) tasks. It is easy for companies to get stuck thinking about things in one way. Sometimes the best way to get a fresh perspective is to work with someone outside of the organization. ## The Benefits of vCIO Services The primary benefit that most businesses will see is cost savings. Virtual CIOs can help organizations save a lot of money, and while this is a great benefit, it is far from the only one. Beyond cost savings, the benefits of vCIO services include: - Availability - Objectivity - Expertise - Speed ### Availability Typically, vCIO services are provided by a company instead of an individual. **In most cases, a****virtual CIO****will provide 24/7 availability**. vCIO providers can offer 24/7 availability because they employ a team of consultants. A traditional Chief Information Officer is only one person and cannot offer 24/7 availability. If your business operates at odd hours, around-the-clock availability will be a huge benefit. ### Objectivity **Objectivity and fresh perspectives are significant benefits of a vCIO**. It is too easy to get caught up in internal politics and organizational thought patterns when working in a company. A virtual CIO can bring your company an objective perspective on legacy technology and strategic priorities. ### Expertise Since many vCIO services are provided by a team of consultants, **businesses benefit from a higher level of IT expertise**. Hiring and maintaining an IT team is expensive, but with a virtual CIO, businesses have access to a broader depth of IT expertise. vCIO services provide SMBs with more IT value for their budget than hiring a traditional CIO. ### Speed Hiring and onboarding a CIO is not only an expensive process but also a time-consuming one. However, **a****virtual CIO****can be hired and get to work faster than a traditional CIO**. If time is of the essence, and for many businesses it is, vCIO services get to work quickly. Don’t waste valuable time looking for the right CIO candidate. ## Final Thoughts While hiring a virtual executive for your business might seem like a bad idea, there are several good reasons why you should consider hiring a virtual CIO. SMBs can get unmatched value and IT expertise from vCIO services as compared to hiring a traditional CIO. If you want to learn more about vCIO services and the value a virtual CIO can provide your business, speak with an [app development partner](https://koombea.com).