Technical Chief


When it comes to launching your first startup, there are plenty of tasks you have to handle. Composing a business plan for your project, selecting the right model, resolving legal issues — all these activities take much time and effort.

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However, when being asked, most entrepreneurs consider team composition to be the most challenging activity.

According to the recent research released by CBInsights, hiring wrong people to your company may become the reason for your failure. Startups either do not have sufficient resources to complement their teams with experienced professionals or do not know how to find them.

Especially when it comes to selecting candidates to the top management positions, assigning the right people on the right roles is paramount.

Top-20 reaseons startups fail

Especially when it comes to selecting candidates to the top management positions, assigning the right people on the right roles is paramount.

Instead of overcoming these challenges alone, you can address experienced companies with a large pool of talents, which will assist you with this task!

CaaS: What Is iT and How It Evolved?

СTO-as-a-Service (or CaaS) is the practice of bringing an external technology consultant who performs the role of a CTO in your company, such as assembling a strong team of engineers, selecting the right stack, business model development, etc.

This person guides you from the idea evaluation until the launch of your product. Why should you consider CaaS instead of hiring in-house CTO?

CTO-as-a-Service may become a perfect solution for both startups and well-developed companies. He/she builds the processes, makes sure they work perfectly well and leaves the organization when you do not require CTO’s support anymore. In such a way, you pay only for the services provided and avoid spending money on perks and other incentives.

With CaaS, You Can:

  • Quickly find the right match for a CTO position 
  • Get access to a large pool of talents
  • Have a wide choice of candidates
  • Get a seasoned partner proficient in tech stack you need
  • Get continuous support during the project
  • Build processes in the most effective way

Why CTO is the Most Important Person in a Company

Chief Technology Officer is one of the key players in your team. If you fail to find the right match for a CEO or CMO position, you will definitely have losses. Nevertheless, there is a good chance you will consider lessons learned and find the right substitution soon.

At the same time, the wrong CTO will bring more damage to your company. Startups are the first to get into this trap due to the lack of time and experience. Newbie entrepreneurs cannot allocate sufficient resources to bring in a seasoned professional who can build a strong team. Thus, they are more prone to make a “leap of faith” and rely on their luck.

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The cost of failure may be really high. While some companies experience significant financial losses, others have to change the whole idea behind the product, reconsider their business strategy and change the focus to more relevant areas.

Furthermore, the team spirit also suffers when developers do not have a knowledgeable manager to support them with challenging tasks. If they face difficulties, they need supervision to develop as a professional and improve their skills. When CTO cannot meet the needs of team members, developers might get demotivated or even quit leaving the project halfway.

When it's Better to Resort to CaaS

If you are weighing up all the pros and cons of using CaaS instead of hiring an in-house employee, we can assist you with this task.

Let’s look at the cases when using CTO-as-service becomes the best solution.

Investor Pitch

Do you have a great idea in mind but do not know how to attract investors? Third-party CTO may become your reliable partner who will consult you on the ways to attract investors and pitch to them. This person has already done it several times, which increases your chances for success.

Startup Development

When you are just starting your path in the IT business, finding the right match for a CTO position is often challenging. Some businesses lack resources, while others do not have sufficient knowledge and experience. CaaS is often a solution. You can hire a temporary CTO to build processes and assemble a team, which will provide you with a certain vision on how to develop further.

Find New Cost Cutting Opportunities

Hiring in-house CTO may cost you a fortune. The latest statistics have shown that an average annual compensation of the US-based Technology Officer is estimated at $280 916, which is often an unbearable sum for developing companies.

To avoid such costs, you can hire a CTO in a temporary position and pay half of that compensation. Instead of wasting your time and recruiting efforts in the hope of bumping into the right person, it is always better to rely on professionals.

By using CTO-as-a-Service, you get a cost-effective solution that meets your business needs. Before to get down to team composition, way up all pros and cons, look at your budget and define which roles can be outsourced. In such a way, you increase your chances for success and get a seasoned consultant to support you in any endeavor.


+372 50 28 489

Tallinn, Estonia

Valukoja tn 8/2, 11415


+372 50 28 489

Tallinn, Estonia

Valukoja tn 8/2, 11415

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