What Is A Virtual CIO And How Can Your SMB Benefit From It?
Today’s business landscape is rapidly shifting to a more digitally competitive environment. For many small and medium enterprises, there’s a need to incorporate a robust IT strategy into their business plans to ensure their survival in the cutthroat industry. If you’re a new company with a limited budget for a fully dedicated IT executive, having a remote IT consultant or virtual CIO can be your next best alternative.
So what does a virtual CIO do and how can they help SMBs? A virtual CIO or vCIO is a third-party agency or independent consultant that can act as a company’s chief information officer. They’re IT experts that provide remote support and strategic consulting services to SMBs. They can help establish a secure IT infrastructure, identify security risks, and strengthen a company’s protection from cyber attacks.
What Role Does A Virtual CIO Have In SMBs?
A CIO, or chief information officer, holds one of the most important roles in any business. For many decades, CIOs have been essential for supervising a company’s IT department and assessing how they can use the latest technology trends and systems for their business processes.
It’s recommended to have a full-time CIO overseeing a company’s IT and business operations. However, this may not be feasible for startups and small and medium-sized organizations that have scarce financial resources to employ one in their team. This is where having a virtual CIO becomes helpful.
A virtual CIO is an outsourced help that can serve as the business’s chief information officer. It can be an individual contractor or a third-party managed services provider that can collaborate with the owners of the SMB and support their limited IT staff in making IT-related decisions. Here are some of the essential functions of a virtual CIO in SMBs:
1. Identifies the latest trends and IT opportunities to drive a company’s growth
Virtual CIOs have a keen eye for recognizing which trends, programs, and systems can fit in your business operations to give you a competitive edge in the fast-paced market. If your company is running on outdated technology, they can provide a much-needed update to improve internal processes so you can keep up with customer demands.
2. Helps establish and maintain a formal IT infrastructure
Virtual CIOs can create a solid IT infrastructure that supports your company’s day-to-day management, operations, and administrative tasks. They can implement tech-driven processes to improve employee productivity and generate more business revenue for the company. Having a good IT infrastructure is also essential for client management and improved customer service.
3. Spearheads security risk assessment and disaster management planning
There are many risks that come when a company goes digital such as cyber attacks, hacking, and data breaches. A virtual CIO can also amp up your businesses’ cybersecurity measures and protocols to minimize the threat of online attacks.
They’re in charge of setting up security systems to protect all sensitive data, as well as running regular risk assessments to check for any vulnerabilities in your systems. They can also help you prepare a recovery plan or backup information so that you won’t lose anything to the attackers.
4. Assists in project management and budget planning
Virtual CIOs are also tasked with developing new IT-driven business initiatives. They can create a plan that maximizes your current resources and make sure that it’s still aligned with your goals They can also suggest cost-effective IT strategies and recommend the best technologies that can give you a high return on investment in the long run.
Advantages Of Having A Virtual CIO For SMBs
An experienced virtual CIO can take a small business to greater heights, and they do this by ensuring that a company has the necessary technology to meet its goals and objectives. But aside from facilitating the growth and IT sustainability of the company, there are other benefits to having a virtual CIO in the team:
- Cost-efficient: With a virtual CIO, you’re getting the full services of a senior IT executive for a fraction of a price compared to actually hiring one in the team. Virtual CIOs work remotely and they can charge at an hourly rate or monthly fee which can be more affordable for SMBs.
- Provides fresh perspective to the business: A third-party virtual CIO can provide new ideas to the table and bring solutions to the issues that your team may have been struggling with for a long time.
- Proactive and thinks long-term: A virtual CIO always thinks about the big picture and they will actively communicate all growth opportunities that can benefit your company. They can also constantly monitor your IT systems and provide regular reports and reviews about the current business landscape.
- Improves work management and employee performance: Virtual CIOs can implement programs that ensure maximum work productivity and smooth day-to-day operations. They can also foster a culture of collaboration as they work closely with the business owners to find the right IT solutions.
Modern-Day Challenges That A Virtual CIO Can Help With
Without a virtual CIO to make up for the lack of an IT executive or team, SMBs may have a difficult time dealing with IT issues and business management concerns that may come up on a regular workday. Here are some of the common problems that companies may encounter and how VCIOs can help overcome them:
| Problems | How VCIOs Can Help |
| Cybersecurity and data protection issues | VCIOs can set up security measures and systems to protect the network against attackers. They can also educate the employees on cybersecurity awareness so they know what to do in case of unforeseen IT issues. |
| Lack of a loyal customer base or low customer satisfaction | VCIOs can provide data-driven insights on how an SMB can improve its customer service. If there are new product trends, a VCIO can integrate changes or updates to your IT infrastructure so you can keep with the customers’ new demands in the market. |
| No data backup plan or recovery strategy | VCIOs can introduce cloud-based platforms where SMBs can store their data in one and safe convenient place. Most cloud solutions are also inexpensive so they can save a startup from spending more on physical storage. |
| Unfamiliarity with the new software, hardware, and computer systems | VCIOs can help train team members on how to use the latest software and computer programs to ensure their productivity. They can also do regular system checkups and updates to avoid software issues that may interrupt with their workflow. |
How To Get Started On Hiring A Virtual CIO
Most virtual CIO services are SMB-friendly but their pricing schemes can vary depending on whether they’re an independent contractor or a managed IT services provider. For individual virtual CIOs, they can present a short-term contract and charge on an hourly basis. Depending on the level of experience of the individual, the hourly rate for VCIO services can start at $200.
You may also inquire with third-party IT agencies or managed services providers where they can charge a monthly subscription fee for a virtual CIO. The price can range anywhere from $2000 to $10,000, but it can depend on the type of plan and the specific services that you’re availing.
To make sure that you are getting the most out of your virtual CIO, here are some tips to help you find the right IT consultant for your SMB:
- Do your research and find an agency or a freelance executive who has proven experience in the IT industry
- Although you don’t need to interview them, you still have to make sure that their services and recommended strategies are aligned with your mission and goals
- They should be creative and able to think outside the box to help your company deliver new innovations and answers to the challenges in the market
- They should also have expertise on security systems so they can set up comprehensive security and IT protocols within the company
- Your virtual CIO should also have leadership skills to inspire and drive the team towards business success
Set Your Business For Success With Abacus IT Solutions
When looking for outsourced IT support, SMBs can rely on a managed services provider like Abacus to offer an all-in-one solution for their business and operational needs. We have a team of highly-experienced IT engineers and support personnel, and we’ve made it our mission to help business owners ensure success and productivity within their organization.
From security management and systems integrations to data recovery, business analytics, and consulting, our team at Abacus can provide for all your IT needs. Learn more about our services by browsing our website or call us at (856) 505 – 6860 to talk with one of our experts.
