Fractional CIOSMEIT Strategy

Fractional CIO vs internal IT manager: which is right for a 10–50 person organisation?

When an organisation starts asking “we need someone to manage our IT”, two options quickly emerge: hire an internal IT manager or bring in a fractional CIO. Both have their merits — but they don’t address the same problems.

What an internal IT manager actually does

An in-house IT employee handles day-to-day operations: device management, user support, access control, password resets, minor incidents. It’s a resource that’s always available — useful when the volume of requests is consistently high.

But a junior or mid-level IT manager doesn’t always have the strategic vision to:

  • evaluate cloud platforms and forecast costs over 3 years,
  • assess cybersecurity risks and propose an appropriate policy,
  • negotiate telecom or software contracts with vendors,
  • align IT decisions with the organisation’s growth objectives.

What a fractional CIO does

A fractional CIO operates at the strategic level. They don’t handle support tickets — they drive the IT decisions that affect performance, security and cost. In practice: an initial IT audit, prioritised recommendations, monthly steering reviews, vendor selection and management of critical contracts. All billed as a subscription, without a fixed salary overhead.

The key question: what is your actual problem?

Before choosing, answer these questions honestly:

Do you need more hands? If you have a high volume of incidents, devices to configure or users to assist, an internal IT person or a managed service provider makes more sense.

Do you need more vision? If your IT roughly works but no one is steering it — contracts are never renegotiated, you have no clear backup policy, decisions are made reactively — that’s a governance problem, not a support problem. That’s where a fractional CIO creates value.

Situations that favour outsourcing

  • Organisations of 5 to 30 people without a designated IT lead
  • Budget insufficient for a full-time IT position (typically €45,000–€65,000 gross per year for a competent profile)
  • A specific project requiring expert input (cloud migration, ERP selection, security audit)
  • Preference for budget flexibility without long-term salary commitment

Situations that favour internal hiring

  • More than 50 employees with a complex device and infrastructure footprint
  • High volume of daily incidents requiring physical on-site presence
  • Strongly regulated sector (healthcare, finance) that requires a permanent named internal contact

When both are needed

The two approaches are not mutually exclusive. Many organisations combine an internal technician for first-level support and a fractional CIO for strategic governance. That combination often becomes the most effective setup once the organisation grows beyond 25–30 people.


Not sure which model fits your situation? Tell us about your context — we’ll help identify the right intervention format.