Fractional CTO vs Development Agency
Leadership vs delivery resources
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Key Takeaways
- 1Fractional CTOs work 1-3 days per week, providing senior expertise without full-time costs
- 2UK day rates range from £900 to £1600, depending on experience and sector
- 3Typical engagements save 50-70% compared to full-time executive hires
- 4Ideal for startups, scale-ups, and SMEs needing strategic leadership
- 5No employment overhead: no pension, NI, benefits, or notice periods
Complementary, Not Competing
A fractional CTO provides technical leadership and strategy. A dev agency provides development capacity. Many companies use both—the CTO defines what to build and oversees quality while the agency provides hands.
What a Dev Agency Provides
Development agencies offer execution capacity—designers, developers, and project managers to build what you specify. Good agencies execute well, but typically do not provide strategic technology guidance.
What a Fractional CTO Provides
A fractional CTO defines technology strategy, makes architecture decisions, evaluates technical approaches, and ensures quality. They tell you what to build and how—agencies build it.
The Power Combination
Consider both: a fractional CTO to provide strategic oversight and quality control, with agency resources for execution. Your CTO manages the agency relationship and ensures technical excellence.
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