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Florian Meier
Chief Executive Officer
CIO AS A SERVICE IT EXPERTISE FOR SME
Many companies today are under increasing pressure to align their IT more closely with their business objectives. A well-thought-out IT strategy is no longer a luxury, but a clear competitive factor – even for SMEs. While large companies employ entire IT departments headed by a Chief Information Officer (CIO), SMEs face a challenge: they need the same strategic IT expertise, but often cannot justify a full-time position for a CIO. The answer? CIO as a Service (CIOaaS) – a flexible model that enables SMEs to access experienced IT executives when and how they need them.
What does CIO as a Service mean?
CIO as a Service describes a service model in which companies can draw on the expertise of an experienced IT manager without hiring them permanently. Similar to other ‘as a Service’ models, companies only pay for services actually rendered, whether on an hourly basis, on a project-by-project basis or as part of an ongoing mandate.
The external CIO performs the same tasks as an internal IT manager – strategic, advisory and often operational:
- Developing and implementing an IT strategy that is aligned with the company's goals.
- Optimising the IT infrastructure and digital processes.
- Budget planning and cost control in the IT area.
- IT risk management and cybersecurity.
- Advising management on technological issues.
- Coordinating and managing IT projects.
- Evaluating new technologies and their implementation.
The decisive advantage: you can use this expertise flexibly – exactly when you need it and to the extent that makes sense for your company.
WHY IS CIO AS A SERVICE PARTICULARLY RELEVANT FOR SMES?
According to recent studies, only around 47–50% of Swiss SMEs have a formal digitalisation strategy. This means that half of them are operating without a clear roadmap. At the same time, 44% of companies say they are dissatisfied with their progress in digitalisation, while 34% feel threatened by digital competition. IT leadership and clear objectives are particularly lacking – a CIO as a Service can provide a targeted solution here.
1. Cost efficiency combined with expertise
According to salary analyses, the average annual salary for a CIO in Switzerland is around CHF 145,000, and in large companies or for experienced staff, it can even be as high as CHF 200,000 to CHF 250,000. For many medium-sized companies, this expense is disproportionate to their actual need for strategic IT management.
In comparison, studies show that a CIO as a Service only costs 35–50% of this amount, as you only pay for the services you actually need, whether on an hourly basis, project-based or as part of a mandate. With the CIOaaS model, companies get access to top-notch expertise on demand and only pay for the services they actually use. This allows for precise budget planning and prevents wasted resources.
2. Access to top expertise and industry knowledge
Rapid technological change is a major challenge. Without specialised IT staff, many SMEs struggle to keep up with new technology trends, cyber security threats and regulatory requirements. This makes them vulnerable to security breaches and business interruptions, which can quickly become critical to their operations.
An external CIO not only brings their expertise to the table, but also valuable experience from various companies and industries. This opens up new perspectives and enables practical, innovative solutions – especially for companies that want to develop digitally or reposition themselves. In addition, the external CIO always has their finger on the pulse: By working with multiple companies, they are familiar with the latest trends, tools and security standards – and can draw on the specialised expertise of a well-coordinated CIO team depending on the task at hand.
3. Flexibility in collaboration
The demands on your IT management change depending on the phase your company is in. During a digital transformation or system changeover, you may need intensive support, while in other phases a monthly check-in may suffice. The CIOaaS model adapts to these fluctuating needs and scales with your company – agilely, efficiently and without long-term commitments.
This flexibility is particularly valuable for growing SMEs that need to continuously adapt their IT strategy to keep pace with their business development.
4. Objectivity through an external perspective
An external CIO brings a fresh, neutral view of existing structures. This helps to identify blind spots, question entrenched processes and reveal hidden optimisation potential without political dependencies or internal operational blindness. This objectivity is particularly valuable when it comes to evaluating existing systems or making strategic decisions about future IT investments.
Internal CIO vs. CIO as a Service: A direct comparison
The decision between an internal CIO and CIO as a Service depends on various factors – from the size of the company and the available budget to strategic goals. The following comparison shows the characteristic features of both approaches and helps you make the right decision for your company.
WHEN DOES CIO AS A SERVICE MAKE SENSE FOR YOUR SME?
CIO as a Service is a particularly worthwhile option if one or more of the following scenarios apply to your company:
You are facing a major IT project or digital transformation
Implementing a new ERP system, migrating to the cloud or digitising business processes are complex undertakings that require strategic leadership. An experienced external CIO can manage such projects, minimise risks and ensure that the technical solutions are aligned with your business objectives.
You need an objective assessment of your IT infrastructure
If you are unsure whether your current IT equipment optimally supports your business requirements, a CIO as a Service can perform an independent assessment. This analysis reveals weaknesses and provides concrete recommendations for improvement.
You are looking for strategic guidance for your IT orientation
Many SMEs have competent IT administrators who ensure day-to-day operations. What is often missing, however, is the strategic component: how should your IT develop over the next three to five years to best support your business goals? An external CIO can fill this gap and develop a future-oriented IT strategy.
Keeping pace with changing regulations
Regulatory requirements are constantly changing – whether in the areas of data protection, data portability, interoperability or fair data access. It can be challenging to keep up with new requirements, especially for SMEs that operate internationally or offer digital services. An external CIO ensures that your IT strategy addresses such regulatory developments in a timely manner and that necessary technical and organisational adjustments are implemented early on.
You want to optimise your IT costs
Information technology expenses represent a significant cost factor for many SMEs. An experienced CIO can analyse your current IT expenses and identify potential for optimisation – whether through system consolidation, renegotiation of supplier contracts or the strategically correct use of cloud solutions.
You are looking for temporary leadership expertise
If your company is in a transitional phase – for example, while searching for an internal IT manager or during a comprehensive restructuring – a CIO as a Service can ensure continuity and a smooth transition.
HOW DOES WORKING WITH AN EXTERNAL CIO WORK IN PRACTICE?
Working with a CIO as a Service typically involves the following steps, but can be tailored to your individual needs:
- Initial analysis: The external CIO gains a comprehensive overview of your current IT landscape, your business goals and challenges.
- Strategy development: Based on the insights gained, a tailor-made IT strategy is developed that supports your specific business goals.
- Regular presence: Depending on your needs, the CIO is present at your company at regular intervals – whether weekly, monthly or quarterly.
- Project-related support: For specific projects, the collaboration is intensified to ensure successful implementation.
- Reporting and adjustment: The external CIO reports regularly on progress and adjusts the strategy to changing business requirements as needed.
The exact details of the collaboration are agreed upon individually and can be flexibly adapted to your changing needs.
CASE STUDIES: CIOAAS IN SME PRACTICE
- Construction industry: A CIO developed a digitalisation strategy for the introduction of BIM software and mobile time recording. This optimised project planning and reduced administrative effort.
- Retail company: An assessment of the IT infrastructure revealed security gaps. The CIO initiated measures to ensure GDPR compliance and improved data security for customer data.
- Technology start-up: An external CIO took over project management for the selection and introduction of an ERP system, including interface management and employee training, ensuring a smooth transition.
MTF: YOUR PARTNER AT YOUR SIDE
Strategic competitive advantage for SMEs
At a time when digital transformation is not just a buzzword but a business reality, even small and medium-sized enterprises cannot afford to forego strategic IT management. CIO as a Service offers a pragmatic and cost-effective way to close this skills gap.
With this flexible model, SMEs can benefit from the same strategic IT expertise as large companies without making long-term commitments or incurring disproportionate costs. An external CIO not only brings technical know-how to the table, but also acts as a valuable strategic partner who supports your company in using technology as a competitive advantage.
In an increasingly digitalised business world, this approach can make the decisive difference between companies that seize digital opportunities and those that are overtaken by technological developments.
Would you like to find out how CIO as a Service can specifically support your company? Contact us for a no-obligation consultation and discover how strategic IT expertise can advance your business.
FAQs
- How much does CIO as a Service cost?
The costs depend on the effort and scope involved. Typical rates are daily or monthly rates – with a clearly calculable ROI.
- Is the model also suitable for very small companies?
Yes – even companies with 20 or more employees can benefit greatly, especially when it comes to projects or strategic decisions.
- How quickly can a CIO get started?
Within a few days of an introductory meeting. The onboarding process is streamlined.
- Who takes on operational tasks?
Day-to-day business usually remains with internal staff. The external CIO is responsible for strategy, management and expertise.
- Does the CIO become part of the management team?
Yes – the CIO usually works closely with the management and participates in management meetings.
- How is confidentiality ensured?
Reputable providers work with clear NDAs and guarantee absolute confidentiality.
- How does an external CIO help with compliance with data protection regulations?
A CIO as a Service is familiar with the current regulatory requirements – from the Swiss DSG to the GDPR and the EU Data Act. They analyse where there are data protection gaps in the company and develop concrete measures for compliance. These include setting up data protection management, secure data flows, clear responsibilities and the selection of data protection-compliant tools and providers. This minimises the risk of sanctions and strengthens the trust of your customers.
- What distinguishes CIOaaS from traditional IT consulting?
IT consultants provide specific recommendations, often technology-related and project-oriented. A CIO as a Service, on the other hand, acts like a temporary internal IT manager: they develop a holistic, business-oriented IT strategy, support its implementation and maintain close contact with senior management on an ongoing basis. The focus is on leadership, responsibility and long-term impact – not just consulting.
[1] https://www.jobs.ch/de/lohn/?canton=ch&term=chief+information+officer