Fractional CTO vs Outsourcing Agency: What's Better for Your Project?
Build your own team with technical leadership or outsource development? Let's explore the pros and cons of each approach.
Comparison Table
| Feature | Fractional CTO | Outsourcing Agency |
|---|---|---|
| Code control | Full | Limited |
| IP ownership | 100% yours | Requires agreement |
| Flexibility of changes | High | Via change requests |
| Expertise accumulation | In-house | With contractor |
| Team scaling | Gradual | Fast |
| Monthly cost | $15,000-50,000 | $20,000-100,000 |
| Vendor lock-in risk | No | High |
| Launch speed | Medium | Fast |
When to choose each option
Choose Fractional CTO if:
You want to build your own team and product
- Technology is your competitive advantage
- Planning long-term product development
- Want to control code quality
- Important to accumulate expertise in-house
- Preparing for investment (investors prefer in-house teams)
- Need flexibility to change direction
Choose outsourcing agency if:
Need to quickly get a working product
- MVP to test a hypothesis
- Standard project without unique technology
- Limited budget and timeline
- No plans to hire own team
- One-time project without long-term development
- Need a ready team right now
Cost Comparison
Cost of developing MVP over 6 months
Fractional CTO
Fractional CTO$30,000
2 developers$72,000
DevOps/infrastructure$12,000
Tools and services$6,000
Total:$120,000
Outsourcing Agency
MVP development$80,000-150,000
Project managementIncluded
Scope changes (+20-30%)$20,000-40,000
Post-launch supportSeparate
Total:$100,000-200,000
Help Me Decide
Answer questions to determine the best approach
Question 1 / 4
Is technology your competitive advantage?
Frequently asked questions
Let's discuss your project
Start with a free 30-minute consultation. We'll discuss your goals, challenges, and determine how I can help.
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