Hello, fellow business owner. Grab a coffee, and let’s talk about something that might be on your mind—do you really need a Chief Technology Officer (CTO) for your small or medium-sized enterprise (SME)?
Or is there a simpler, wallet-friendlier way to tackle your tech needs?
Spoiler alert: For most of us, a full-time CTO is like buying a Ferrari when a reliable sedan will get you to work just fine. Let’s break it down together.
Imagine yourself managing a small and medium-sized enterprise (SME), which could be a comfortable online store, a resilient logistics company, or a marketing team that is achieving success. You’ve got dreams—maybe a slick app or a website that doesn’t look like it’s stuck in 2005.
Naturally, you think, “A CTO could make this happen!” It’s tempting, right? A tech guru strolling in, waving a magic wand to solve all your digital headaches. Plus, let’s be honest—it’s a great title to drop at networking events.
However, it's important to note that hiring a full-time CTO in Malaysia can range from RM10,000 to RM20,000 per month, depending on experience and company size. That’s up to RM240,000 a year—enough to make your accountant choke on their teh tarik.
For many SMEs pulling in, say, RM1 million in revenue, that’s a quarter of your earnings tied up in one salary. Unless your business lives and breathes tech, such as if you’re coding the next Grab, your CTO might end up sipping coffee and sketching “strategic roadmaps” while your website crashes.
You don’t need a full-time visionary; you need someone to keep the lights on and the servers humming.
Now, picture a different approach. Instead of hiring a full-time CTO, you have an IT consulting firm or a team of freelancers you can count on when technical issues arise. No need for a corner office or a hefty payroll commitment—just a reliable team that steps in when needed, bringing expertise and solutions without the overhead.
Let’s say your e-commerce site tanks during a big sale. Panic mode, right? An IT partner could have it back online in a day for RM2,000 to RM5,000, depending on the chaos. Compare that to your RM20k-a-month CTO, who’s probably busy drafting a PowerPoint on “resilience frameworks” while your customers bail.
The magic here is flexibility. Your tech needs aren’t a flat line—they spike and dip. Some months, you’re smooth sailing; others, you’re dodging server meltdowns or rushing a software upgrade.
With an IT partner, you scale support up or down as needed—no paying a fat salary when it’s quiet.
Similar to hiring a GrabFood rider, you don't need to keep them on staff all day, but they are always available when you need them.
Let’s be practical. Most SMEs aren’t tech giants. You’re not developing AI to compete with ChatGPT or managing a massive data empire.
Your tech needs are straightforward—keeping the website running, securing customer data, and maybe automating invoicing so you’re not buried in spreadsheets.
A CTO’s role is all about strategy—setting long-term tech direction, leading development teams, and impressing investors with terms like “disruptive innovation.”
That’s essential if you’re building the next big tech startup, but if you’re running a 15-person company focused on delivering orders, it’s like hiring a Michelin-starred chef just to cook breakfast.
Take this real-world example. A small logistics company in Kuala Lumpur—let’s call them Speedy Haul—brought in a CTO to “modernize” operations.
Six months later, they had an expensive app their drivers refused to use (WhatsApp worked just fine), and the CTO was pitching blockchain solutions when all they really needed was a better GPS system.
The total cost? RM150,000 gone.
Eventually, they let the CTO go and hired an IT consultant for RM10,000 to fine-tune their system. The result? Happier drivers, smoother operations, and higher profits.
A CTO might give you a grand vision, but the right IT partner solves your problems—without the hefty price tag.
Let’s break it down. A full-time CTO at RM20,000 per month adds up to RM240,000 a year. Factor in hiring costs, benefits, and the occasional team retreat, and you’re looking at closer to RM300,000 annually.
Now, compare that to an IT partner. Depending on the scope, you might pay RM5,000 to RM10,000 per project. Need support five times a year—say, a website upgrade, security audit, and software rollout—that’s RM25,000 to RM50,000 max.
Even if you throw in a few emergency fixes at RM2,000 each, the total is still a fraction of the cost of a full-time CTO.
And beyond just money, think about the hassle. Hiring a CTO means sorting resumes, conducting interviews, onboarding, and hoping they don’t leave after a year.
With an IT partner, it’s simple—sign a contract, get the job done, and move on. No HR headaches, no difficult exit conversations.
SMEs thrive on agility. You pivot fast, chase wins, and dodge disasters. A CTO, however, locks you into their grand plan. If your business priorities change, such as shifting from app development to cybersecurity, adapting quickly may not be an option.
An IT partner provides the flexibility you need.
With a diverse team of specialists in networking, software development, and cybersecurity, they bring the right expertise at the right time. Instead of relying on a single, expensive resource, you gain access to a well-rounded skill set.
Consider a marketing agency that lands a client needing a custom dashboard. A CTO might take months to recruit the right team and develop a strategy, consuming valuable time and budget.
An IT partner, on the other hand, can pull in the right experts and deliver results within weeks.
Faster execution means quicker revenue and greater agility. In today’s fast-moving business environment, flexibility is a competitive advantage.
IT firms offer a team of specialists ready to step in when needed. Whether it’s a cybersecurity audit or a cloud migration, they have the right expert for the job. You can access a variety of skills without the overhead of keeping a whole in-house team.
A CTO may be well-rounded, but when your email server goes down, you don’t need a strategist discussing “digital transformation.” You need a hands-on expert who can fix the problem—fast.
CTOs have their role, no doubt. If your SME is scaling rapidly and tech is at the core of your business—like a fintech app or a SaaS platform—having a dedicated tech leader makes sense.
They can drive innovation, manage developers, and chart long-term growth.
But for most businesses, whether it’s a café, a warehouse, or an online store, a full-time CTO isn’t a must-have.
Instead of locking in a high-cost hire, it’s often smarter to bring in specialists when you need them—like when the Wi-Fi suddenly goes down.
Do you really need a CTO? Probably not—unless you’re aiming to dominate the tech industry. For most SMEs, an IT partner makes more sense. You get expert help when needed, lower costs, and no long-term commitments. Instead of spending RM20k a month on a visionary, you’re investing RM5k here and there on specialists who get the job done.
It’s a practical, cost-effective approach that lets you focus on what matters—running and growing your business.
Before hiring that tech rockstar, ask yourself, “Do I need a full-time genius, or just the right expertise when it counts?” Do the math, and chances are, the IT partner wins. Less hassle, more savings—now that’s a smart move.
At AXO Technologies, we help SMEs like yours tackle tech challenges without the hefty price tag. Whether it’s cloud migration, cybersecurity, or keeping your systems running smoothly, our team is ready when you need us—no long-term commitments, just expert solutions.
Let’s talk and see how we can make IT work for you.
