5 Reasons Municipalities are Choosing to Hire an Outsourced CIO - Hartman Executive Advisors

 

Across the country, municipalities are embracing the potential of a technology-driven government. Central to this transformation is the role of the Chief Information Officer (CIO).

In today’s data-driven world, the role of the modern CIO has expanded far beyond traditional IT management. CIOs are now tasked with navigating a rapidly evolving IT ecosystem, addressing critical issues such as cybersecurity and data privacy, while also playing a strategic role in shaping technology-forward communities.

 

With limited resources and bandwidth, many municipalities are choosing to outsource the CIO role.  Below, we highlight five benefits that municipalities gain by hiring an outsourced CIO instead of a traditional full-time employee.

1. Financial Efficiency and Cost Savings

CIO outsourcing helps ease financial pressure facing municipalities by providing IT leadership at a fraction of the cost of hiring a full-time CIO. The savings on salaries and benefits can be repurposed in many ways but are often used to help reduce technical debt.

By outsourcing the role, government organizations are able to afford a more senior, experienced CIO who can focus on developing and executing a strategic IT plan.  An effective CIO can offer strategic guidance in areas like software vendor selection and IT portfolio management, which can help municipalities increase efficiency and minimize risk. They also play a crucial role in formulating the IT budget, prioritizing projects with the highest potential ROI.

2. Access to Specialized Expertise

Outsourced CIOs bring a wealth of experience from various industries, providing well-rounded, practical solutions to address government technology challenges. In addition to the outsourced CIO, IT leadership firms can provide municipalities access to a broader team of technical experts, including specialists in cybersecurity, AI, machine learning, data strategy, and more. These experts don’t just offer advice from afar; they actively integrate with the municipality’s IT team, working together to design, implement, and refine impactful IT strategies.

3. Independent and Unbiased Decision Making

Personal interests, differences in opinion, or competition can sometimes lead to biased decisions. An outsourced CIO brings an independent, 3^rd party perspective that can help to navigate the dynamics of office politics and overcome bias. 

A fractional CIO comes in as a neutral party whose sole mission is to use technology to empower the municipality to achieve its objectives. They are not influenced by internal dynamics, nor do they have external affiliations with vendors and service providers, ensuring their recommendations are always based on objective criteria and what’s truly best for the organization.

4. Enhanced Technology and Innovation Integration

One of the primary responsibilities of a CIO is to prepare the municipality for innovation. Whether the CIO is outsourced or in-house, fostering a culture of innovation is critical to the success of any government entity. This is often achieved by creating a partnership between business and IT, which helps address concerns about new technology and encourage stakeholders to embrace change. Recognizing that new technologies come with both risks and rewards, CIOs guide municipalities through responsible adoption, aligning innovation with established risk management frameworks.

5. Improved Risk Management and Compliance

With the expansion of a municipality’s IT capabilities, the risk surface also broadens. Outside of the Risk Manager, the CIO is one of the main risk owners in municipalities, responsible for improving technology risk management and compliance.