Is Fractional The New Full Time? Why COOs And vCISOs Are Becoming The Hidden Engines Of The Channel

The current convergence of widespread tech layoffs, rising AI adoption, dissolving government contracts, and a swelling tide of entrepreneurial activity is altering what leadership looks like in the channel. But is fractional becoming the new full time?

The IT channel is no stranger to transformation. Collectively we have become the funnel through which innovation enters the global market. And with the rise of tech layoffs, elimination of specific roles and collapsing of departments as part of global restructuring, the question of how operations continue with fewer people, but the same workload remains. But the more human-centered question: in what ways are people pivoting to new areas to ensure their personal survival in business?

Tech Layoffs As A Catalyst for Change

As of June 2025, over 80,000 tech workers have been laid off across more than 150 companies. As reported earlier this year on CRN, enterprise organizations like Microsoft and Intel have trimmed their workforces by the thousands in a push for operational agility and AI-driven efficiency. While these workforce reductions are posited as strategic from a corporate standpoint, they have had a rippling impact across the IT Channel:

Experienced leaders are being displaced without many comparable roles being available. Think about the channel chiefs, operations executives and cybersecurity professionals we know that are still without a corporate home. The emotional toll is real, and many are pivoting toward entrepreneurship or consulting.
Channel partners are being asked to do more, as vendors reduce internal headcount but increase external expectations around cloud, Copilot, and security services.
New opportunities are surfacing. While some roles are being cut, others are being created. Many of which are tied to partner strategy, technical consulting, and alliance management.

This moment of disruption has created an opening for seasoned professionals to reimagine their value—not through another full-time W2, but as fractional leaders embedded in the heart of channel business models.

What Is A Fractional COO?

A fractional chief operation officer (COO) provides strategic operations leadership to a business on a part-time or contract basis. For MSPs, ISVs, and other channel businesses, they often translate vision into scalable infrastructure while implementing repeatable systems for project delivery. A fractional COO can help with sales operations and partner success. They may also create KPIs and dashboards to support data-informed decision-making.

Yet, and perhaps most importantly, they coach leadership teams and guide hiring, onboarding, and team alignment. This operational gap can be increasingly valuable to organizations following restructuring and personnel changes. All these skills are especially valuable for founder-led companies that are scaling fast but overwhelmed by execution gaps.

In contrast to a fractional COO, a vCISO is a virtual chief information security officer contracted as a security expert to oversee cyber risk strategy, policy development, compliance, and incident response planning. In the channel, vCISOs are crucial for helping MSPs build security-first service offerings while supporting clients with regulatory requirements like HIPAA, CMMC, and GDPR. A vCISO designs security frameworks for small and mid-sized businesses, building trust with partners, vendors, and enterprise clients alike.

In a landscape where breaches can destroy client trust overnight, the vCISO has become a frontline defender of data security, business continuity and brand reputation.

Why Fractional Roles Make Sense Now

The gig economy is not just about ride-share or food delivery as supplemental employment—it’s about entrepreneurs building lean, expert-driven businesses that are flexible, scalable, and operationally remote-first. Uniquely, the IT channel is perfectly aligned with this model:

The MSP and MSSP markets are growing fast, with some projections as high as $511 billion globally in 2029.
Channel complexity is on the rise. From multi-cloud strategies to layered security offerings; partners need specialized leadership without overcommitting to headcount.
Trust is a currency in the channel, and fractional leaders often come with proven reputations, niche expertise, and adaptable mindsets.

Fractional COOs and vCISOs allow channel businesses to scale smart, stay secure, and remain nimble in a volatile and sometimes hostile market.

Consultants, This Story Includes You

Nancy Henriquez, CEO of Sibyl Consulting Group and former MSP owner, shared how her journey from corporate America back to entrepreneurship wasn’t about escape; it was about alignment.

“For me to be the head of a community, to build a community, it meant that I would get to be a part of the world that I grew up in. For me, [the MSP business] is deeply relational, completely tied to impact, and not transactional,” she said.

Henriquez emphasized that fractional and consulting work isn't just about freedom; it’s about designing businesses that reflect who we are as leaders. “I needed to run it in a way that was aligned with who I am as a person, more so than the backing of corporate America.”

In her current firm, she focuses on team alignment and values-first strategy. “The first thing I started to identify was what my purpose is, what my values are, and what my strengths are. Then I looked for team members whose individual purpose aligned with the company and the roles they play.”

For consultants navigating similar crossroads, her advice is clear: build something greater than yourself. “Money doesn’t fulfill us. It’s a tool. The fulfillment comes from seeing people take the wisdom, the knowledge, and the cost of what I’ve been through and use it to make a difference in their own lives.”

This ethos of alignment, values, and impact mirrors what many in the IT channel are also seeking—whether as service providers, advisors, or independent experts building something new.

The Hidden Engine Of Growth

The shift to fractional isn’t just a trend, it’s a reflection of the moment we are living socially. Layoffs have unanchored talent from the traditional W2-driven economy. Channel businesses are under pressure to deliver more with less. And entrepreneurs and operators alike are rethinking what success looks like.

Fractional COOs are vCISOs are stepping in to fill the leadership gap. They are not temporary hires; increasingly they are becoming critical players in a new type of growth story. The IT channel isn’t just surviving this shift; it is evolving because of it.

If you are a channel leader grappling with scale, security, or strategic clarity, remember you don’t need to go it alone. Perhaps fractional leadership may be the competitive edge you were unsure you needed until now.

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