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Build Operate Transfer (BOT) Model The next big move in Offshoring

Although the BOT Model projects went out of fashion, due to the post-pandemic economic setbacks faced by most businesses worldwide, it has gained much interest lately. In fact, in India, the national highway projects making use of the Build Operate Transfer is estimated to have the least financial burden on the government. This almost sounds like a perfect headway for private sectors to once again kickstart their operations. But save for public undertakings, recent years have also seen the soaring popularity of BOT Model in IT industry. In these uncertain times, if you are only up for short-term investment and a long term re-prioritization opportunity, then BOT is for you. Or if you wish to gain visibility in an international market, then again BOT is for you. Come, let’s take a closer look at the commercial underpinnings of this outsourcing model. How about answering all your questions one-by-one?

Q1: What is the BOT Model in Software Outsourcing?

It’s a procurement system whereby an organization approaches a franchisee (outsourcing partner) to develop a centre including the investment of capital, hiring the staff and setting up the complete infrastructure to run the business processes. The third-party service provider is allowed to generate revenue from the facility for a A complete view of BOT Model in IT industry predefined period, after which it is transferred back to the enterprise owner at no cost. The two parties involved are benefited immensely. Your enterprises can cut down the upfront investment costs, operational risks, managerial and supervising processes and enjoy a speedy presence into the market. Now, here comes the sweet deal. Most companies pulling up their socks with the BOT model have plans to run their businesses in another country – as a foreign subsidiary. Well, who wants to get held up with long procedural requirements to set up an offshore branch? In that case, BOT is the right solution when it comes to outgrowing your organization without making a wrong move. It helps you get rid of all the paperwork and the risks that newbies have to deal with. Your offshore team is later handed to you when it’s fully operational level. Just like companies carry out offshore software development to budget on spending, here an entire offshore unit is taken full control of. Meanwhile, the outsourcing vendor can earn a high potential profit from a successful BOT project.

Q2: How does Build Operate Transfer work?

This integrated partnership travels about three years before your service delivery model is later brought in house. And this time is divided through the various phases of the BOT model which just like the name is divided into the Build, Operate and Transfer Stage.

Build 

The initial set up of the offshore or nearshore operational unit takes place during the build phase. To begin with, the offshore location is decided and the service provider does an in-depth study of your business goals and requirements and makes a good note of the company culture. Once enough data is gathered regarding the company’s expectations, the outsourcing partner goes on to set up the infrastructure including the office space, IT devices needed for your project and the Internet and defining the qualification benchmarks of the workforce. After which the staff employment happens, the legal framework is laid and the administration is formed. This phase takes an average of around 2-3 months to complete with the project kick-starting and a strong rapport established between the customer and contractor.

Operate 

Now, the foundations are in place and the management of your project is supposed to happen. The unit begins to function in full swing towards the products and project fulfillment. Build-Operate-Transfer (bot) development company in Bangalore All the day-to-day operations are taken care of including bringing the team together to work cohesively and efficiently. In some cases, staff augmentation is done to work with the external team to reach optimum targets. Even lead programmers and team leaders for the offshore branch are allocated during this phase. Once the team is expanded, all the activities are carefully monitored by the service provider to keep you updated and remain transparent about the progression. All the roadblocks to productivity are identified and resolved through appropriate measures backed by sound reporting on a regular basis. During the operating phase, the franchisee also makes sure that the employee needs are met including their sick leave and vacations. They are also kept motivated during the course through training and guidance to cope with any kind of transition. All kinds of maintenance and product support are also given by the vendor until the team makes it to the technical capacity and maturity you desire. Most BOT projects take a year or two to complete this stage successfully.

Transfer 

This is the last and final phase where you get to review the current level of maturity and decide to take complete control of your outsourcing unit into your own hands. Now the assets are transferred and completely handed over to you with the paperwork and legal matters closely managed. It’s up to you to decide if the staff has to be hired as full-time employees or not.

Q3: What are the BOT Model Benefits to name a few?

With Build-Operate-Transfer being the buzzword of software outsourcing, there’s no doubt that at the end of the day it leaves you questioning about the possible benefits. Well, not anymore.

Cost-effective and time-saving 

Isn’t this one of the most important benefits that any entrepreneur can ask for? There’s no other outsourcing model that can promise you a complete functional branch within a stipulated time frame. And in turn, when you spend less of your time trying to figure out the operations of a branch you can get rid of much of the expenditure that goes into getting your job done. Businesses very often switch to the BOT approach also with an aim to expand their capabilities in countries with top talent but lesser cost.

Gains on a Longer Run 

Since you get full-time assistance by experienced outsourcing partners,the infrastructure and team is going to offer high-quality output for an extended period of time. The vendor’s expertise, administration capabilities and risk management skills will prove immense value in the future which even when transferred to you will remain financially unquestionable.

Higher Employee Retention

The talent teams that are built with the BOT model often stay together for a longer period of time. Why? It is simply because the hiring and team building happen outside of traditional tech hubs with less competitors to snatch them away from you. All in all, BOT reduces your risk of losing your best-bred employees.

It wouldn’t be fair to only reflect on the positives of BOT because as an outsourcing initiative it has its own side of bad luck too. But If I took a moment to compare the pros and cons of Build-Operate-Transfer, the cons are almost negligible if you can get hold of a trustworthy outsourcing franchisee.

Q4 What are the variations of the BOT Model?

The different ways in which BOT works is identified according to the requirements of the project. For instance:

  • Build Own Operate (BOO): A part of an organization’s operations are owned and operated by a service provider. This is more like the BPO companies operating in different countries.
  • Build-Own-Operate Transfer (BOOT): Again a private company operates a facility to offer the best ROI to the parent company and in turn enjoy margin profits on the project.
  • Build-Lease-Transfer (BLT): Healthcare institutions commonly employ this method. A company signs a joint venture agreement with the public sector to own a particular project. After a minimum of 10 years, the project is leased back to operate as a business entity.
  • Build-Lease-Operate Transfer (BLOT): An unit is built and operated by a private firm on land leased by the public.  Once the lease duration expires, the entire leased land is transferred back to the respective owner.

Why is Pattem Digital your go-getter for the best BOT services? 

Any startup or seasoned business owners would only confide in a trustworthy partner for their build-operate-transfer (bot) development services. And Pattem Digital offers such a BOT model to help overcome all the challenges with high-quality technical output at a good cost. Regardless of the geographic location, operation domain or organization specifics, we help you reach out to a full-fledged operational unit. We are here to make your inshore or offshore outsourcing a reality. Let’s discuss how you’d like to grow!

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