Use the BOT (build operate transfer model) of IT Outsourcing to establish an overseas IT subsidiary for your business at greatly reduced cost and risk.
As we know that The build-operate-transfer model is about taking the concept of a long term outsourced service, traditional in the Managed Services space, and addressing it in a way that allows the customer to get value out of the services at the end of the engagement. It’s also a way to address challenges within the IT operational team that feel like their services are being replaced by outside services.
You need a way to be able to transfer those services but get value out of what you have been consuming in the previous term. That’s what the build-operate-transfer model is all about.
BOT Models are experimented by organizations for their new products and services where the product development could be outsourced to a company and the company takes full ownership of building team, quality and application systems. Executes the business for a period of 1-2 years and transitions the system along with a workable business model to the company.
Often, the software outsourcing build operate transfer model aids until the team is adapted to the company’s methodologies, processes, as well as tools before taking full control of the team.
3 Phases of BOT Models:
The Build operate transfer model have 3 phases they are :
In this phase, there is much activity concerning the setting up of the operation unit. setting up and installing infrastructures such as IT devices, Internet, computers, among other things. In this phase staff employment happens, as well as setting up the legal framework, and putting together administration.
During the operate phase, this is where management of the project occurs. This includes development of the projects or products, management, enhancements, maintenance, as well as product support.
In addition, there is much team coaching and personnel development that happens until the ideal level of business maturity and technical capacity of the team has been reached.
During the transfer phase, the final transfer of project ownership is done from outsourcing partner to the client. However, this happens only when the client has declared that it is ready to fully take control of the project, or when the contract has expired.
In summary, your BOT (Build Operate Transfer) outsourcing partner’s support will include the following activities:
- Procurement of office space and the required facilities
- Legal registration of the business in the foreign country
- Recruitment, hiring, and training of employees
- Set up of the communications and technology infrastructure
- Ensuring adherence to the selected project methodologies
- Knowledge capture planning for the future transfer
- Coordination between the different offices/geographies
Now that we’ve defined what BOT is and how it works as an IT outsourcing engagement model, we’ll explore why and how it can be advantageous for many businesses. Let’s start by looking at how BOT differs from the more traditional dedicated team or dedicated delivery center (DDC) model.