A Build Operate Transfer (BOT) model enables companies to scale up capabilities fast and deliver value from day one. This is a great solution for companies that are ready to transform but lack the necessary capabilities or have a low budget. Learn more about Build Operate Transfer concept and how to start a BOT project.
What is Build operate transfer concept
Build Operate Transfer concept is a contractual relationship in which an organization hires a service provider to develop, optimize and run an entire operation. In this contract, it is stipulated the intent of transferring the operation from the service provider to the organization.
agave lab is your BOT partner
build operate transfer model for software companies
The main role of the BOT model is to help companies set up a separate office in a different country with the help of a local provider.
This model usually involves more common outsourcing forms such as staff leasing or co-sourcing, both of which serve as its starting point. This is most common in information technology (IT) and IT-related projects such as software development.
why you shoud consider the bot model
Your organization has decided to move forward with a new or enhanced service delivery model. You have concerns over having the wherewithal to stand up a captive center on your own, but you still want to retain more control than a complete outsourcing solution. Or you want to enhance existing offshore operations, but you don’t have the capacity.
Enter the BOT business model, a hybrid option that offers the ability to acquire essential business capabilities and the advantages of outsourcing without sacrificing control, time, and resources to build on your own.
stages of a build operate transfer project
This first stage starts with an in-depth analysis of the organization’s specific requirements, performing due diligence to understand the client’s vision, sourcing goals, technical requirements, and company culture. The outsourcing company will design the operating model, with its own resources and talent, develop a governance structure, and determining the technology and workplace needs.
The goal of this phase is to achieve a steady state of operations, standardizing operating procedures and continuously improving and reengineering processes to meet service-level agreements and realize transformation objectives.
Leveraging years of transformation experience, an experienced outsourcing partner can accelerate processes and help enable a more scalable, flexible, and digital organization with the ability to react nimbly in response to business and market changes.
Lastly, for the “transfer” stage, the company takes over the operation. Here, the outsourcing partner turns the team, processes, and metrics over to the company. They may still rely on their outsourcing partner for support under a new engagement model or fully take over the operations.
pros and cons of the bot model
pros of the build to transfer model
- Short setup time: Companies save time and effort in building their team on their own. As a result, they can focus more on building up strategies to make their business grow.
- Shared knowledge and resources: Clients can learn from their outsourcing company about setting up a team. They even share the resources used during building and operation.
- Access to a larger talent pool: Hiring an offshore provider allows them to access a large talent pool of employees. With this, they can have a wider insight into how a task is done.
- Low building and operation risk: With BOT, they won’t have to worry about the documentary requirements they need in building and operating an offshore team. AgaveLab will do it for them.
cons of the bot model
- Long-term employee retention: Upon transfer, employees require long-term retention to the company. This setup is not ideal when a role has a specific demand and they decide to scale down.
- Operational retention risks: When a team transfers, companies should comply with the stipulated processes and documentation.
- Cultural differences: Lastly, companies and their offshore teams might experience culture shock since they come from different countries and cultures. To prevent this, nearshoring might be the best option.