Top Reasons to Consider Build-Operate-Transfer (BOT) Model in Software Outsourcing
For large enterprises deciding to move forward on the path of IT, software outsourcing is a strategy geared toward saving costs while not compromising on quality. Unfortunately, there is a big challenge in finding a reliable, adaptable, and flexible outsourcing partner- someone who understands the pre-existing processes and identifies with the company culture. As a result, some companies look forward to implementing an efficient build operate transfer (BOT) model, which enables partners to build and manage an outsourced unit.
As per the definition by Gartner, “BOT is a contractual relationship in which a parent organization hires a service provider to establish, optimize, and run a business process service offshore with the stipulated intent of transferring the operation to the parent company as a captive center.” Thus, the BOT outsourcing strategy guides and maintains the offshore team until they are well-adapted to the company methodologies, processes, and tools before transferring the control to the parent organization. Therefore, you have the leverage to try before buying, which means enterprises do not need to invest much in offshore teams unless they realize their worth.
So now, let’s decipher all three phases of the model:
- Build: The initial phase of the BOT build-operate-transfer model includes activities such as defining the qualifications and needs of the workforce. It involves everything ranging from talent acquisition procedure and approval of reporting process to building infrastructure and core team capabilities. In this phase, trust rapport forms between the company and the consulting firm, and the project starts.
- Operate: In this phase, the project management begins. It includes expanding the in-house team aligned with client requirements while spurring innovation for developing new products and services. Additionally, it involves implementing key business processes to achieve an ideal level of enterprise maturity and technical abilities of the team.
- Transfer: The final phase involves transferring project ownership to the client. This phase includes asset transfer and some handover processes.
Reasons to Choose the Build-Operate-Transfer (BOT) Model
With so many options that customers have when it comes to outsourcing, it can be a tough decision. Here are a few reasons why choosing the build-operate-transfer (BOT) model is ideal.
Cost Efficiency
Running a successful business involves saving money, spending it on the right resources, and gaining profits. Hence, BOT build-operate-transfer model is one of the best ways to cut expenses. Since the project team is managed and operated by an offshore group, it can save up to 60% on standard costs. The savings can enrich and develop business processes or be used to recruit talented resources.
High Level of Alignment with Company Culture
One of the problems the companies face with typical outsourcing is maintaining company culture and keeping their way of working intact. The BOT model offers a good solution for this problem. You need to showcase your best practices, company values, and communication framework from the start to familiarize your offshore team with how the parent company operates.
Complete Control Over Processes and Operational Structure
Another great benefit of the BOT build-operate-transfer model is that your offshore team can use the existing project management processes as the parent organization. All it takes is agreeing with your consulting firm on your operational structure and processes, and you will have an offshore team perfectly aligned with your business processes.
Greater Agility and Ability to Scale
The pandemic proved that enterprises must stay agile and respond fast to changing circumstances to thrive in the rapidly evolving marketplace. This is again where the BOT build-operate-transfer model can help you. By implementing this model, organizations can scale their operations quickly through a wide range of services to remain flexible and competitive.
Faster Time-to-Market
Globally distributed teams in different locations or time zones help to reduce the time-to-market for products and services since the process cycle becomes 24/7. Moreover, because the development is uninterrupted, it fully utilizes every hour of the day.
Access to Booming Technologies
A talented and experienced offshore team allows the parent organization to introduce the latest technologies. Access to these technologies is an added advantage that often improves process efficiency, engages, and retains employees within the organization.
How Does the BOT Model at ANSR Work?
The ANSR BOT build-operate-transfer model enables you to set up Global Capability Centers (GCCs) in the ‘build’ phase and then leverage GCC-as-a-service to support ongoing GCC operations across multiple business functions in the ‘operate’ phase. Once the offshore team is well-adapted to company methodologies, tools, and culture, ANSR transfers control of the GCC organization in the ‘transfer’ phase. Meanwhile, ANSR also helps clients build a team of top talent- right from sourcing candidates to interviews to due diligence and hiring. Our talent acquisition solutions conduct in-depth candidate assessments based on AI searches to deliver only the best-fit profiles and provide continuous engagement, L&D, and community activities to maximize happiness and productivity while minimizing attrition.
The Future of the BOT Model
Build-Operate-Transfer (BOT) is a great alternative to traditional software outsourcing. It keeps business operations and knowledge in-house while enhancing flexibility and scalability for a competitive edge. ANSR collaborates with organizations to share ideologies, methodologies, and approaches so that you can focus on developing other core business operations. We have extensive experience setting up offshore locations for clients, supervising offshore operations and development, and getting things done before the transfer of ownership.
