More and more companies are considering IT sources. They know that this can help improve the development of their IT department.
By doing this, they will be able to offer their operations to completely new markets. There are different types of IT models that are being used by companies depending on what will work best for them. One thing that they use is the BOT model.
What Exactly is the BOT Model?
What is build operate transfer? The BOT model stands for Build−Operate−Transfer. This is a type of delivery process that can be very effective. Basically, it allows an organization to get a service provider to set up its needs in another location. Build operate transfer can be effective in combining insourcing and outsourcing. The best thing about this is that with the help of an external IT provider, you will have the ability to create an overseas subsidiary. You can create your offshore or even nearshore team, depending on what you need. Through this, you will have your traditional IT outsourcing that you may be familiar with. At the same time, you can fully control your intellectual property and your business’ other technologies.
What are the Benefits of the BOT Model?
There are different advantages that you can get when you try out the BOT model. If you are not convinced yet, you should continue reading to find out more details.
- Start operations within your set time frame – Let us say that you have a set deadline in mind. The BOT model will allow you to do this possibly with the right firm’s help. You cannot do this with the use of other IT outsourcing models.
- You will get local knowledge – You will get people from where you are going to create the remote office. They will have enough local knowledge to speak about the things that they know. You may become familiar with the trends there, plus the local laws and regulations. These things will be more important to you in the long run.
- Allows more flexibility – Since the people you are going to hire are coming from different places, you can set them up anytime, depending on your business needs. They will be more flexible in adjusting to what your business requires.
- More control of the operations overseas – There was a time when people did not know how they would oversee their operations from another country. The use of the build−operate−transfer model has allowed this to become easier to do.
- Easier to align with the rest of the employees – What is one thing that is always important in business? It is a fact that you always need to be aligned with each other. You always need to know if you are on the same page or working towards the same goal. The use of this model will make it possible.
How Are Tech Companies Scaling Their Businesses with the BOT Model?
There are different companies right now that are trying to find the right business model to use. They would usually come across the build-operate-transfer model when they are trying to improve their visibility overseas.
Build
During the build stage, the IT company that will hire will be in charge of finding out what the requirements are for the workforce. They will be in charge of doing the following:
- Looking for the right people that will be hired in another location where the company will operate.
- Approving the reporting process and the creation of the required infrastructure for the company.
- Creation of the rapport between the company and the potential customers may also be formed during this stage.
Operate
This is the stage where the project management is going to occur. This is the time when the company will know if the BOT model is truly effective for them.
- The team will be expanded depending on the requirements of the customers.
- The needed processes will be implemented at this stage.
- Different team leaders are changed on an annual basis.
Transfer
This is known to be the final stage of the BOT model. During this stage, expect the following things:
- The ownership will be transferred from the partner to the client. Take note that this will only happen when the project is already over. This can also occur when the client feels that it is ready to take over.
- The transfer of assets will happen here.
- The handover process will also occur during this stage.
Companies will have the ability to hire the right IT company to source the right candidates from their chosen remote location. They will be in charge of placing these people in the office or working from home depending on your company’s requirements. Once you feel that the team is ready, you know that the transfer will be given to you.
Companies will get access to the best talent from all over the world. You will have your own office in a different location, which means that you can get more customers from there. You can potentially target the booming economy of another country at the right time. You will have the best employees from there that will help your business improve more.
Conclusion
This IT outsourcing engagement model has always been considered by many companies that would like to expand. This works well for companies planning to develop an IT team that can be hired for a long time. If you know that your company has data that cannot be shared or that there are compliance requirements that you need to protect, this is one of the best models to use. By using this model, you can have more control over your enhanced resources. At the same time, you can continue improving the software development facility that you already have.