The build-operate-transfer model has taken the outsourcing scene by storm; given its indisputable advantages, BOT has extended its area of use, from the collaboration between the public and private sectors, to the outsourcing arena, in which it has proved to be an excellent solution for companies that wish to grow.
This outsourcing practice gives businesses that turn to it, the opportunity to take over a fully functional entity that is located in a different country, without having to deal with the complex and challenging process of setting it up. And without having to tackle the obstacles that come along with establishing and organizing the subsidiary as well.
When it comes to its mode of operation, BOT contains everything you need to know regarding the way that it works, right in its very name; thus, the model implies three phases, the built, operate, and transfer phase. Vendors that engage in such contractual agreements, have the obligation of setting up, running the established subsidiary, and transferring the entity, along with all of its assets and rights that surround it, over to its clients.
So it is clear, even by only looking at the definition of BOT, that this outsourcing strategy saves contracting companies tons of resources. And on this note, let’s analyse this aspect further and see exactly how the build-operate-transfer model benefits businesses by enabling them to preserve their much needed resources.
The build-operate-transfer model is a cost-efficient solution.
By choosing the BOT model, companies, in the third and final phase of the collaboration, are presented with an entire team of experts, who have been previously carefully selected by the vendor. The latter has access to an already built talent pool, and can provide its clients with the desired appropriate experts; thus, hiring companies get to save up on labour costs, and it does not end here. Contracting businesses avoid expenses that revolve around the recruitment process, along with those occasioned by onboarding and training as well.
Going further, we have to mention that the build-operate-transfer model does not only offer short-term cost savings, but it also provides hiring companies with long-term cost reductions. The acquired talent can speed up and streamline processes, accelerating time-to-market, while, at the same time minimizing errors and avoiding costs that would have arisen throughout a delayed project.
BOT saves time.
Establishing an IT subsidiary in a completely different country is a difficult task, but luckily, you do not have to waste any time searching for office spaces, setting up networks, acquiring equipment, or doing anything that office maintenance implies. Instead, the vendor will be dealing with all of this, and because the contracted party already knows the lay of the land, you will have your entity up and running in no time.
When it comes to your remote team’s members, by leaving recruitment and onboarding in the vendor’s hands, you will not only be saving up on labour costs, as we have seen before, but you will also be avoiding spending time on these tiresome processes. On top of this, your remote specialists will be prepared to continue working on your projects seamlessly, even after the subsidiary is transferred to the hiring company. In this sense, there is no need to allocate any amounts of time to accommodation, as the newly acquired professionals will already be up to date with your working styles and objectives.
BOT allows companies to manage resources more efficiently.
Given that the build-operate-transfer model enables contracting businesses to save tons of resources, hiring companies can redirect their time, money, management resources, and attention more towards core activities. And companies have everything to gain from this.
From the investments in better equipment or those in digital transformation, to the fresh perspective that internal employees may gain, as they have more time to be creative and come up with innovative ideas, the BOT model enables businesses to focus more on essential matters and thus, come closer to achieving their goals.
Out of all the methods of outsourcing that are available out there, the BOT model definitely stands out. It isn’t what one may call a traditional practice, but the advantages that it offers have surely made it one of the most appealing solutions for businesses that are planning to expand. The build-operate-transfer model allows hiring companies to save up on costs, time, management resources, and energy, while these contracting businesses can dedicate more of their focus towards core operations.
Backed by 350+ IT consultants, over 250 delivered Agile projects, and over 10 years of creating successful project teams for customers in various industries, TechTalent is the go-to company when deciding to resort to the build-operate-transfer model.