Expanding capabilities and establishing a strong presence in another country, represent challenging goals for any company that wishes to experience growth without compromising on quality or facing exposure to the inherent uncertainties of expansion. To therefore succeed in achieving these ambitious objectives, businesses have begun turning to a different business model, namely, to Build-Operate-Transfer, for this solution manages to cater to their every need, allowing them to reach their expansion goals and conquer new markets.
The BOT model enables companies to create the nearshore or the offshore software development team and business unit they envision, however, in order to be able to fully reap the advantages of this project delivery model, businesses must choose the location for their future subsidiary with utmost care. From the economic situation of the country that will be the home of their new software development center, to the talent pool, culture and state of the IT sector, companies need to pay close attention to various such aspects, if they aspire to find their perfect match. And this is where Bucharest comes into play, having distinguished itself as one of the hottest destinations for BOT.
So, allow us to explore the reasons behind more and more companies’ decision to partner up with a Build-Operate-Transfer services provider that operates in Bucharest, however, not before briefly explaining how BOT works.
The Build-Operate-Transfer model – what you need to know
To put it in a few words, the Build-Operate-Transfer model implies a contractual agreement, by means of which companies hire a BOT services provider, that will be assisting them in setting up a new subsidiary abroad. Vendors will be building and running this software development center, and ultimately, will be transferring the subsidiary company’s ownership, along with the team of specialists, to the hiring business. The BOT model includes three phases, the “build” phase, where service providers find and equip office spaces with the necessary infrastructure and systems, assemble teams, and ensure all legal aspects are being taken care of, the “operate” phase, throughout which developers start working on the project they have been assigned with, while vendors make sure teams are aligned with their clients’ objectives, and lastly, the “transfer” phase, where the ownership transfer of the fully operational software development center, from vendors to their clients, takes place. By adopting the BOT model, companies can leverage the knowledge of their partner, that knows the ins and outs of the local scene, tapping into the local talent pool, and significantly reducing time-to-market, as vendors’ know-how allows for the rapid set up of a new facility and software development team. What’s more, hiring businesses will avoid the risks that usually surround local law compliance, recruitment and hiring processes or payroll operations.
Bucharest – the ultimate destination for a thriving BOT partnership
Being Romania’s largest IT hub, Bucharest has been making the headlines as one of the fastest-growing European tech cities, ranking 8th, in the “Understanding European Technology Clusters” report by CBRE. The capital of Romania is also one of the top 10 largest cities in the EU, being named “the 2nd coolest city in Europe” by the French online magazine slate.fr.
In terms of the IT companies that carry out their activity in Bucharest, the city is home to over 110 software development companies, whose favorable development has had a positive effect not only on the country’s economy, but on the city’s image as well. In this sense, businesses’ need for more space, has led to an increase in the number of modern buildings, which house the required office spaces. International technology companies such as Oracle, IBM, or Microsoft have already chosen Bucharest, opening centers in the city and planning to continue expanding their presence here.
When it comes to the talent pool that one will find in Bucharest, companies wishing to partner up with a Romanian company that offers build-operate-transfer services, and that resides in the country’s capital, will be delighted to learn that the technical universities present here deliver high-quality education, and of course, stellar engineers. For the educational system in Romania is recognized for its high academic standards and ability to produce extremely competent and talented IT professionals.
There are 19 private universities and 16 public universities in Bucharest, of which the University of Bucharest is one of the top public universities in the city and the Bucharest Polytechnic University is the largest and the oldest technical university in the country and among the most prestigious ones in Romania. Over 40.000 students graduate from the universities in Bucharest every year, and over 5000 of them are specialized in IT. The latter have an exceptional theoretical background, being prepared to successfully rise to the challenges that will be thrown their way.
Going further, IT specialists’ willingness to perfect their skills is also an element that businesses should bear in mind, when considering Bucharest as their BOT destination, alongside aspects revolving around developers’ experience as well. And in this sense, Bucharest has the upper hand yet again, as most of the IT professionals present here have already worked for global companies, and have had the chance to build long-term working relationships. Moreover, the majority of developers residing in Bucharest, have shown their passion for technology, making staying up to date with the latest tools and technologies a priority, and seeking to continuously improve their skills.
And speaking of advanced tools and technologies, we must mention Bucharest’s ability to provide companies that delegate their build-operate-transfer projects here, with access to cutting-edge solutions and technology. From artificial intelligence and machine learning to quantum computing, automation, and data analytics, Romanian IT specialists have gained extensive knowledge in these areas and continue to express their interest in acquiring a deeper understanding in such fields.
Bucharest also has an excellent network infrastructure, as Romania ranks 4th worldwide, when it comes to high-speed broadband Internet connection. This favorable digital environment makes Bucharest the perfect build-operate-transfer destination and allows for successful BOT partnerships. Furthermore, Bucharest has been known to offer businesses the opportunity to establish stable relationships and develop strategic partnerships that stand the test of time. And when the unrivalled quality-price ratio that Bucharest offers is also taken into consideration, the popularity behind increasingly more companies’ choice to opt for Romania’s capital as their BOT destination, becomes even more justified.
Last, but certainly not least, we must touch upon the ability of IT professionals who reside in Bucharest, to effortlessly adapt to the culture and ways of working of any client that they collaborate with, on their build-operate-transfer project. In this sense, since Romania and countries located in Western Europe share similar values, it is only natural that IT specialists would easily adapt to Western European cultures. What’s more, seeing as how North American practices and cultural patterns, have much in common with those in Eastern Europe, Romanian IT professionals have no trouble adjusting to US cultures as well.
Conclusion
Embarking on a BOT journey requires careful planning, and choosing the destination is one of the most important steps, as this decision can result in either a positive or negative outcome. Companies that have already made their choice however, turning to Bucharest for its amazing perks, have enjoyed the city’s excellent talent pool, that is known for its variety, along with the capital’s flourishing IT sector and affordable rates, all of these advantages making Bucharest the ultimate destination for a successful BOT journey.
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