As technology moves forward, we see many industries having to make adjustments to their old ways of doing business. According to ZDNet, 70% of companies either have or are working on a digital transformation strategy.
For years now, businesses have been forced to adopt new tech to keep up with their customers’ expectations. Following the first stay-at-home order issued during the COVID pandemic, there was an increased demand for e-commerce and ongoing website enhancements for businesses suddenly facing an inflow of digital rivals.
Businesses want control over their digital future. This is where the Build, Operate, Transfer (BOT) model has a significant role in helping companies scale, develop new capabilities, and stay competitive all while saving on costs and resources.
The BOT Model for IT Teams
The BOT model is popular among businesses that use offshoring. In short, the client can manage and keep track of their project as it is developed by a service provider. Once complete, the service provider will transfer it back to the client.
Although they share this general structure, the BOT model and outsourcing are not the same. The model works like this: a business entity (the client) retains another organization (the vendor) to hire, train, and operate an IT team, often in a new territory or country. The newly built team will work with the client to complete tasks and projects as a third-party entity. At any time, the business can bring the team on as their employees.
As companies evolve, so does their need to grow their product and invest in technology. At the same time, other operational priorities put pressure on cash availability. As a result, the Build, Operate, Transfer (BOT) model has been a solution to some companies as a way to finance projects.
Advantages of the Build, Operate, Transfer Model
Those who employ the BOT model are typically companies looking for extra IT staff, or they are startups looking to expand their workforce at a lower cost. These businesses may not have the time or finances to create an office, recruit a team, and so on. This is especially true if the firm is trying to grow its workforce in an overseas market. Many industries can find success in this model as a way to bridge the skills gap within their company while eliminating the recruiting time and expenses to find qualified candidates.
Access to a Global Talent Pool:
A good partner that offers the BOT model for IT services will have access to high-quality talent in several global locations.
The company offering the BOT model builds an IT services operation from the ground up. This process includes the set up of the operation and hiring employees for the job as well as working out legal and administrative information.
When it comes to hiring people, the firm that provides the BOT model considers the client organization’s needs to find the best applicants for the team. They discover the talent while saving you the costs of forming a legal entity in that country. With employees working in different time zones, your firm can provide coverage 24 hours a day, seven days a week.
Save on Overhead:
The provider will run your IT services and take care of all aspects of team management. This includes assisting your remote IT operation in seamlessly launching and then scaling up swiftly and effortlessly. In this stage, every role of management is involved, eliminating administrative, accounting, and legal overhead costs. In addition, companies who implement the BOT model avoid the hassle and long-term commitment of leasing office space and arranging services such as utilities and internet.
They are Your Team:
When you are ready, the company will transfer the remote IT team to you. The company acquiring the new team is assisted with every step of the transition, from locating the office space and securing utilities or finding additional vendors when needed. Best of all, since this is the same IT team from day one, the acquiring company is already familiar with the team and how they work.
Disadvantages of the Build, Operate, Transfer Model
It is hard to put an exact price on how much shifting your company to the BOT model will cost. It is specific to each project’s scope and constraints. Although the BOT model is designed to save costs by using outsourced employees, it is difficult to put an exact price upon initial inquiry.
Take into account the number of developers working on your R&D center, the cost of equipment, and your multiplier, which should decrease with time. If you’re thinking about using the BOT model for your firm, speak to a BOT model service provider about your specific situations.
Adjusting to Change as a Company:
Changes within a company can be difficult to address.
To get ahead of the fear or uncertainty amongst your current employees, be open to talking to your employees about the transfer and what it means for them. Answer any queries they might have regarding the expansion and introduce the new remote crew to your local staff. Discuss how the two should communicate and who should be the point of contact. According to Bluescource, organizations with linked employees enjoy a 25% increase in productivity.
Choosing a BOT Model Company:
Overall, the BOT model can be a great strategic move for your company. Keep in mind to successfully build, operate, and transfer the team, you must do thorough research to partner with a service provider who you can trust. Having an experienced company to answer questions and make the best decisions for your business can save you time and money.
How TechGenies Can Help
Whether your business needs a technology partner to provide consultation on the right solutions or a full team of top talent engineers to launch a custom software development project, TechGenies is here to help. Our teams are virtual in many cases, so we know a thing or two about getting the right tools in place. Contact us at email@example.com to get started boosting the resources your business has in place for virtual teams.
*Organizations operating in the US with greater than 3 employees.
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