A Quick Introduction to Build Operate Transfer (BOT) IT Outsourcing

Tuesday May 7

Are you wondering what build operate transfer (BOT) IT outsourcing is? If so, you’re not alone. Now that you’re learning about offshore software development outsourcing, there’s no doubt that you’ll come across with this term. Luckily, you’ve been in the right place to find out more about this term.

What Is Build Operate Transfer and How Does It Work?

So, what is build operate transfer or BOT actually? In general, we can say that it’s a kind of contractual relationship in which particular organizations hire a service provider to arrange, optimize, and run a process of IT service delivery operation until they are ready to operate the entity fully.

In this model, there will be a local company which sets up a special team, facility, as well as IP protected environment for the clients. This model is commonly employed in the IT sector. Then, how does this build operate transfer (BOT) IT outsourcing work?

As the name suggests, there will be three phases: Build, Operate, and Transfer in this model. The Build phase involves arranging an operation unit that takes account of everything from choosing buildings, installing infrastructures like the IT devices and internet, employing staffs, and organizing legal issues.

Next, there is an Operate phase. Here the service provider will manage the offshore project that includes program development, management, maintenance, enhancements, as well as product supports. The last, there will be a Transfer phase. In this phase, project ownership is finally transferred to the clients.

It is important to understand that the project can be finally transferred to the clients if only the clients are ready to run the project themselves or if the contract is expired.  The transfer phase usually includes new offshore subsidiary, handover process, and transfer assets.

What Are the Benefits of Using the Build-Operate-Transfer Model?

Then, what are the advantages of benefiting build operate transfer (BOT) IT outsourcing? There are actually a lot of benefits that you can expect. That’s why many businesses start to take advantage of this model when they want to open an offshore subsidiary. Here are some of the benefits that you can get.

  • It saves more money

We cannot deny that business is all about saving a dollar instead of selling a dollar. In this case, the BOT model plays a great role in cutting cost in any way possible, making it an ideal choice for your business. Typically, a BOT project can save as much as 60 percent of the normal cost.

It is possible because the project is owned, run, and managed by an off-shore team. Since it can save your business more money, you can use it to improve the company employees. Besides, it can be invested in capital or be utilized to employ more people.

  • It helps your product reaches the market faster

Another benefit of a project with build operate transfer (BOT) IT outsourcing model is that it allows your product to come to the market faster. With a team of resources in another time zone, a BOT project can help your business to bring the product and enhancement to market quicker.

  • It helps minimize the risks

It’s no secret that every country has its own problem that is different from one to another. By doing a BOT project, you can lower the risk of a country by delivering diversifying investment for the investors. In addition, it also offers diversifying workplace and workforce.

In conclusion, build operate transfer or BOT is a beneficial contractual relationship that you can take into account when planning to expand your business offshore. It will save you time and money and it may lower your stress level as well. That’s all about the build operate transfer (BOT) IT outsourcing.