Scaling Smart - Why Build-Operate-Transfer (BOT) is the Future of Business Growth

There’s new businesses being set up every other day, many succeed, many fail, many take years to take shape. Be it starting a new business or venturing into a new market, it is a behemoth task, involving a wide range of human as well as financial resources. Fortunately, there is a tactic in business which is the Build-Operate-Transfer (BOT) model, which takes care of a lot of the hassles involved in business growth. It is an elegant way of scaling businesses, building new capabilities, and staying ahead of the competition, while saving costs and resources. BOT is a widely popular arrangement made between two parties - referred to as the client and service provider, where the latter designs, develops, and operates a specific project or service. Eventually, the project is transferred back to the client. This model has helped many businesses succeed over the years in other sectors. Today, it is being widely adopted by the tech industry to build a software team offshore or expand offices in new locations. By embracing this model, businesses can be empowered to optimize their operational efficiency as well as business strategy, enabling them to achieve sustainable growth and get a competitive advantage.

What is Build-Operate-Transfer?

The BOT model comprises three important phases:

Build - In this phase, the service provider assembles an operating unit, ensuring compliance with local regulations, while defining the project’s scope. This step covers everything right from setting up the office space, hiring the team, establishing infrastructure for the office, to legal formalities.?

Operate - The service provider completely manages the offshore team, ensuring it aligns with the client’s objectives. There is continuous collaboration between the client and the service provider to ensure alignment with service delivery and operations. The service provider takes care of the established team and handles the day-to-day activities, offering ongoing support, along with daily maintenance.

Transfer - In this final phase, the service provider transfers ownership to the client company. The seamless transfer includes passing over all assets, teams, and even intellectual property. The service provider usually offers extended support to ensure continuity, however they may sometimes charge a one-time transfer fee.

Staff augmentation Vs Managed services Vs BOT?

The BOT model has several advantages over other outsourcing models such as staff augmentation and managed services. While staff augmentation is mainly about finding immediate solutions with lower financial risk, BOT operates on a shared model, eventually transferring ownership to the client. Managed services is usually an ongoing process involving a wider range of tasks, BOT is mostly used for larger projects where clients get complete control.?

Here’s a detailed comparison of the models:

Why should businesses opt for the BOT model?

Choosing the BOT model is a great option for businesses, especially the ones that are on a growth path as it allows a structured approach to scaling operations. This model facilitates immediate access to niche talent, along with required infrastructure, all this while sharing the risk with the service provider. This enables businesses to focus on other core activities while eventually gaining complete control of the project once it's established. Here are some of the main benefits of adopting the BOT model:

1. Access to specialized knowledge and skills - The model gives businesses access to specialized talent as well as skills and technology as it may not always be available within the organization immediately.

2. Cost savings - Opting for BOT eventually results in reduced overhead costs as businesses can leverage the service provider’s resources and infrastructure, ensuring the day to day operations of the businesses are uninterrupted.

3. Operational efficiency -? By taking up the day-to-day operations as well as maintenance, support and performance management, the service provider enables businesses to have that extra valuable time to focus on their core functions. Additionally, partnering with a reliable service provider can lead to higher productivity, enhanced performance and therefore, maximum profitability for businesses.?

4. Ability to scale rapidly - Businesses can cater to their growing needs by taking the BOT approach and expanding the team and infrastructure without any hassles of building everything from scratch.

5. Shorter TAT - With service providers offering to quickly mobilize a skilled team that’s ready to operate immediately, businesses can accelerate their project deliverables.?

For businesses across industries ranging from infrastructure development, outsourcing, to technology expansion, the build-operate-transfer model is turning into a game-changer! By understanding the intricacies of BOT implementation and its benefits, businesses can achieve sustained success and remain ahead of the competition.?