The demand for qualified and deep expertise in today’s market is higher than ever. Especially these qualities are needed in the IT market. The creation of new development centers, IT support departments, and customer service units require a certain amount of experience and qualifications. In this case, such an area as build-operate-transfer comes to the rescue. This type of outsourcing allows businesses to launch IT departments to work with maximum benefits and minimum losses.
What Is BOT and How Does It Work?
BOT meaning is a build-operate-transfer model. It is a separate type of outsourcing. BOT definition is the hiring of a contractor to set up a company’s IT department. At the same time, BOT has its own characteristics. The BOT model provides that the contractor not only creates an IT structure for you, but manages it for a certain time, and then transfers it under the full control of the client. This is necessary to launch all the important processes, debug their smooth operation, synchronize with the business processes of other operational units, and train the company’s specialists.
The BOT model implements on a contract basis. For this, a build operate transfer contract is concluded between the customer and the vendor, according to which the vendor undertakes to create and adjust the work of the customer’s IT department within a certain time frame, as well as to transfer this IT department under the control and full ownership of the customer within a certain time frame. The customer, in turn, undertakes to pay the vendor’s services on time and in full, and at the end to accept all the work done.
The BOT model of outsourcing has become widespread in the last decade, as it has several key benefits for businesses.
Key BOT Features For Your Businesses
At first, you should understand that the outsourcing BOT model includes several stages:
- “Build” stage includes an identification of the client’s requirements and needs, clarification of all controversial aspects of cooperation, and the contract conclusion. This is followed by the initial recruitment of specialists and the beginning of the direct implementation of the project. Vendor rents or buys premises are rented or bought, establishes the necessary infrastructure, and hires a team of specialists, adjusts their work. At the initial stage, the vendor creates the necessary environment for the new team, so that the values and goals of work coincide with the values and goals of the client and his corporate culture.
- “Operate” stage, in turn, consists more of a solid work team, the distribution of roles among them, and the subsequent establishment of business processes in the department in accordance with the requirements of clients. The vendor continues to monitor the recruited team. At this stage, team members must perform their duties effectively so that there are no blockers of effective work within the team.
- “Transfer” stage is the last phase during which the vendor hands over the project entirely to the client’s control. This stage can take quite a long time. Simultaneously, the client is convinced of the good quality of the work done, and the vendor, in turn, provides maximum transparency on his part.
BOT is a complex and multi-step process. Meanwhile, despite its complexity, this model has its own clear and obvious advantages.
First, a significant time reduction in project completion. In this case, it should be understood that a high-qualified vendor will complete the necessary work in a shorter time than if the customer did it on their own. Time is money, and in this case, the BOT model reduces the customer’s costs.
Second, the minimum initial investment. All the indispensable expenses associated with recruiting personnel, finding premises, and establishing infrastructure are minimized. An experienced vendor has established channels to help the client to get rid of headaches, unnecessary expenses, and costly mistakes.
The next point is that your risks are manageable and minimal. The BOT project implementation is under your control, and you can always curtail it on time. The financial costs, in this case, depends only on the conditions of cooperation with your contractor.
The latter is the organic and seamless integration of the IT unit into your business structure. One of the tasks of the BOT model is the initial adjustment of the harmonious work of the project in order to avoid any discrepancies in the work of the customer’s integral business structure.
Naturally, the BOT model is not ideal and universal. However, for example, it is suitable when creating a specific development center. The innovation and creativity that a good development center requires can only be achieved by building a healthy and professional foundation. BOT model will help with this. A vendor specializing in this type of work will be able to select a team, find a venue, establish an infrastructure, set up processes, and synthesize them with the client’s business structure.
Staffing As the Milestone
BOT model in the IT-sphere is a rather complex area. For a vendor, who, for example, has the task of building an IT development center from a client, there are several primary and important goals.
Firstly, it is the establishment of infrastructure. Searching for a suitable room, appropriate equipment, establishing an Internet connection, and other necessary services.
Second, you need to find a team. Here the task becomes more complicated since the vendor needs to find IT specialists of completely different profiles. In this case, the vendor should act as a responsible and experienced IT recruiter who can recruit an excellent team of IT specialists on whom this project will be held.
Software developers, data science specialists, data analytics and QA testers, back-end and front-end developers are just a part of the complex team that the vendor has to recruit and rally. In this case, extensive market contacts, deep experience, and solid expertise are very important criteria for selecting a vendor for a BOT project.
BOT model has a wide market presence. This model use is not limited to IT. Many governments are seriously considering the BOT model as an efficient method of implementing many projects, including infrastructure, tech, and energy. BOT model is already an integral part of public-private partnership – a form of interaction between the state and businesses to solve socially significant problems on mutually beneficial terms.
The IT sphere, in turn, is an ecumene for such type of outsourcing as build-operate-transfer. This method is not only cost-effective. It provides the client with the opportunity to get a unique product, ready from all sides for full-scale use and integration into his business structure. A professional BOT vendor will save time, money, and other resources, and in the shortest possible time provide an excellent IT addition to his client’s business.