Build Operate Transfer – BOT Model in Software Outsourcing

Software development 27 August, 2019 Thu Ha Bui

As business grows, they are expanding the need to grow their product and invest in technology. Other operational priorities simultaneously placed pressure on the supply of money. As a consequence, the BOT model has become popular as a methodology for project financing.

The model works like this: a business entity (the Client) hires another organization (the Vendor) to finance, build and operate a facility or business operation, often in a new territory or country, stipulating that the facility’s operation will ultimately be transferred to the client.


What is “BOT Build – Operate – Transfer Model”?

A company hires another company to set up and manage its local IT operations before transferring them back to the parent company.


What are the Benefits of Build-Operate-Transfer Model?

Cost-effectiveness, low risk and shorter delivery time are the most significant advantages of BOT Model.

When you’re working with fram^ (an offshore software development company) and the BOT Model, you’ll find greater flexibility, lower risks, lower costs and faster time to market, in addition to the benefits of our process expertise and your ability to choose to own the facility. We operate the facility in your best interests and we ensure a smooth transition when the time is right as you take ownership of it.

What is “BOT Build – Operate – Transfer Model”? 

Build:

This stage involves establishing an operating unit that includes everything from choosing buildings, installing infrastructures such as the Internet and IT systems, employing staff and setting up the administrative and legal framework.

Operate:

This stage manages the offshore project that involves program management, growth, maintenance, upgrades and product support.

Transfer:

Project ownership is lastly transmitted to the client in this stage, but only when the client is fully prepared to manage the project or the agreement expires. It involves the client’s fresh offshore subsidiary, transfer assets and handover operations.

What are the Benefits of Build-Operate-Transfer Model?

Companies offering the IT Services on BOT model, such as fram^, have access to high quality talents in Vietnam and multiple worldwide places. Fram^ can build an operation of IT facilities from the ground up in one of several worldwide places, enabling the customer to make the following savings: 

1. Save money and make the company more profitable

Business is about saving a dollar instead of selling a dollar, which is why the BOT Model places enormous emphasis on reducing costs in any manner possible. BOT project typically saves as much as 60% of the normal cost as an off-shore team owns, operates and manages the project itself. And the money saved by BOT Model can be used to enrich the employees of the company or can be utilized to hire more people.

2. Help products come to the market faster 

BOT Model enables the business take the product and improvement to market quicker with a resource team in distinct time area. It also manages the 24/7 cycle company need.

3. Minimize the risks 

At some stage, every nation runs into a problem. Don’t be afraid! BOT Model is here. The BOT Model lowers a country’s risk by offering investor diversification. It also provides diversification of the workforce and workplace, providing flexibility in any nation to hedge against a problem.

Why should you consider a Build-Operate-Transfer outsourcing for your offshore software development?

Reason #1 – You Can’t Do Everything. 

Yeah, that’s correct you heard. I’m sorry to tell you hard, but you can’t do everything, it’s true. You can’t be simultaneously in many places and you can’t be what we call SUPER CEO, who does everything. You Can’t.

But if you still want to do everything, we suggest you that look what you don’t want to do, especially in your business and outsource it. You can do everything once you start saving your time, on outsourcing your work.

Reason #2 Saves your time and money.

“I have to pay someone, how can I save my money? This sounds like a ridiculous issue, but here’s a thought; as an entrepreneur we often forget to value our own time, it’s worth a dollar figure every hour we operate.

If you take eight hours to find out how to do a job, think like this. If you can pay someone for just one hour of job that actually saves you money because that time you could bring back into your business doing an activity that produces revenue.

It is a change of mind, but it is a significant change of mind. BOT is a smart way of outsourcing that saves time and money by providing you with a long term and short term cost saving facility that minimizes your costs over time. Why don’t you enjoy the beautiful part is just smartly outsourcing “you don’t have to break the money.”?

Reason #3 Decreases your stress level.

You have to do a lot for your business as an entrepreneur, which improves your stress level. And on your stressful day, the last thing you need is magic, which takes things off your list and lowers your stress level. 

BOT outsourcing is like a magic for your company that lowers your stress level by offering a hand in your company that helps you reach your company’s goals on time and remember, in the start, outsourcing can be a bit stressful. But once you’ve got into outsourcing Practice, you’ll see your level of stress dropping.

Fram^ operates your IT facilities on providing the services like E-Commerce Development Services, Web Application Development Services, Mobile Development Services etc, and handles all facets of team running. (We can also provide employees with training and tech support at your other locations.) We handle everything to enable your remote on-board IT operation smoothly, and then expand quickly and easily.

Then we’ll transfer the remote IT team to you when you’re prepared. With each step of the transition, we will help you from locating the office room to obtaining utilities or finding extra vendors when required. Best of all, as they were from the first day, the IT team you’ve come to understand and count on is with you.


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