As communication barriers come down and global competition grows, businesses must use their resources more efficiently than ever before. Access to a global market has driven a rise in outsourced development, with many clients opting for either a BOT team or their dedicated development team.
fram^ is a leading Scandinavian-Vietnamese IT engineering company that offers both models. While the two systems share many common traits, there is a difference between a dedicated team and a BOT one. We will get to that, but first, let’s define the approaches that we are talking about these two approaches.
A fram^ standing team is similar to a dedicated team that is built based upon a long-term agreement between a client and an outsourcing company. The vendor headhunts specialist developers according to the needs of their new partner, this team is dedicated to the client’s project, with the outsourcing company responsible for the day-to-day management of the team.
Nothing better than having your dedicated development team with fram^
- At fram^, we are big proponents of long-term partnerships with our clients, typically lasting for 6 months or longer, this allows us to build teams of engineers and other digital professionals that are tailor-made for your project. fram^’s complete software development services span every area of software engineering, offering ongoing consultancy, maintenance, and support throughout the product’s life cycle.
- Our client’s existing engineers can interact directly with their team at fram^ through a range of communication tools, ensuring there is no disconnect or loss of control over the project. This extended workforce increases the capabilities of our client’s IT department, forming a cohesive, collaborative unit.
- The dedicated development team is supported by fulfillment managers, technical architects and talented managers, who ensure that our developers maintain both our and our client’s high standards and that the end product reflects this. We understand what it entails to deliver elite website development services.
A BOT agreement sees the outsourcing provider also assemble a team, which then builds and operates the software within the local market. They establish the business as a legal entity, before eventually transferring the whole operation back into the hands of the client.
What makes fram^ BOT team special?
- We are passionate about building businesses from scratch and have an in-depth knowledge of Vietnam’s market place and its intricacies. We are the first Swedish-Vietnamese, NASDAQ listed venture building company and currently have 10 ventures launched primarily in Vietnam.
- Through our experience in building teams of dedicated developers and management structures within Vietnam, we are experts in recruitment. We do the hard yards for our partners in terms of finding suitable talent for the team, while ensuring that our client retains their desired level of involvement, including directly interviewing and testing candidates.
- Our core values drive us to cultivate long-term partnerships with clients, establishing close communication channels and encouraging teamwork and collaboration. Keeping our talent motivated and giving them the ammunition to succeed is what makes us tick at fram^ and can result in some exceptional BOT teams being transferred into our partner’s hands.
Similarities between the two approaches
The two models are very similar in nature, both offering some, of the many benefits of offshore development services.
Both a BOT team and a dedicated team are incubated by the offshore outsourcing company and can eventually become part of the client’s staff. Either approach can cut overall project costs, meaning capital is saved for thorough testing and the procurement of high quality resources. This low-cost aspect allows companies to execute IT strategies that would be too costly otherwise.
Full customization and easy scalability
A custom-built team means both the software and the personnel should be fit-for-purpose for the project. A BOT team or dedicated team can be scaled up or down according to the project’s needs and crucially they should be talented and experienced enough to deliver scalable software.
Short-term cost and risk avoidance
By outsourcing recruitment, team management and legalities to the vendor, the client insulates themselves against the inherent risk of these processes. They avoid the brunt of start-up costs and the high cost of building an in-house team of full-time developers.
If the outsourcing provider is reputable and experienced, they should be experts at recruiting, on-boarding and project management. With the knowledge that they have gained about the client’s business and company ethos, they are able to ensure continuity for the team in terms of their shared knowledge, be it a BOT team or dedicated team.
Differences between BOT build operate transfer team and dedicated team
Long-term risk and cost avoidance
The final stage of a BOT build operate transfer is the transfer of the new business into the hands of its parent company. They will assume a greater deal of risk at this point, as they are now solely responsible for every aspect of the business’ operations. They can no longer merely abort the agreement and they must pay for the infrastructure of the company from utilities to recruitment to benefits packages.
A dedicated team allows the client to mitigate the risk of unexpected costs, enabling them to divert from or allocate resources to the project on their own terms.
There can be concerns over the security of intellectual property when outsourcing to a distant land. A build-operate-transfer agreement means that the outsourcing provider can secure the IP rights while establishing the legal entity for the company. The ‘transfer’ aspect is usually based on certain metrics being hit and the business will have to be fully functional, operationally and legally, before the transfer takes place.
fram^ Standing Teams™ or BOT Teams?
If a business is planning to enter a local market with their finished product, BOT model is the route to go. While if they have been changeable long-term needs, a dedicated development team may be the better system, giving them their own dedicated, virtual, extended workforce. The two approaches are not mutually exclusive and can be converted into one another if needs do change over time.
Geographic and strategic considerations come into play regarding the local infrastructure. Is it an area with loose IP laws or a bureaucratic web of legalities? What are the nuances of the local labor market? A partnership with a Vietnam software outsourcing company, who are experts in the local market can reap huge rewards for business. If you are ready to see what benefits it could bring to your business, contact fram^ today!