Build-Operate-Transfer Model in Software Outsourcing


Gradually, the popularity of the BOT model in IT industry is increasing significantly. Adopting a BOT strategy in businesses is becoming a new norm as compared to many other standard outsourcing models, which were leading the industry in the past. The BOT model advantages and flexibilities are numerous that almost all sizes of industries are preferring to choose this model in the IT industry, especially in software development.

Let’s explore what is business operate and transfer model (BOT), the main reasons, benefits, and the major locations for the BOT model in this article.

Why Do Companies Prefer BOT Model Outsourcing?

According to the Computer Economics report 2020, more than 60% of the companies outsource some of their IT processes, which account for about 13.6% of their IT budgets. Thus, the BOT model outsourcing has become one of the most attractive outsourcing models because it is a win-win strategy for both client and vendor. Both parties share benefits as well as risks associated with the IT project, especially the large projects like establishing and running telecom, data centers, R&D centers, and other major projects.

This is one of the major reasons that companies prefer the BOT model for developing an offshore software development center and other projects. The other reasons for choosing the BOOT build-own-operate-transfer model include:

  • Fully managed
  • Comprehensive turnkey solution
  • Fully transferable
  • Secure intellectual property
  • Flexible and easy scalable
bot model outsourcing service provider needed

What is BOT Turnkey?

The provision of a complete solution from business registration to the establishment of an R&D center as a business subsidiary remotely is known as BOT turnkey, which is the fundamental characteristic of the BOT model.

How BOT Is Different from Other Outsourcing Models?

In staff leasing, the risk of timely completion of the project, security of intellectual property, and transfer of the entire infrastructure is not admissible in staff leasing and facility outsourcing as compared to the BOT model. Similarly, comprehensive outsourcing offers a complete solution for a particular process but the transfer of the infrastructure, especially the software platforms, hardware equipment, co-locations, and human resources are not transferred.

How Do Businesses Win by Using a Build Operate Transfer Model?

Like other outsourcing models, there are certain advantages and disadvantages of build operate transfer model. The advantages are much more than the downsides that attract businesses to choose BOT contracts in the IT industry.

Businesses win big by adopting the BOT agreement due to the following advantages:

advantages of bot software model
  • Cost-saving – In this model, the main capital is initially invested by the private company for building an innovative solution for a public sector entity. With a few modifications, the same is also applicable for all sizes of private-to-private companies. An investor builds an innovative solution and operates for profits for a certain period and then hands over the resources to the client. Thus, the client saves a huge upfront cost and gets a readymade infrastructure at the end of the project duration.
  • Profit increase – This model is a great win-win model for both clients and investors to win big profits. A client can increase its existing profit by injecting new ideas, resources, and solutions to enhance the profit margins.
  • Faster scaling – The BOT model is very flexible and faster to scale due to access to the offshore markets of human resources. Expert providers can help in scaling the teams much faster on the behalf of the clients.
  • Always ready resources – Establishing an offshore development center for dedicated use offers you the power of always ready resources to cope with any kinds of technical challenges in the project.
  • Access to new technologies – Domain specialist providers can provide the leverage of new technologies to the client, which is not an expert at those technologies. Thus, a client gets an added advantage of using new technologies efficiently.
  • Access to a large pool of tech talent – In the software industry, the BOT model is normally implemented in establishing facilities in the outsourcing countries where huge tech-talent pools are available for affordable prices. Thus, a client can benefit from the diverse tech-talent pool easily.

How Ukraine Is Attractive Spot for Implementing a BOT Software Model?

Ukraine has become one of the most attractive destinations for many multinational giants to establish software development centers (SDC) based on the BOT models with a large number of expert providers in the country. There are numerous reasons for the popularity of Ukraine prevailing in the global giants as well as for the medium-sized global companies. A few of those reasons are mentioned below:

why look for bot vendor in ukraine
  • Tech-savvy population – Ukrainian people love technology very much. They offer highly specialized services based on technologies. They are innovative and creative thinkers. They enjoy creating innovative solutions using the latest technologies.
  • High-quality services – Ukraine follows the European standards of quality. Powered by the highly specialized teams of management experts, Ukrainians can offer very high-quality services to valued customers.
  • Competitive rates – Ukraine is one of the build-operate-transfer BOT-powered outsourcing destinations that offer highly competitive rates in the Eastern European region and beyond.
  • Ideal geographical location – Ukraine is situated at the central location in the world. It is much easier and faster to travel to Ukraine. The overlapping work hours with many major countries is also a big plus for this country.
  • Large tech-talent pool – Ukraine has a huge pool of highly-skilled, experienced, and qualified developers, engineers, and consultants. The number of tech-talent is increasing very fast and consistently.
  • Shared culture and work ethics – Ukrainians have shared-culture and work ethics with many other European and North American countries. This improves efficiency and productivity.

Why Partner with Us as a Reliable BOT Vendor for Your Business

Partnering with a specialized partner like us offers a great value of investment, time, and ideas. We can help your business boom with the help of our quality services and innovative ideas. We can help your business in the following domains:

  • Staffing your core team – We offer you a comprehensive recruiting solution for building teams to accomplish all phases of the build-operate-transfer model. We search, shortlist, select, and onboard qualified developers, engineers, testers, and other tech-talent to work dedicatedly on every phase of the project.
  • Providing support staff – Hire and manage the support staff for your development center based on the BOT model.
  • Tailored equipment provisioning – We procure and make ready to operate equipment tailored for the specific tasks in the BOT model.
  • Real-estate solutions – We choose the right realtor on your behalf to provide you real-estate solutions based on your requirements such as renting, purchase, or partner with other colocation providers, etc.
  • Offer quality and reliability – Our services are highly reliable and powered by great quality in line with the European standards of quality.

If you are looking for a reliable build-operate-transfer partner, contact us and request a quote and learn more about why we call ourselves experts on the BOT model!

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