The Build Operate and Transfer (BOT) and dedicated team building are two major HR models extensively used in the modern outsourcing field. Both models are very popular IT staffing solutions among all sizes of business across the industries worldwide. They have their respective upsides and downsides, which characterize the right selection of the model in certain circumstances.
Let’s explore the similarities, differences, and reasons for the popularity of BOT and dedicated team models and also explore the build operate transfer benefits as well as the benefits of staff augmentation services in this article.
Why Is the BOT Model in Software So Attractive Among Businesses?
Initially, the BOT scheme model was designed for the financing of large public sector projects by the private companies under the public-private partnership (P3) category. Very soon, it started making inroads into the software development industry. Presently, the BOT model in software industry has become so popular and numerous BOT provider companies emerged in the global market. There are numerous reasons for this increasing popularity of the BOT model. A few of them are listed below:
- Establishment of remote subsidiaries – The BOT model allows the businesses to establish a remote subsidiary of its own business that is secure, reliable, and under full control. Your intellectual property and business-critical data are completely secure and you own your entire offshore development center (ODC) after establishment.
- Reduced risk of Build Operate Transfer model – This is a fully managed model in which the risk factor is very low as compared to other models. The initial risk is shared until the entire project is operational and handed over to the client. The presence of software centers in different countries also reduces risks associated with legal, economic, labor, and law and order situations.
- Very cost-efficient model – The BOT model is very productive and affordable. In certain cases, the cost-saving may reach up to 60% of its cost in major countries in Western Europe and North America.
- No need for logistics and sourcing – The sourcing and logistics is not the matter of the client in this model. The service providers manage all processes related to logistics, real estate, and human resources.
- Access to diverse technologies and tech talent – The BOT scheme model allows businesses to access the large pools of tech-talent skilled with modern technologies. Thus, the gap of required skills and technologies can easily be bridged by adopting this model.
- Faster development and scalability – A remote software development center with full ownership will increase the speed of development. The scaling of the team is also very fast and reliable.
An Overview of Dedicated Development Team Model
In a dedicated development team model, a remote team is built to work dedicatedly on a project for a certain period but the resources and infrastructure are not transferred to the businesses. This is a model of remote hiring that has certain benefits and limitations as mentioned below.
Benefits:
- Cost-efficient solution
- Full control over the team
- Faster development
- Reduced time-to-market (TTM)
- Increased productivity
- No upfront cost
Limitations:
- Exposed intellectual property
- Culture and language barriers
- Communication issues
- Ownership issues
Companies with medium and long-term software development projects can use the dedicated model of hiring. After working on the project, the team and other infrastructure used in the project are taken back by the providers. This model is also suitable for small businesses that cannot afford a full-scale subsidiary in remote locations.
Dedicated Team Model vs BOT Model Comparison
The dedicated team and BOT models are similar as well as different in multiple ways. A few of the similarities and differences between those two models are mentioned below.
Similarities:
- In both models, the tech-talent teams are dedicated in their respective working nature
- The client has full control over both teams in terms of software development tasks
- Accountability is easy in both models of human resources
- Cross-culture and language issues are common in both cases
- Time difference and diverse location issues are common
- Cost efficiency is also common in both models
Differences:
The difference between the BOT and dedicated team models are mentioned in the following comparative table.
| Build Operate Transfer (BOT) Model | Dedicated Team Model |
| Intellectual property and business secrets are highly secure in this model of human resources | In this model, the intellectual property and business secrets are exposed to the third-party teams |
| Development of human resources and infrastructure for the future | No ownership of the human resources as well as the infrastructure |
| The risk factors related to the projects and performance are very reduced | The risks associated with the project completion and performance are comparatively more |
| Company’s own management and support staff | Shared management and support staff |
| BOT model is costly as compared to dedicated teams | The dedicated team model is comparatively less costly |
Attractive Location for BOT Building and Dedicated Team Building
Numerous locations have emerged as bright spots for the dedicated team and BOT building models. Ukraine is one of the most popular locations in the world, especially in the Eastern Europe region. The demand for a Ukrainian staffing agency has increased significantly in recent decades. Ukraine offers a wide range of human resource (HR) and software development models for all sizes of companies from all domains of industries.
Incentivized government policies, better infrastructure, a tech-savvy population, and state-of-the-art educational institutes contributed heavily in establishing Ukraine as one of the attractive outsourcing destinations.
Why Is Ukraine So Attractive for Build-Operate-Transfer (BOT) Projects?
Numerous great reasons that attract all sizes of businesses in all domains of industries to build dedicated development centers powered by BOT models in Ukraine. A few of them are listed below:
- Large tech-talent pool – A huge pool of over 200 thousand tech-talent in Ukraine
- High-quality services – Ukraine offers high-quality outsourcing services through professional service providers
- Competitive prices – The prices in Ukraine are very competitive as compared to many other competitor countries
- Moderate cost of real-estate and infrastructure – The cost for real-estate and infrastructure is comparatively moderate
- Encouraging policies – Government policies are very encouraging for IT investments, especially in the BOT projects
- Attractive location – Ukraine is located in the middle of the globe; so, overlapped work-hours and shorter traveling time are other pluses of Ukraine.