What is a Build Operate Transfer model in IT outsourcing?
What is a Build Operate Transfer model in IT outsourcing?
The Build Operate Transfer model (BOT) in the IT industry is a new trend in IT outsourcing focused on building local, nearshore software development teams or software development centers in collaboration with a local IT partner. After completion, the team is transferred to a parent company. Now let’s take a closer look at what makes BOT model so different from standard IT outsourcing services.
Access to local IT talent pools
The Build-Operate-Transfer model was mainly designed by local providers based on real customer needs. This crucial need in It industry is “time”. The typical process would require setting up a company representation, office, representatives prior to starting any local recruitment process. With the Build-Operate-Transfer model, your local IT Partner can start immediately after signing a cooperation agreement – thus creating a competitive advantage by saving several months. When the official company local office is finally established, the local IT Partner may start the software team transfer process. The below graph presents the whole BOT model:
Technical and operational know-how
This point is the most significant difference between local IT Partner versus standard IT outsourcing companies. HR agencies specialized in outsourcing can hire 1 specialist – but they can’t create a Software Team. They just simply lack the industry knowledge and experience to assess appropriate skills and predispositions. This is the area for companies like NxTide with the real IT Project Managers Developers onboard.
Faster time to market
The Build-Operate-Transfer model was mainly designed by local providers based on real customer needs. This crucial need in It industry is “time”. The typical process would require setting up a company representation, office, representatives prior to starting any local recruitment process. With the Build-Operate-Transfer model, your local IT Partner can start immediately after signing a cooperation agreement – thus creating a competitive advantage by saving several months. When the official company local office is finally established, the local IT Partner may start the software team transfer process. The below graph presents the whole BOT model:
Phase 1: Build
First, we set up your brand on our career website to make sure candidates are well informed. Then we run marketing campaigns alongside direct search activities to attract the best talent to your future IT Hub.
Phase 2: Operate
Our Project Managers take care of the onboarding, employee wellbeing, and team-building activities. Our role is to make sure everything runs smoothly so that you can reach scale with ease.
Phase 3: Transfer
Upon your request, we transfer the fully operational IT Hub to the Client making you the owner of it. You can still take advantage of our support, so the cooperation and scaling can be continued.
Lower initial costs
There is no doubt, that setting up own company is a significant cost, neither that the first weeks of company activity. In the BOT model these both initial costs are reduced upfront. The local IT provider is already operating on your behalf so you don;t have to hurry with choosing future location.
Furthermore, the market data estimations tell us that those initial costs can be invested much better on profit generation activity or future human capital.
Shared business and operational risks
We already mentioned the initial costs of setting up our own company. This risk is mostly backed by your local IT Partner. Similar to outsourcing the customer pays only for success in recruitment – but BOT allows the local partner to operate more flexibly and on a much larger scale. The IT Partner company can focus on your, large recruitment project and invest more internal (dedicated PM + IT Delivery Team) and external resources (eg. HR network).
The BOT model speeds up and optimizes the whole recruitment process making it much smoother and transparent for the candidates. All these factors matter and help to mitigate the operational and recruitment risks.
Better brand positioning and Team cohesion
This “soft” argument is commonly missed or forgotten. The local IT Partner acting on your behalf is transparent in the whole hiring process. Software Developers receive full information about future employment company, salary and about the transition period. Experienced Project Managers take care about all aspects of employee wellbeing and team building activities.
All these efforts support employer branding and create social bonds between team members.
Better operational flexibility and easier scaling
The cooperation with professional IT Local Partner gives the company a lot business advantages from time, cost and marketing perspective. What it can also provide is long-term relations and an option for scaling. The top market providers will also offer the support even after the final Team transfer event. NxTide for example always provide full scope of services and try to contribute to clients success.
Creating first BOT Software Team or Software Development Center in Poland
Poland has an extremely interesting location specially for (BOT model) between west and east. GMT+6 from New York, GMT+1 from London, GMT+0 from Berlin, Amsterdam, or Stockholm – making it a much better option than India or China. Poland is also a part of the EU which is a good proof of stability, security, and western work standards.
Although Poland is a member of the EU since 2004, it has still to offer very attractively labour costs even in the IT industry. The average rates are around 50% lower than in Europe and 60% lower than in the US. Yes, it is true that you could find more competitive countries for outsourcing – but in IT the end game is to find quality for an attractive price – not the opposite. Considering all cons of Poland the rates are still a bargain. The below table shows the differences for 5 countries.
NxTide is a specialized company focusing on building local Software Teams or larger Software Development Hubs in major cities in Poland. We take care of all recruitment and quality control processes making it faster and more cost-effective for you. Here is some more information about our expertise:
Over 7 years experience in creating a variety of software development teams
Over 60 teams and 300 engineers successfully hired and deployed
Several dedicated HR and IT Project Management Teams acting on your behalf
Please take a closer look on a dedicated and flexible offer we have prepared based on market needs:
1) Software Team Development: dedicated to clients looking to expand their software development teams or create small remote teams from scratch.
2) Software Hub Development: dedicated to larger and permanent projects. We’ve implemented the innovative Build Operate Transfer model to make the whole process faster, more efficient, and transparent.
Please read more about us here: https://nxtide.com/about-us/
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