Expanding operations abroad requires making many decisions, and the first thing you should have on the table is which growth model is the best for you. The most popular options are staff augmentation services, business process outsourcing, project outsourcing, and the less understood Build Operate Transfer model.
In plain English, this model is a collaboration with an IT outsourcing partner, commonly a native provider in the region where the company seeks to grow its workforce or presence. The outsourcing partner sets up everything necessary to build the new offshore or nearshore team, bringing it fully operational and then transferring it to the client company.
The particular benefits of outsourcing with BOT may differ for each case, but in general, these are the seven proven advantages of the Build Operate Transfer model:
The BOT works best for startups and midsize companies with sufficient funds to grow and maintain a highly productive offshore or nearshore information technology team in the medium and long term. In addition, this model is designed for technology companies that want to access the global talent pool, secure their intellectual property rights, and focus on programming.
On the other hand, the BOT is best used in development teams of 10 or more employees.
If you are looking to hire smaller teams or for periods of less than two years, the service that best suits you is Staffing.
The Build Operate Transfer model in the software outsourcing industry, as its name suggests, is divided into three distinct stages:
The outsourcing partner recruits the talent, hires the dedicated office space, configures the equipment and technologies necessary for the company’s needs.
It is essential that before you start to build the team, the objectives, requirements, and expectations are clear between you and the partner.
Note: This phase can remain ongoing throughout the timeline as the staff continues growing according to the company’s needs and the project. The objective in this phase should be to build the core team.
Time to complete this phase: 3 – 6 months
During this phase, the outsourcing partner fully manages all operations reacting to the project. However, at CodersLink, we carry out a more collaborative process so that the company has control over the project (KPI’s and SLA’s, reports, software development, quality control, etc.). At the same time, we manage everything related to the staff and offices (contracts, payroll, legal regulations, perks, recruitment, cancellations, etc.).
At this stage, the knowledge transfer process takes place, and it is also the right time to establish the best practices and culture of the company in the staff.
Time to complete this phase: 18 – 48 months
In this transfer stage, the partner yields all responsibilities and processes related to human resources and office management. This must happen as long as the company is declared ready to take control and legally authorized to operate in the country.
The transfer phase can occur at any time in the BOT model. However, it has better chances to be successful if it is carried out after the first year and is more recommended after 18 months of operation.
Although this is the final stage of the BOT model, the company can still work with the outsourcing partner. The cooperation can continue under a new participation model (Staffing, On-demand talent, etc.) if necessary.
Time to complete this phase: 1 – 6 months
Note: Check the transfer fees with the partner of your choice since each one handles different rates based on various parameters. It is more common for transfer fees to be higher the first year.
CodersLink has a variety of services available to complement any outsourcing and recruiting strategy you choose. For example, when you have graduated from the Build Operate Transfer (BOT) model, you can count on talent on-demand to continue growing your team. You also count on us to recruit remote professionals throughout Latin America through our staffing service and thus add diversity to your team of engineers.
We have proven experience working with this model, and we have witnessed the rapid integration of the teams with our clients’ companies. NetProtect, for example, a global leader in internet security, built a nearshore team of more than 40 developers, designers, and support specialists in less than 18 months. Using a collaborative outsourcing model like BOT, NetProtect transitioned from an offshore team in Asia to a nearshore team in Mexico without sacrificing quality or budget.
Do you have questions about how to get started with the Build Operate Transfer model? Then, contact one of our specialists.