How the Build-Operate-Transfer Model Reduces Costs

por Katherine Casaccia    |    March 9, 2022    |      6 min read

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There’s no denying that the technology landscape is one of the fastest-paced, most frequently developing industries. With new changes seemingly popping up by the day, companies, especially startups, have to find new ways to fill technical skills gaps while keeping costs low. After all, it’s vital to find the right talent to help your organization grow without spending all of your resources along the way.

Luckily, that’s where the Build-Operate-Transfer (BOT) Model comes in. At CodersLink, we use this model to help U.S. tech companies expand their operations using Latin America’s tech hubs in places such as Mexico, Brazil, and Costa Rica. With years of success behind us, we’ve been able to propel tech companies into their next investment phase, helping them find talented developers that become an integral part of their team.

But how does the BOT model work? Here’s a quick breakdown.

Build: The first step of BOT, this strategy involves your company forming a partnership with a recruiting firm such as CodersLink to establish a software development center abroad, typically in low-cost offshore markets. This is so high-level, experienced talent is at your fingertips. Our agency will hire the developers, acquire office space, set up the facility, and take care of contracts.

Operate: This second stage refers to operational management when CodersLink will set up the complex logistical matters that typically drain resources and time from companies trying to do so themselves. For example, think of HR, legal protections, payroll, and more. 

Transfer: The final stage is when your company will take back the reigns, as your offshore entity is now operating. Remember: your company is always the actual owner here. They’re simply working with CodersLink through a close partnership. At this point, your company will take complete control over operations.

BOT is an exciting strategy for managers and operations leaders to hire an all-star developer team without the typical stress that comes along with doing so. Of course, this model saves you time and energy, but many companies are starting to realize just how much money it can save them as well.

Here’s a breakdown of how Build-Operate-Transfer can help your organization reduce costs while still putting together a reliable, hard-working team.

Reduces Recruitment Costs

Navigating the tech recruitment space alone is a difficult task for most companies. Working with an outsourcing partner will allow you to reduce recruitment costs, as you won’t be worrying about the ins and outs of building your team, setting up your office, and more. Having a local IT partner to help your organization find talented team members will reduce the risk of you failing in a new market.

Companies such as CodersLink ensure you don’t have to worry about the typical costs that come along with recruitment, such as marketing efforts, job board fees, and hiring software. Instead, the right outsourcing partner will have an experienced job pool ready to go – meaning you get access to top talent without having to spend money looking for it.

Reduces Operational Costs

The amount of money organizations spend on establishing their payroll and HR systems alone can take up a significant portion of their overall budget. But with BOT, companies like CodersLink will take care of the nitty-gritty, significantly reducing your overall operational costs. 

When it comes to your business, time is money. Not having to put in these operational hours yourself will save you thousands at the end of the day. In addition, what you might spend 6+ hours working on, partners such as CodersLink may be able to complete in 1 hour or less.

Learning how to properly operate in unfamiliar territory is a vast undertaking, which is why finding a professional organization is a wise investment. You’re also saving money since you do not have to pay your team to focus on an entirely new task instead of their current responsibilities.

Reduce Potential Legal Costs

With outsourcing rules and regulations changing each year, it’s more important than ever to work with a partner who can ensure you don’t run into any legal trouble. Not knowing how to enter a market in a new country often prevents organizations from getting the talent they need to grow. But with Build-Operate-Transfer, you’re able to work with a company that has a firm understanding of any laws you need to follow, reducing the impact of potential legal costs you may incur should you work alone.

Having a local partner with a deep understanding of the market is invaluable to building a team of eager professionals ready to work for a growing company. In addition, the culture, laws, language, and ways businesses operate are vastly different depending on the country, so it’s vital to work with a partner who can guide you in the right direction here. Though your legal fees should be nonexistent, the peace of mind you’ll gain from not having to worry about specific laws or cultural miscommunications is another bonus of the BOT model.

Reduces Salary Costs

With developers in Latin America making around 30% less than developers in the U.S., using the Build-Operate-Transfer model will save your company a significant amount of money in salaries alone. Mexico specifically has become a leading talent provider for American companies due to its qualified workforce and proximity to the United States.

Many Latin American countries such as Mexico have invested vast amounts of money into technological development programs, allowing foreign countries to expand their teams and tap into this growing talent base. In addition, affordable living costs in popular Latin American cities also enable developers to maintain an excellent standard of living without needing multiple six-figure salaries to simply stay afloat in cities such as San Francisco or New York.

A Final Word

When it comes to intelligent outsourcing, the BOT model is the way to go. With long-term and short-term savings, you’ll minimize costs both now and in the future. As a growing business, we know you’re all about making the most of your time and effort. BOT will help you utilize each of your resources, allowing you to focus on what matters most.

CodersLink is here to help you build the right team for your company’s next phase. We pride ourselves on focusing on our client’s needs and objectives while still providing you with an experienced talent pool. After all, building the right team is how you’re going to establish yourself as an industry leader.

Have any additional questions about the Build-Operate-Transfer model? We’re all ears. Send us a message today, and one of our experts will give you the answers you’re looking for!

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