The Build-Operate-Transfer Model at Era Biz

What is Build-Operate-Transfer (BOT)?

Build-Operate-Transfer, or BOT for short, is a commonly used IT offshoring strategy that allows a tech or non-tech company to choose an offshore partner to establish a software center abroad (called an offshore software development center) hence allowing them to share risks and reduce costs. This is often used by public entities such as governments to allow private entities to manage and run their technology projects. After a set time frame, usually less than five to ten years if the client is a private company or possibly lasting to a few decades if a government entity, the control of the project will be returned to the client by the offshore IT company. According to the requirements the offshore software company has to build or construct the related software, application or other system, operate the project for a specified time and then transfer the project operation back to the client.

What are the Advantages of Build-Operate-Transfer?

Build-Operate-Transfer projects have many advantages. Here are some of them:

1.Expanded Talent Pools

This is especially critical in countries, such as the US, where there is a shortage of IT professionals. Using BOT allows companies to access a wide talent pool of IT experts of various skillsets from the chosen offshore country.

2.Significant Cost Savings

Hiring and developing projects, as well as operating them, in countries with lower living costs allows to reduce the overall costs of projects. Countries such as Sri Lanka with low developer costs and highly skilled developers in PHP, Java, React.js,Next.js, Kotlin, Android, IOS and more are highly advantageous to BOT project models.

3. Reduced Responsibilities

The responsibilities of hiring, office accommodation, equipment, training, HR, payroll, legal, accounting, tax consultation and other such tasks become the responsibilities of the offshore development company you partner with.

4. Time Efficiency

This is especially the case, when non-tech companies partner with an offshore technology company. Due to availability of talent, and extended experience offshore IT companies, such as Era Biz, are able to complete the development tasks in record time in comparison to how long it would take inhouse.

5. Risk Sharing

During the period of the project, part or full ownership of the IT project will belong to the offshore software development company. Hence, any risks during the build stage or operation stage of the project will be shared among the client and the offshore IT company.

Why Choose Era Biz as your BOT Partner?

Era Biz uses the BOT 2.0 model which mitigates the risks that traditional BOT has. Therefore, in addition to the advantages stated above here are some additional specific reasons you should choose Era Biz as your IT partner for Build-Operate-Transfer.

The Key Stages of the BOT Model

As can be expected from the name itself, BOT projects are done in 3 key stages: Build, Operate and Transfer. What is included in these stages are dependent on whether the project includes an offshore software development center for a private entity such as in BPO, or is a program developed for a public entity/government.

1. The Build Stage

Era Biz uses the hybrid definition of ‘build’ in Build-Operate-Transfer, combining the aspects of ‘insourcing’ with the aspect of ‘outsourcing’ through offshore software development centers. However, setting up a separate center is not essential and the project can be done under Era Biz as well. Regardless, operations in the ‘Build’ stage will include a lot of infrastructural activities possibly including that of setting up a separate offshore software development center if required. Tasks on the list may be things such as arranging office accommodation, IT resources and equipment setup, and hiring and team formation, but specifics are dependent on the project. Notably, projects for government institutions (and nonprofits) may involve building and developing the product at the Build stage, with tasks such as design, development, testing and implementation of the product

2. The Operate Stage

‘Operate’, as Era Biz interprets it, differs between whether you are private or public institution. Public institutions and nonprofits don’t usually require a separate offshore software development center and are usually more focused on conceding the responsibilities of IT projects to us and having us operate the software product on behalf of them profitably for an extended time after development. In this case, build will include development and maintenance, and operate will include overall operation and maintenance of the developed product. In the case of private entities, activities in this stage may include team trainings, any research and analysis required, the design and development of software and other products, the operation, management and maintenance of the project or product, and any additional enhancements.

3. The Transfer Stage

Regardless of whether you are a private sector entity or a public sector entity or even a nonprofit, this stage is unified and the same. At this key and final stage, we will be transferring back the entire project ownership back to you fully, whether due to the end of the contract or due to a request from your end, and will be giving you the fullest support to allow you to take over smoothly. This stage may involve training for staff members if you wish to manage the project inhouse or the process of acquiring a new offshore subsidiary if you wish to continue operations offshore. There will also be a formal transfer of assets, and some additional auxiliary tasks for handover.