Build Operate & Transfer(BoT)

OVERVIEW

The dynamics of today’s political, economical and technological environment have driven practically all the organizations to focus their energy and resources on their core business and outsource the additional functions to partner organization with complementary strengths. As we all know, the need of the hour is to adapt IT to gain and retain cutting edge over ever-growing competitive environment.

Indian organizations have the unique “India Advantage” of right skills, better communication ability, different time zone and most cost-effective execution model. The outsourcing services are offered through various delivery models, onsite consulting, offsite execution and now the new and emerging model is Build - Operate and Transfer (BOT) model.

Some of the typical outsourcing models are:

1. Build and Handover
2. Build and Operate
3. Build Operate and Transfer
4. Operate

The BOT Model would classically be used for:

1. An organization wishes to commence business in a country where it does not have its base. The organization would look at getting a local company to reduce risk its venture into the new country.

2. An organization doesn’t have the expertise in that process, and wants to pool in specialized and dedicated resources to execute it. Here the organization will tie up with a mature player who already has expertise and knowledge for it.

Key points involved in executing a BOT model:

1. An organization does a feasibility of approach - setup the said project on its own or work on a BOT model. If opted for BOT model, then, Service providers are shortlisted and a dialogue is initiated with them.

2. The parameters are shared with the service providers and their intent is ascertained - whether or not they would be keen to proceed with such an arrangement. It is very important to find a matured service provider as he has the right domain knowledge and expertise that helps to get the optimal returns from the investment.

3. The initial agreement is signed which spells out the nature of contribution that each of the participants will bring to the table. It also spells out the time duration for the transfer of project/rights. This is referred to as the `put' or `call' options i.e., whether one of the participants to the venture would put their shares to be taken up by the other or will they call for the shares of the other partner.

Thus to summaries, the BOT model helps large corporations to jump-start their operations in crunched-cycle time. They also enjoy all the benefits of an established company, including the brand equity of the service provider and also leveraging all the best practices and learned lessons of the successful company during the most critical part of a company — the formative years, and building upon it thereafter.

Increasingly clients based in US and UK are demanding BOT model and is now being seen as a preferred model in the BPO space. With many companies adapting this model, BOT would be the next big wave in outsourcing to watch out for in the coming years.

to know more please contact us on email: raj@admincorp.in or call us + 91 - 897 878 6946; + 91 – 900 001 2025