{"id":17799,"date":"2022-08-19T12:32:52","date_gmt":"2022-08-19T07:02:52","guid":{"rendered":"https:\/\/cigniti.com\/blog\/?p=17799"},"modified":"2023-09-20T18:02:01","modified_gmt":"2023-09-20T12:32:01","slug":"bot-model-to-expand-global-operations","status":"publish","type":"post","link":"https:\/\/www.cigniti.com\/blog\/bot-model-to-expand-global-operations\/","title":{"rendered":"5 Ways Cigniti\u2019s BOT Model Helps Global Companies Expand Their Operations"},"content":{"rendered":"

The COVID-19 pandemic has changed how businesses in all industries and geographical areas conduct business for years. A recent\u00a0McKinsey Global Survey<\/strong>\u00a0of executives revealed that organizations had increased the digitalization of their internal processes and supply-chain interactions by three to four years. Additionally, their portfolios\u2019 proportion of digital or digitally enabled items has increased startlingly by seven years. It takes new strategies and practices to be competitive in this changing business and economic environment.<\/p>\n

On the other hand, there is a significant lack of competent development resources on a global scale, which results in software engineers\u2019 pay being absurdly high in most Western and high-income countries like the US, the UK, and Canada. All sizes of businesses are increasingly swarming to the closest and most accessible offshore and nearshore software outsourcing facilities to reduce operational costs and get the best software talent.<\/p>\n

There will be a global shortage of over 545K software developers by 2026.
\n\u2013 ManpowerGroup<\/strong><\/p>\n

Businesses now understand various ways to use remote information technology talent and must adopt innovative leadership strategies to integrate remote talent into their operations effectively. They seek offshore talent models that best balance cost, capability, and control because each strategy has its own work<\/a> management and cost considerations.<\/p>\n

Many are attempting to grow their technology organization<\/a> by collaborating with a third party to establish a virtual captive office in India with the possibility of internal transfer. They are searching for virtual captive partners offering office space, furniture, network access, local PC support, and complete HR assistance (recruitment, payroll, benefits) because their workers and contractors are dispersed worldwide.<\/p>\n

IT companies are being compelled by this rapidly changing ecosystem for growth to hunt for tools and strategies that will keep them competitive. The\u00a0Build-Operate-Transfer (BOT) Model<\/strong>\u00a0is one of the most often used strategies to accelerate their growth in the least amount of time.<\/p>\n

But what is the build-operate transfer model, and how does it operate?<\/p>\n

What is a BOT model?<\/h2>\n

According to\u00a0Gartner<\/strong>, in a BOT model, a company engages a service provider to set up, improve, and manage a business process or information technology service delivery operation to transfer the function to the company as a captive center.<\/p>\n

Several multinational corporations are using the BOT approach today as a risk-shifting substitute for conventional outsourcing. BOT maintains control by hiring a partner to set up, establish, transform, and transfer new service centers back to the business. It is neither internal nor typically outsourced.<\/p>\n

The build-operate-transfer model is an integrated partnership that combines design-build purchases’ operations and maintenance duties with the design and construction responsibilities. It enables you to create an offshore crew during the \u201cbuild<\/strong>\u201d phase and test them out during the \u201coperate<\/strong>\u201d phase.<\/p>\n

In the \u201ctransfer<\/strong>\u201d phase, once the team has adapted to your company\u2019s procedures, resources, and methodology, you may assume complete command of the group.<\/p>\n

You have the option to test before you purchase with the BOT model. As a result, you shouldn\u2019t make significant investments in your offshore unit unless you are sure of its value.<\/p>\n

Why should you consider BOT?<\/h2>\n

Your company has considered a new or improved service delivery model. You worry that you lack the resources to set up a captive center on your own, but you still like to have more control over the situation than a full outsourcing option. Or perhaps you wish to improve your offshore operations but lack the resources.<\/p>\n

Enter the build-operate-transfer model, a hybrid choice that enables you to gain critical business<\/a> skills and the benefits of outsourcing without giving up control, time, or resources to develop independently.<\/p>\n

A well-executed BOT model for software outsourcing has several advantages. There are still certain factors to take into account, but for the most, the benefits outweigh the disadvantages:<\/p>\n