It allows clients to incubate a project in an offshore destination with a regional team and service provider until it reaches satisfactory maturity. It is then transferred with full ownership. Here’s a closer look at the BOT-model and its advantages.
It is vital for StartUp entrepreneurs to follow a set of aspects of successful product development in order to penetrate a given market:
Every team within the company must align with the business goals, including the engineering team
Quality must be met by engineering deliverables
Products are made for “early movers” and with a strategy of a “go-to-market”
Keep the frugal burn rate
In order to achieve these goals, entrepreneurial business owners must ensure:
- That they process a great engineering team with the necessary skills for quality, product architecture, performance and implementation
- Adopt the processes and a perfect engineering model
- Provide 24 x 7 execution and support
- Investment rounds which will aid growth
There are several ways to achieve this such as through outsourcing, 100% subsidiary, acquisition and of course, BOT. Currently, the BOT model has an advantage over the others due to several important factors.
Firstly, BOT provides 100% transparency within the engineering team and their daily activities. In addition, the model provides direct control regarding recruitment processes such as hiring, firing and retention.
The BOT model also makes the retainment of Intellectual Property (IP) rights easy and hassle-free. Furthermore, it provides a cost-saving alternative in comparison to 3rd party partnerships such as acquisition or outsourcing. It is also better and safer to increase offshore investments in stages based on actual results rather than estimates. Lastly, the BOT model is a great alternative if you are not ready for 100% subsidiary outside of your home location.
Here’s a look at what the BOT model entails:
- Recruit and staff a highly skilled and efficient team
- Create a bulletproof knowledge transfer system
- Set up infrastructure and facility
- Growth and Hiring
- Manage offshore teams
- Product support
- Enhancement and maintenance
- Hire an operations/engineering head
- Transfer assets - teams and fixed assets
- Register a new offshore subsidiary
- Handover operations
- Benefits of a BOT-Model
There are many attractive benefits of the BOT-model over a traditional offshore subsidiary one. A BOT-model allows a company to up-scale its operations rapidly. It does this by attracting the right talent through the utilization of the Industry Network. Additionally, it comes with low infrastructure set-up costs and a pool of trained resources whenever necessary. A dedicated team with high levels of knowledge retention helps relationship building with coaches, managers and leads and their teams. Furthermore, a BOT-model reduces costs by 40-50% more than other traditional models. Finally, it reduces time through the use of management resources which are in charge of IT infrastructure, accounting, security, regulations and real estate.
A BOT-model partner takes care of many daily tasks, hiring, regulations and others until the project reaches full maturity. With a backup of an engineering team away from your home location, you have enough time and resources in order to focus on more important things such as strategy, sales and marketing.