Build-Operate-Transfer Model – An Alternative To The Dedicated Development Team Model

Tejesh Vinay Kollipara

Build-Operate-Transfer Model – An Alternative To The Dedicated Development Team Model


The modern outsourcing industry heavily utilises two key HR models: BOT (BuildOperate And Transfer) and dedicated team building. Both models are widely used as IT staffing solutions by companies of all sizes and in a variety of global industries. They each have their advantages and disadvantages, which define the appropriate model choice in particular situations.

In this article, we will examine the similarities, differences, and factors that contributed to the success of the dedicated team and BOT models, as well as the advantages of staff augmentation services and build-operate-transfer.

Why Do Businesses Find the BOT Model In Software So Alluring?

TheBOT scheme model was initially created for the public-private partnership (P3)category for the financing of large public sector projects by private companies.It quickly began to penetrate the software development sector. The BOT model in the software industry is currently so well-liked that many BOT provider companies have popped up on the international market. The BOT model's rising popularity is due to a variety of factors. Here is a list of a few of them:

1. Creation of remote subsidiaries- The BOT model enables companies to create a safe, dependable, and fullycontrolled remote subsidiary of their own company. When an ODC (Offshore Development Centre) is established, your intellectual property and mission-critical dataare completely secure, and you retain ownership of the entire ODC.

2. Reduced risk of the build-operate-transfer model - Compared to other models, this fully managed model has a very low-risk factor. Up until the project is completed and handed over to the client, the initial risk is shared. The risk of situations involving law, order, and the economy is also decreased by the existence of software centres in various nations.

3. Extremely economical model - TheBOT model is very profitable and cost-effective. There is no need for logistics or sourcing because, under this model, the client is not responsible for either. All logistics, real estate, and human resource-related operations are managed by service providers.

4. Access to a wide range of technologies and tech talent - The BOT scheme model enables companies to access vast pools of tech talent proficient in contemporary technologies.Therefore, by implementing this model, the gap between the necessary technologies and skills can be easily closed.

5. Faster development and scalability - A remote software development centre under full control willspeed development. The team can scale up and down with great speed anddependability.

DedicatedDevelopment Team Model Overview

A remote team is created in a dedicated development team model to work solely on a project for a predetermined amount of time, but the resources and infrastructure are not given to the businesses. As will be discussed below, this remote hiring model has some advantages and drawbacks.


1. An affordable option

2. Complete team control

3. Quicker development

4. Slashed TTM (Time-To-Market)

5. Enhanced efficiency

6. No up-front fees


1. Publicly available intellectual property

2. Disparities in language and culture

3. Issues with communication

4. Issues with ownership

Companies can use the dedicated model of hiring for medium- and long-term software development projects. The team and other project-related infrastructure are taken back by the providers after the project's completion. Small businesses that cannot afford a full-scale subsidiary in far-off places can also benefit from this model.

Comparison of the Dedicated Team and BOT Models, the BOT and dedicated team models have many similarities and differences. Below are a few examples of those two models' similarities and differences.


The tech talent teams in both modelsare committed to their respective working styles.

*The client has complete control overboth teams regarding software development tasks.

* Accountability is simple in bothhuman resource models.

*Language and cross-cultural issuesare frequent in both situations.

*Time zone issues and variouslocation problems are prevalent.

*Cost effectiveness is prevalent inboth models.



*In this model of human resources,intellectual property and business secrets are extremely secure.

*The development of infrastructureand human resources for the future.

*There are very few risk factors thataffect projects or performance.

*Management and support staffemployed by the company.

*The BOT model is more expensive thanusing dedicated teams.

Build-Operate-Transferas opposed to a committed team

How does the BOT model differ from a dedicated team partnership where a team of individuals works within your business partner's organisational framework?

It does not appear to be much different. Both models involve a team that is solely dedicated to your project and is not a part of your business.

Keeping your intellectual property even after integrating new members into your structure and the transfer of knowledge and resources are the two key differentiators. When you stop working with an outside service provider under the dedicated team model, all the expertise and resources are lost. Rebuilding these within your own company requires a lot of time, perseverance, and most importantly, skills.

There is no doubt that theBuild-Operate-Transfer model of collaboration is the safest and most practical one available. Other benefits of it include:

1. Reduced cost and risk.

2. Complete culture alignment in your organisation.

3. Complete command of the operational structure and its process.

4. Improved responsiveness to any business changes.

5. Advantages of local knowledge.

Winding Up:

Businesses can create a long-term development resource that is dependable and produces high-caliber technical output at a reasonable cost by using the BOT approach.To combat talent shortages and guarantee that the necessary skills are available to pursue rapid growth, this is essential. Startups can concentrate on developing their core businesses and putting their expertise to use where it matters most by using a vendor who is focused on creating a remote technical team. They can use the BOT model to develop technical resources in a hands-on manner, which can be a key competency as senior staff work to expand the company.

As they struggle to find the development resources they require, every organisation should be able to consider alternative solutions, such as the BOT model. Intellogi is here to assist them in overcoming such challenges. This will ensure expansion.