More companies are embracing Build-Operate-Transfer and initiating plans for deploying new digital approaches in 2021. Making the most of this outsourcing model will help businesses deliver digital value at scale and speed.
The COVID-19 pandemic has accelerated the imminent digital transformation we were all expecting. Many traditional companies had to face the dilemma to either quickly adopt the change or die. In 2021, most organizations have already defined a strategy and vision with the importance of adapting to continuous digital changes. Although these inputs are more vital than ever, companies still try to resolve how to deliver broader reach at scale and speed. Here’s where Build-Operate-Transfer (BOT) plays a significant role in assuring any company implementing this model becomes the owner of its digital future.
Using this type of IT outsourcing model and making the most of it can become the roadmap to scaling new capabilities successfully. With our extensive experience helping industry leaders worldwide, we understand that choosing the BOT model needs to be well thought and evaluated. Below we will talk about its benefits by producing digital value at scale and give you some advice to decide whether it is the right business model to meet your goals.
Delivering digital value at scale in 2021
Organizations looking at scaling new capacities and finding effective ways to work in 2021 need to understand how Build-Operate-Transfer can help achieve their objectives. Although it involves an external IT provider, this software development collaboration imitates the relationship with an overseas subsidiary of your own. The outsourcing partner establishes a nearshore or offshore team, brings it to a completely operational level, and legally transfers the subsidiary to your corporation after a determined amount of time. This model gives you the cost and effectiveness of traditional IT outsourcing while enabling you to keep absolute control of your intellectual property and technologies.
As the pandemic has restricted the way businesses usually operate, this model is a silver bullet for clients looking to expand in 2021. Using BOT also helps organizations become bionic, combining technology with the flexibility, adjustability, and comprehensive experience of humans. This futuristic vision creates superhuman capabilities and the advantage of delivering digital value at scale, scope, and speed.
According to a recent survey, around 60 percent of organizations outsourced some or all their functions in 2020. With the accelerated and ongoing demand for scale at speed, Build-Operate-Transfer has become an incredible option to guarantee greater operational control and further overseas expansion.
How to choose the right vendor for your business in 2021?
The ongoing digital transformation gives companies no time to find, attract, and hire experienced specialists for a project. The BOT mechanism creates an outsourcing component to carry out these tasks. When scouting for the right vendor to partner with, it is crucial to acknowledge that your investments have a strong connection to your functional and business priorities. Make sure that by implementing agile principles at scale, the right partner has robust measures to embrace the following:
- Foster and promote collaboration across teams
- Guarantee rigorous and reliable data protection
- Ensure efficient adaptability
- Understand the culture and portfolio of your products
- Share your goals and know where the company is going
- Execute an ambitious plan to upgrade workforce skills required for your project
Employing the Build-Operate-Transfer model with the right partner enables enhanced control over your remote resources and assets. It allows your company to avoid significant upfront costs associated with establishing nearshore or offshore IT and software development facilities on your own.
TEAM International has plenty of experience providing customized IT and software development solutions to leading companies worldwide. Contact us, and allow us to explain the best approach for your business.
Identify, foresee, and avoid risks
The presence of risk in every project is unquestionable; what changes is the type of threat, depending on each project’s nature and size. Companies must perform risk evaluation through the project’s extent to manage and operate the stakeholders’ assets, and increment success probabilities. Although risk management does not eliminate the hazards, it helps to identify and foresee uncertainties to control them and, in many cases, avoid them. To maximize the revenue of any project, consider these four necessary steps to proper risk mitigation:
- Identify risk sources. The progress of a project admits the appearance of hazards. Risks can be categorized into three primary sources: financial, political and technical risks. Identifying the sources helps to foresee the effects and develop a plan to manage them.
- Quantify their effect (risk analysis). Taking preventive action to decrease the probability of risk or its impact on the project is more effective than repairing the consequences after it has happened.
- Develop management responses to risk. Generating a contingency plan in advance can significantly reduce the cost of action should the risk occur. Risk triggers, such as missing intermediate milestones, should be determined and followed.
- Provide for residual risk in project estimates. Accepting that residual threat is imminent helps to develop alternative options or change the project scope. The most common risk acceptance response is setting an emergency allowance or reserve, including amounts of time, money, or resources to account for known risks. The budget should be determined by the impact and estimated at an adequate level of risk exposure.
When and why it’s a good idea to use this outsourcing business model?
When considering Build-Operate-Transfer to establish a subsidiary of your organization elsewhere, examine some essential factors to make the best decision. These questions will help to determine whether this outsourcing business model will be a good opportunity, as it addresses the following concerns:
- What is the scope and difficulty of the project?
- Do you have access to the required skills and talent for your project?
- How substantial is risk-sharing for your business?
- Do you prefer a nearshore or offshore location?
- Have you considered intellectual property protection in the desired location?
- What is your presumed set-up time?
- What are the estimated initial and final costs of your project?
- Would you like to keep your company’s corporate culture in the nearshore/offshore location?
When corporations choose to outsource, it is never a casually made decision. The choice to outsource brings opportunities to propel a business into a predominant market share, scaled growth, and newly revealed revenue possibilities. For companies that decide BOT is the best strategy for 2021, we offer plenty of tools. At TEAM International, we have the resources, experience, and advisory to help anyone navigate the outsourcing waters and succeed.