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The BOT Advantage

Summary

Build-Operate-Transfer is a service model which allows a client to incubate a subsidiary in an offshore destination with a local service provider, until the subsidiary reaches satisfactory maturity for full transfer of ownership to the client. It has become the preferred service model for middle-stage and mature startups as well as established firms. The model allows them greater management control of their offshore resources and protecting them from opaque and opportunistic resource management by traditional outsourcing vendors.

Details

1
Explore Needs
2
POC
3
Small, production level projects
4
Evaluate need for BOT
5
Launch DDF
6
Teleparadigm operated DDF
7
Transfer

 
 
Explore Needs
  • Understand short-term and long-term needs and vision.
  • An ongoing iterative process, as needs evolve.
 
 
Proof-of-Concept
 
  • Establish smooth communication, project feasibility.
  • Align processes and team bonding.
  • Clients evaluate Teleparadigm’s capabilities, and determine a fit.
 
 
 
Small, production-level projects
 
  • Clients benefit from tighter control, quicker return on investment, and agile product/feature management.
 
 
 
Evaluate need for BOT
 
  • Use Teleparadigm’s template to determine if you should outsource to us or have your own "Dedicated Development Facility".
  • If it is too early, you may continue with a real project, and revisit BOT. Foresight will help you in the long run.
 
 
 
Launch Dedicated Development Facility (DDF)
 
  • Create hiring plan, set up office space for exclusivity, find customer representative(s) to deploy locally, and identify project manager(s).
  • Clients have right to interview prospective team members.
 
 
 
Teleparadigm-operated DDF
 
  • Excellent office facilities and latest computing resources.
  • Teleparadigm continues ongoing hiring, training, project management
  • Teleparadigm shall not reassign any engineers to other customers’ projects.
 
 
 
Transfer
 
  • Client takes over full operations of subsidiary and wholly owns it.
  • Continue using office facilities or establish new office.
  • Teleparadigm offers additional legal, accounting, HR/payroll, logistical, and technical support through transition. For a longer operational engagement, the transfer could even be free.
 

Benefits and Pitfalls

BOT is an organic way of establishing an offshore subsidiary, by growing the team into the company culture gradually and with total focus, as the business grows and using a local service to manage local recruitment, HR policies, office space, logistics and culture. The benefits of using a BOT model typically outweigh ‘going it alone’ to set up a subsidiary.

Advantages vs traditional service model Disadvantages vs traditional service model
  1. Clients can defer the investment & decision of owning & operating an offshore development center while getting all the benefits of it from day-one.
  2. Resources are fully dedicated to client.
  3. Greater transparency and control for managing resources during operational phase.
  4. With time, engineers and QA become domain experts giving increased productivity individually and bringing new hires up to speed.
  5. Excellent way to gain entry into rapid growth story of the Indian market. Establishment of subsidiary (upon transfer) makes a strong statement of market commitment.
  6. Teleparadigm offers free market research to existing customers, which can be invaluable for studying the Indian market.
  7. We can scale the BOT quickly given our vast educational infrastructure.
  8. Teleparadigm is confident in providing unbeatable terms for BOT, because we can tap into a large pool of engineering graduates to replenish resources transferred.
  9. We welcome customers to interview applicants for their incubated subsidiary.
  10. During the transfer phase, Teleparadigm through its parent company can provide outstanding consultation for putting together trusted legal, financial, accounting and logistical support, and access to well-located commercial real-estate.
  1. Client must ensure work in the pipeline to avoid idle time, or reduce headcount.
  2. Rarely applicable to early stage startups, because of short-term urgency.
  3. Typically BOT providers, charge more for this model since they stand to lose experienced engineers. Teleparadigm will beat these prices, drawing strength from its constant availability of reliable engineering graduates.
  4. Upon transfer, clients take on attrition risk. Teleparadigm has deep insight into each employee and can advise clients on competitive, retention packages.