Build-operate-transfer is a contractual agreement that offers a strategic solution for organizations seeking to optimize their software development or business process service delivery operations by setting up a nearshore or offshore operations center. Thanks to the BOT model, organizations can engage a service provider to set up, optimize, and run these operations with the intent of transferring them to the organization as a captive center. This hybrid approach is known to be effective, cost-efficient, and widely adopted by organizations across various industries.
Following nearshore outsourcing, this model involves setting up a dedicated team in a Latin American country that best fits your business needs. A BOT partner handles the recruitment of local talent, establishes infrastructure (such as office space, IT systems, and legal frameworks), ensures compliance, and manages the day-to-day operations of the team, including administration, HR, and project management. The LATAM region’s cultural affinity with North America and overlapping time zones make communication and collaboration smoother and more effective for those looking to set up a development center overseas.
The nearshore BOT IT model can lead to significant cost reductions, with companies saving up to 50% on operational expenses by leveraging the lower development rates in Latin America. The average software developer salary in LATAM is around 60% less than in the United States, but this strategy offers more than just cheaper costs. Choosing BOT LATAM offers you a greater return on investment thanks to unparalleled support from us, from the initial talent vetting until the transfer of the operation is completed.
LATAM has a rapidly growing tech talent pool, with countries like Brazil, Mexico, and Argentina producing over 500,000 IT graduates annually. The BOT LATAM model allows you to tap into this skilled workforce, ensuring access to top-tier professionals without the added costs and logistical work of recruiting in-house employees near your company’s headquarters.
By setting up operations in LATAM through the BOT model, companies from diverse industries can accelerate their time to market by 30-40%. By choosing the Build-Operate-Transfer strategy, you can quickly establish a team and infrastructure tailored to your specific needs, reducing the typical delays associated with expanding into new regions when lacking local expertise, tailored resources, and operations support.
The BOT model provides a scalable framework for growth. Setting up a business model designed to help your organization scale more efficiently makes expanding operations easier as demand increases. This flexibility helps organizations like yours adapt to market changes and growth opportunities without suffering from any crucial delays. With most LATAM countries operating within two hours of US time zones, you can also benefit from real-time collaboration and communication with your nearshore development team.
In the Build stage of the Build-Operate-Transfer (BOT) engagement model, we focus on establishing a robust offshore team equipped with all the essential resources for success. This encompasses both tangible assets like digital infrastructure and office facilities, as well as intangible assets such as knowledge transfer, all expertly managed by BOT Latam.
This stage is pivotal for ensuring effective collaboration within the agreed timeframe. While typically spanning 1-3 months, our streamlined onboarding processes can shorten this timeline to just 1-2 weeks, facilitating swift team integration.
Crucially, unlike the other two phases of the model, the Build stage can be offered independently.
In the Operate phase, our team manages the day-to-day operations of your newly established team. We ensure smooth workflows, handle all administrative responsibilities, manage the local team, and continuously optimize performance across-the-board. This phase is all about ensuring efficiency, productivity, and a smooth integration with your existing team & operations, allowing you to benefit from a fully functioning nearshore center without any operational headaches.
The Transfer phase is where you take full ownership of the operation, if you wish to do so. Once your nearshore team and standard operations are fully established and running smoothly, we facilitate a hassle-free handover to your organization. You gain complete control over the team, infrastructure, and operations, ensuring long-term sustainability and alignment with your business objectives.
In the traditional outsourcing model, once your partnership ends, there isn’t a way to access the resources you’ve used in the past, including the expertise you’ve gathered and the people who have worked on your team. This isn’t the case with our Build-Operate-Transfer services, where you keep the knowledge team even after you and your business partner are no longer working together, and the team is transferred into your company.
The entire BOT process typically spans 12 to 18 months, depending on the complexity of the setup and your specific requirements. The Build stage usually takes about 3 months, during which we establish your team and infrastructure. The Operate phase timeline lasts around 9 to 12 months, during which we manage the team and optimize processes. Finally, during the Transfer phase, which takes about 1 to 3 months, we smoothly hand over full control to your organization, ensuring you’re ready to manage the operations on your own.
Our BOT model is a strategic approach where we help you establish and manage a dedicated nearshore development team or IT operation in Latin America. First, we build the team and set up the necessary infrastructure tailored to your business needs. Then, we operate the team, ensuring seamless day-to-day management and optimization. Finally, we transfer full ownership of the team and operations to you. This model benefits your company by reducing risks, accelerating market entry, and allowing you to tap into high-quality talent while maintaining full control over the operation.
After the process lifecycle is complete, we continue to offer post-transfer support to ensure a smooth transition and long-term success of your BOT IT operations. We provide guidance on managing the team, troubleshooting any operational issues, and optimizing processes as needed. As your nearshore partner, our goal is to ensure that you are fully equipped to run the operation independently while still having access to our expertise and assistance if needed.
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