Welcome to the installment part of offshore software development.

In the previous article, we had talked about what type of offshore software development outsourcing is right for you? 

By reading our previous article, you have understood that most businesses are using offshore outsourcing to cut down their expenses, improve production and efficiency.

So, to help you understand more about outsourcing. We have written an article on Build-Operate-Transfer outsourcing.

This method is commonly used in the IT sector and is known as an Onsite- Offshore Development center (ODC).

In this model, a local company sets up an exclusive team, facility and IP protected environment for a client. At the end of 3-5 years, at pre agreed terms, the client purchases the ODC. By keeping 20-30% of the staff in the Onsite, Global IT companies have found that, this model de-risks infant mortality with no financial investment. At the end of 3-5 years, they buy into a readymade operation while leaving the learning curve behind!

Also Read: Offshore Development offers manifold advantages

Here how it works:


This phase involves setting up of an operation unit which includes everything from selecting buildings, installing infrastructures such as the internet and IT devices, employing staff and putting in place the administration and legal framework.


This phase manages the offshore project which includes program management, development, maintenance, enhancements and product support.


In this phase, project ownership is finally transferred to the client, but only when the client is fully ready to control the project or when the contract expires.It includes new offshore subsidiary for the customer, transfer assets, and handover operation.

Benefits of Build-Operate-Transfer Model

1. Save money and make the company more profitable.

Business is all about saving a dollar rather than selling a dollar and that’s why BOT places a huge emphasis on cutting cost in any way possible.

Typically, BOT project saves as much as 60% of the normal cost as the project itself is owned, operated and managed by an off-shore team.

And the money, which BOT save can be used to enrich the company employees. Plus, it could be invested in capital or can be used to employ more people.

2. Help product come to the market faster.

With a team of resources in different time zone, BOT helps the company to bring the product and enhancement to market faster. Plus, it also manages the business need on 24/7 cycle.

3. Minimize the risks

Every country runs into a problem at some point. Don’t worry! BOT is here.

BOT lower the risk of a country by providing diversifying investment for the investors. Plus, it also offers diversifying workforce and workplace, which provide flexibility to hedge against a problem in any one country.

Reasons, why you should consider a Build-Operate-Transfer outsourcing for your offshore software development.

Reason #1 You Can’t Do Everything.

Yeah, you heard that right. Sorry to tell you in a hard way, but it’s true you can’t do everything. You can’t be at many places at once and you can’t be what we call SUPER CEO, who does everything. You Can’t.

But, if you still want to do everything then we suggest you look what you don’t want particularly doing in your business and outsource it.

By outsourcing your work, you can save your time which helps you to do everything.

Reason #2 Saves your time and money.

“How can I save my money, I gotta pay somebody? This sound like an absurd question, but here’s a think; as an entrepreneur we often forget to value our own time, every hour we work holds a value, and it’s worth a dollar figure.

Think like this, if you take eight-hour to figure out how to do a work.  When you can pay someone for only one hour of work that actually saving you money because that time you could put back into your business doing an income-producing activity.

It’s a mind switch but it’s an important mind switch.

BOT is a smart way of outsourcing, which saves your time and money by providing you long term and short term cost saving facility, which minimizes the cost for you over a  period of time.

The beautiful part is “you don’t need to break the money” just outsource smartly.

Reason #3 Decreases your stress level.

As an entrepreneur, you have to do lots of thing for your business, which increases your stress level.

And the last thing you need on your stressful day is Magic, which takes things off your list and decreases your stress level.

BOT outsourcing is like a magic for your business, which decreases your stress level by providing a hand in your business, which helps you to hit the business target on time.

And, remember outsourcing can be a little bit stressful in the beginning. But once you got into the habit of outsourcing, you will see that your stress level is going down.