BOT or build operation transfer is a contract model used typically to fund large-scale projects. BOT is commonly used in infrastructure projects involving the government and private sectors, however it is often adopted by businesses to enhance outsourcing. The BOT model refers to the initial concession by a public entity such as a local government to a private firm to both build and operate the project in question. After a set time frame, typically more than two decades, control over the project is returned to the public entity. A big reason why BOT is seen as efficient in large scale infrastructure projects is because the government hosting the project does not need to spend any public funding while still providing public facility to the citizens.
Government entities, on the other hand, continue to encounter issues that make the BOT a viable option. Historically, such organizations have used the BOT model to save money and reduce the risk of undertaking large-scale transformation projects on their own. It is a solution that is occasionally applied in today's business environment among government-regulated public enterprises, such as public utility providers.
The first word of the phrase -build, often consists of designing and building the facility, workforce, and all the necessary tools required for the project. All the stakeholders and client will work together creating an end-to-end (E2E) operating model, then the chosen provider can continue to shift those designs to a real operation. The operate phase takes in transitioning those services and stabilizing them, making sure they work as efficiently as possible. The main goal of this stage is to build an operation that regularly achieves the service levels set by the buying organization and the service supplier. Lastly, the transfer process chimes back into its name -transferring back all assets to the client. Any adjustments or process enhancements required to satisfy the services' goals are implemented by the service provider.
Because the BOT engagement model is created to help businesses create a fully functional development center that will be legally transferred to your company after a set period of time, they would have legal permission to use the knowledge base, intellectual property, and all assets that comes with it. The BOT model can also be a very effective and viable option for startups, as they can also get a well-coordinated team of experts who have demonstrated their usefulness in terms of the project and business needs. This can spare new startups the trouble of having to identify, train, recruit, onboard, and manage an entire team on their own. The BOT engagement model also grants startup staffs to form tight bonds with their company and form strong bonds with each team members, which results in reduced turnover rate, promotes productivity, and improves job quality.
