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Overview |
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| With the many advantages it offers, the Build-Operate-Transfer (BOT) model is rapidly becoming the model of choice for companies that would like to take advantage of the powerful software development resources available in India and to establish a permanent presence there.
Briefly stated, the BOT model is an integrated partnership between Cosmic Bridge and our client with the objective of building, operating and transferring an independent and wholly owned Indian development subsidiary to our client.
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Cosmic Bridge contracts with our client to build and operate an Offshore Development Center (ODC) in India on their behalf. The BOT entails a multi-step and phased process that is initiated and executed over a fixed interim period. Initial operations can be begun as early as 3 to 4 months from the kickoff date and are normally completed within an 18 to 24 month timeframe - depending on the size and scope of the project. Upon completion of the project, our BOT team delivers a fully operational and stable development center that will function as a stand-alone legal entity of our client.
A typical BOT is built and managed in three phases:
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Build (Phase 1)
During the build phase, Cosmic Bridge provides our client with a complete solution to establishing their own brand identity at a lower price than comparable traditional offshoring arrangements.
Cosmic Bridge assumes responsibility for the set up and operation of the ODC including:
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Acquisition of suitable office facilities (including real estate, utilities and permits) |
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Acquisition of operating licenses to ensure compliance within the local jurisdiction. |
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Acquisition of development staff (together with our clients’ final approval authority) |
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Acquisition of all support staff (finance and accounting, secretarial, legal,payroll
and commercial services) |
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Acquisition of all necessary hardware |
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Acquisition of all necessary communications infrastructure |
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Acquisition of all necessary office equipment |
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Operation of the Development Center during Phase I and Phase II |
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Management of all administrative responsibilities |
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Facilitation of the transfer process in a manner that will ensure process integrity and minimize inherent migration issues. |
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Operate (Phase 2)
Once the core entity has been established, Cosmic Bridge provides a comprehensive set of operational management services ranging from development, QA and technical support to HR and staffing, accounting, payroll, legal, facilities and security. This allows our client to focus achieving the agreed upon objectives and the management of their core business rather than on operational issues.
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Transfer (Phase 3)
Upon completion of the build phase and stabilization of the operation phase, operations and full ownership of the legal entity are transferred to our client at the end of a timeframe specified at the outset of the project and at a mutually agreed cost.
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| Process Framework |
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| The following table summarizes how the required resources are assembled, operated and transferred under the BOT model.
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Particulars |
Build |
Operate |
Transfer |
Infrastructure |
- Identification of facility
- Procurement of infrastructure items
- Installation
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- Maintenance
- Insurance
- Protection
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People |
- Identification of skill set
- Recruitment
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- Training
- Compensation
- Morale building
- Growth and promotion
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- Transfer of day-to-day operations
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Intellectual Property Rights |
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- Design
- Develop
- Implementation
- Integration
- Professional Services
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- Transfer of all deliverables
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Company |
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- Legal clearances to operate
- Management of operations
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Financing |
- Capital expenses
- Investment stake from client to subsidiary
- Cosmic Bridge’s Fee
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- Monthly operational cost including any new team setup
- Cosmic Bridge’s Fee
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- Monthly operational cost including any new team set up
- Cosmic Bridge’s fee
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| Advantages |
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| For many companies, the BOT model provides an attractive alternative to the continued investment in – and reliance on – a dedicated internal development team. Upon establishment of the offshore development center through the BOT process, the ODC can:
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Improve the bottom line through significant cost savings of 30%, 50% or more compared with the cost of domestic (US based) development operations. |
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Assume responsibility for substantial segments of the overall development effort. |
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Significantly enhance market agility through the scalability and quick ramp-up capabilities available in the resource-rich Indian software market. |
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Create enhanced overall company valuation in anticipation of an IPO or acquisition. |
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Provide a powerful synergistic resource, tightly integrated from day-one, with the procedures, quality control and operating philosophy of the parent company. |
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Establish a permanent presence in the vital Indian market and position the company for future growth. |
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| For more information on our BOT services, please give us a call or drop us a note!
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