Build-Operate-Transfer Model of Outsourcing Making

Published: 14th February 2008
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There is a new trend nowadays in outsourcing and it is rapidly getting hold of the international market.



It is called the Build-Operate-Transfer Model, an approach that gives the opportunity for investors to work effectively in another country and make sure that all of their investments are better used.



By BOT it means the investor/client though technically owning the facility being setup, it leaves the responsibility to a third party vendor/middle man that will work on the local area of investment. The middle man will work on looking for employees, facilities, location as well as ironing out legalities in a given period of time wherein eventually it will transfer the aforesaid responsibilities to the client according to the contract they agreed upon.



The advantages on the side of the investor/client is the time factor benefit as well as the monetary returns it promises for such endeavor. Investing in a foreign country is a tedious task, there's always a possibility that the host country might take advantage of the ignorance of the investor/client. Therefore employing the help of a BOT vendor not only secures the investor/client investments it also secures the investor/client's reputation.



But there also exists a downside in all these. oftentimes the investor/client takes advantage of the BOT vendor that in the middle of the operations it leaves the BOT vendor along with the investment. A number of hired employees are forced out of work thus

compromising their way of life. Other times the BOT vendor takes advantage of the investor/client and revs up their pricing unbeknown to the investor/client.



Bottom line is, the BOT model is rather becoming more popular not because of its disadvantages rather it is becoming more notorious because of a number of investor/clients who are benefiting from it aside from the number of countries that is being lifted economically by such investments. Therefore in the final analysis it is the quality of work done that keeps it ideal amongst other outsourcing models.


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