The Build-Operate-Transform-Transfer (BOTT) model

What is the BOTT model of global shared services delivery?
 

The BOTT model of global shared services delivery allows client organizations in the world of outsourcing to tap into a service provider’s expertise to set up, optimize, and transform their IT and business functions—while ensuring that the operation can be transferred back to the organization as a shared services center. By leveraging secure physical space in low-cost countries such as India, this allows for the ready availability of seed technology, operational talent, and leadership to jumpstart the shared services journey for the client organization.

In the BOTT model, the service provider:

• Hires and deploys operational talent and leadership to serve the client organization exclusively.
• Deploys leading practices and outside perspective to transform the processes, delivering efficiencies through process and technology transformation initiatives such as RPA.

What sets the BOTT model apart is its commitment to a long-term, win-win partnership between the service provider and client organization. The client organization gains the benefits of a shared services center while the service provider is rewarded for their expertise and contribution to the client's success.

How does the BOTT model differ from traditional shared services?
 

Traditional business process outsourcing (BPO) models fall short in terms of providing real value and true collaboration between the service provider and client organization. On the other hand, the BOTT model provides a true partnership agreement where both parties share governance and management control. This allows for full integration of talent with the client's businesses for a more dynamic and responsive relationship. The BOTT model also offers higher transparency in pricing and margins, giving the client organization more control over their finances. With the BOTT model, clients aren’t just outsourcing services—they’re investing in a longterm strategic partnership to drive real business value and transformation.

Seven key considerations for the BOTT model
 

The success of using the BOTT model is highly dependent on initial solution developed by service provider in partnership with the client. When setting up the model, consider the:

1. Archetype: Assisted, greenfield, or white label model.
2. Location: The location of the delivery centers is an important consideration regarding cost, talent availability, and language skills. Companies should consider locations with a strong service provider presence for favorable tax and regulatory environments, a large talent pool, and access to necessary infrastructure.
3. Facility: The facility where the shared services center will operate is important and should be fit for purpose with the necessary infrastructure, equipment, and security measures in place.
4. Financial terms: Service provider and client organizations should align on the financial terms underpinning the model (for example., different cost headers associated with setting up and operating the center, who will pay and when).
5. Intellectual property (IP) ownership: Companies must determine at the outset who owns the intellectual property developed by the center and how it will be utilized after the transfer of the processes back to the client.
6. Scope of services: The client must determine the scope of services which encompasses the functions and domains of technology related services to be delivered through the center based on talent availability, cost-effectiveness, complexity of services, and areas of strength of the service provider.
7. Scale: Both the client and the service provider should decide on early to ensure appropriate decisions are made regarding facility buildout, technology setup, and financial terms.

Learn more of what the BOTT model can do for your organization in our full report.