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Is Build-Operate-Transfer (BOT) the right Product Development model for you?

On Tuesday, 03 Oct 2017
Is Build-Operate-Transfer (BOT) the right Product Development model for you?

Reality is, software product development is a long, repetitive and expensive endeavor. A significant amount of capital planning and provision of multiple funding rounds is required if the desired product has any chance of getting to the market. Then there is the ongoing costs of sustaining engineering, product support and release management. Maintaining multiple version of the software, supporting customers on each of the versions, ensuring all supported version continue to run on hardware(s) and other dependent software or operating systems, etc. can quickly become a drain on the core product engineering or development team.

Building and managing a product development team and a core sustaining engineering team brings in other fixed overheads that divert financial resources away from the investment in the product.

One option is to use an Outsourced Development partner who will take your product direction and build the product to its desired specification. They can also provide the necessary ongoing support for the install base accounts. This solution is good for small and concise projects. It does not work cost effectively where R&D, ongoing technology uplift, etc. are needed.

The right solution is to get into a Build-Operate-Transfer (BOT) engagement with a partner that has the core understanding and processes to help you build and operate your desired development team. Technically this can still be termed as an outsourced software product development or outsourced sustaining engineering but, what matters is the structure of the BOT contract that gives you the required flexibility, cost efficiency and direct control that is much required in a product development initiative.

A right BOT partner will also be able to help you reduce your ongoing product support, customer support and Quality Assurance costs.

Checklist before choosing the right BOT partner:

  • Can the BOT partner help me build the desired team as fast as possible?
  • What processes do they have for shortlisting and assessing the candidates?
  • How efficiently are they tracking the Time to Hire(TtH) which has a direct impact on the Time to Market (TtM)
  • Does the BOT product demonstrate the ability to burden as little non-product related costs and overhead?
  • You own the product IP
  • You own and control the design and architecture
  • You own and manage and control the software release cycle
  • You determine the technology platform, supported OS, development tools, hardware dependencies, etc.
  • What are the conditions for the “Transfer” part of the BOT contract?
  • Does the partner have the ability to build a dual-shore team?


Cyret offers a unique model for outsourced product development and outsourced sustaining engineering Build-Operate-Transfer (BOT) services to varied set of customers. We have extended our BOT offering to even non-technical or non-software needs like building and managing Business Development and Market Research teams.

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