The Build-Operate-Transfer (BOT) model is a long-term contractual arrangement between a private/public organization and a contractor for providing a public asset or service. It is commonly used by staffing firms to transition client processes in-house over time.
Build Phase:
– The staffing firm recruits, trains and onboards contract talent for the client’s new/expanded function or department.
– Infrastructure like office space, hardware, systems are set up by the contractor.
Operate Phase:
– Contractors manage day-to-day operations, meeting predefined KPIs and service level agreements.
– The client pays an annual fee to cover operational costs during this period.
Transfer Phase:
– Knowledge and skills are gradually transferred to internal employees through mentoring, job shadowing.
– Administration, asset ownership is handed over from contractor to client.
Benefits for Clients:
– Risks of new projects are initially absorbed by the contractor.
– Processes are stabilized with expertise before bringing in-house.
– Capacity can be expanded without long-term overhead.
Benefits for Staffing Firm:
– Long-term contracts provide stable revenue stream.
– Opportunity to cross-sell new services during transfer phase.
– Full project lifecycle engagement strengthens client relationships.
This model thus provides flexibility while building capabilities that are eventually cost-effectively transitioned to the client organization.