Build, Operate and Transfer Model – Getting Software Product Development Done Right
The Industry That Never Sleeps:
Software product development is a fast industry. What worked yesterday may be obsolete today. Because of this, your programmers never sleep, the research and development never ends, and as part of the leadership of a software product development company, you are constantly balancing risks and returns.
Yet despite all this endless work, the obstacles of software development continue coming. Profits are low, turnover of new software is too slow, and losses keep piling. The pressure never ends.
Have you ever asked yourself, “Why isn’t there a better way to do develop software?”
Turn to the Government:
It may be time for you to take a page from the government playbook. Historically, government infrastructure programs have always faced dual problems. First, governments naturally could not keep up with all the latest trends in construction and engineering. Think about how quickly every single technology changed during the Industrial Revolution! Overnight, old technologies became obsolete and if a government had spent millions of dollars on that obsolete method, they were simply out of luck. Second, the government could never justify spending millions of public dollars on research in an age of democracy and transparency. Without guaranteed returns, public outrage would increase with every dollar wasted.
If you are leading a development company, these challenges may seem similar to what you are facing on a daily basis. So what did governments do? Faced with the dual challenges of rapid technological change and minimal research and development capacity, governments cleverly turned to the build, operate and transfer model of public project development. In this model of development, governments outsourced pieces of new public projects to third party contractors. Governments paid a fixed fee that gave contractors a fair return on income, and the contractors would build and operate the physical asset for a fixed term. After the term ended, the contractors would them transfer ownership of the asset to the government.
How does this help me?
Why was this a win-win, and why will outsourcing development be a win-win for your software development company? Outsourcing removes the two major risks of custom software product development. First, by finding expert firms in their field to develop and operate a software, your company will be assured to purchase the latest technology for your project. After all, if you hire an expert C+ developer, then you can be sure that he will know more about C+ then your Java programmers.
Second, because you are purchasing this expert, the research and development is already included. You will have gained the many years of experience that developer has with one simple hire. Soon you will have a new, cutting edge software developed at a predictable fixed cost, for which you will not have to pay operating fees for as long as you want, and you will be in a better position to reap the benefits.
So why did governments turn to the build, operate, transfer model for product development? For the same reason your software development company should use BOT models in your software product development. You will enjoy more flexibility, operate with lower risks, and develop products faster with one simple hire.
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