Organizations in India that plan to expand their technology footprint need to address their hiring, team setup and delivery processes, and operational control over the long term. The BOT model GCC India engagement model enables you to expand and scale a Global Capability Center in India, supported by a knowledgeable technology partner during its first few years. BOT is a Build-Operate-Transfer model where a partner undertakes the responsibility of setting up and operating a dedicated team, before transitioning the agreed scope of work to the client after an agreed period of time or volume of work is met. For organizations that want to build their own long-term technology capability but do not want to deal with many of the set-up activities up-front, a BOT model can be a helpful way forward.
A global capability center (GCC) is a strategic offshore unit that provides missions essential to its subsidiary organization. Unlike traditional offshore centers that primarily provided low-cost operational support, today’s GCCs have evolved to include roles in software product engineering, research and development, cloud modernization, data analysis, automation, and digital innovation - depending on the parent company’s strategy, resources, and end goals.
During launch, multiple related activities need to be managed simultaneously, such as defining what skills are needed and what the required team configurations will look like; setting up the delivery streams; and creating a communication interface for the Indian team with the global leadership. The organization needs to also manage the technology, security, documentation, quality and knowledge transfer aspects. Managing all of this alone is not trivial in a new market or for a first-time dedicated engineering organization. An engagement model delineates ownership and helps define a seamless flow from early planning into execution.
Selecting the right build operate transfer gcc india approach The first step to selecting the most appropriate build operate transfer model is to reflect on what the client organization ultimately wants to own and operate. For some organizations, this may be a dedicated software engineering shop that ultimately becomes an extension of its internal product organization. For others, it may mean creating specific skills or capabilities in quality, Dev Ops, embedded, cloud, or connected-product development. The end state is the context in which the transfer stage needs to be modeled.
The typical three phases of Build-Operate-Transfer The Build phase. In the first phase, the partners need to agree on the operating structure, onboard and select candidates, and initiate the required operating models for the center. Depending on the scope, the construction phase can also include onboarding, provisioning the technical environment, planning the deliveries, and establishing a control framework. The goal is not to recruit a team without a clear purpose, but to build a base on which the company will be able to scale and grow its own operations later on.
At the operate phase, the team will provide the work according to the operating arrangement that was agreed to during the operate phase. The technology partner will be providing delivery guidance, team management, process design, or other elements as stated in the agreement. The client will learn about the talent on the team, observe their work and performance, and get ready to take over more in the work effort. This phase is crucial since the GCC needs to prove its delivery model and technical environment are able to deliver repeatable performance.
The transfer stage is how the transfer to the client is achieved as per the agreement. This could be handing over employment arrangements, operational elements, documentation, assets or the various administrative processes involved, or any combination thereof, according to the contractual arrangements and relevant specifications. The scope cannot simply be presumed to be identical in all cases. Companies must consider how to transfer carefully so that key technical knowledge, project responsibilities and delivery obligations are conserved, while the handover means the client can have greater control over its GCC.
Pratiti Technologies offers Build-Operate-Transfer as a technology engagement to add to its technology engagement options. A company should think about this option in conjunction with offshore delivery center and staffing augmentations. An organization may seek a dedicated Build-Operate-Transfer dedicated operation, a Build-Operate-Transfer in conjunction with an offshore delivery center or a Build-Operate-Transfer with a dedicated operation and additional technical staff or augmentations on a project-by-project basis. Selecting the right solution is the goal of a Build-Operate-Transfer engagement, not necessarily the more complex solution.
Technology capability planning also plays a key role in GCC development. For example, a firm forming a product engineering center might need programmers, architects, testers, Dev Ops experts, and more, all working together through the product life cycle. An industrial company might require talent in Internet of Things platforms, embedded software, cloud computing, analytics, digital twins, and other areas. The technical domains to be covered should be tied to a credible road map that explains what the team will achieve and how to measure success. This is important in making recruiting and capability-building efforts less diffuse and in helping leadership allocate investments based on business impact.
People, communication, and knowledge retention are also required for a sustainable GCC. These organizations require properly defined team roles, successful orientation, technical documentation, and cross-site learning opportunities. Global stakeholders need to work through development minimum quality standards, security measures, decision escalation, and issue resolution policies. Knowledge transfer needs to be planned as a continuous process, not a last step of transfer. When the team documents and consistently shares their expertise, the group is much more equipped to hold on to their institutional knowledge and continue delivery as functions change hands.
Financial planning and performance measurement must be aligned with the same long-term vision. Managers should have clarity on the set-up costs, the operating costs, recruiting requirements, infrastructure needs, costs of transferring the work, etc. They should also identify the performance metrics that tell them whether the center has met the purpose for which it was set up: delivery confidence, quality of software, release milestone, quality of onboarding, how much progress they are making towards being standalone. These metrics paint a better picture than the number of people on the books or the cost incurred. Periodic evaluations help leaders understand how far the GCC has progressed in the right direction.
Careful negotiation of contractual obligations, confidentiality agreements, property rights to intellectual property, data security, employment issues, service standards and requirements, and exit or transfer conditions should all take place before entering into a BOT. These things should all be the topic of negotiations, as organizations want to avoid future misunderstandings. The drafting of the agreement should describe what happens if timeframes shift, scope of work increases, or either party determines there is a need to renegotiate.
If your organization has plans of setting up a dedicated technology facility in India, Build-Operate-Transfer can be the enabler that takes you from setting up to deep ownership. Its success lies in careful planning, well-defined ownership, teams that are well-versed with the teams and a transfer plan that has been planned at the outset. Pratiti Technologies enables companies to consider options for technology engagement based on their engineering needs and function goals. If your company is considering GCC in India, let’s get in touch. Discuss your objective, evaluate models for engagement and map the path to establish, operate and transfer a technology center that fits your business strategy.
