coMakeIT sets up an Offshore Development Center
in Build-Operate-Transfer (BOT) mode
A European software maker was fast gaining traction with its innovative facility management & real estate solutions. As it sought to expand its business and solution footprint, the fast-growing software maker realized that acute shortage of talent is a major stumbling block that could derail its growth plans. As it was contemplating offshoring with traditional TSPs or setting up a fully-owned captive, coMakeIT offered a superior solution and helped it build an Offshore Development Center (ODC) in India through a unique Build-Operate-Transfer (BOT) model.
To overcome the crippling shortage of technology talent in western markets, many businesses that are dependent on highly-skilled resources are forced to establish offshore operations in locations with abundant vailability of talent such as India. Depending upon the scale of operations, most businesses choose to either outsource their offshore work to traditional Technology Service Providers (TSPs) or build a fully-owned captive. Both these conventional options have significant deficiencies on multiple fronts including high CapEx, need for signficant executive management oversight, and difficulty in integrating with customer’s native operations.
coMakeIT’s unique BOT model enables businesses to build a dedicated ODC in a collaborative mode, and spin it off into a fully-owned entity once it attains operational maturity. This BOT nmodel is specifically designed to overcome the limitations of traditional offshoring through TSPs or captives, and offers the following advantages to software businesses:
- Leverage partners branding to achieve rapid scaling
- Assured knowledge retention with named resources
- Insourcing of key competencies
- Better integration with native teams
- High level of transparency, control and mature governance
- Flexibility to exit and setup own entity after stabilizing operations
- Focus on outcomes and business goals
- No Capex and only Opex
Thanks to the collaboration with coMakeIT, the European software maker achieved the following business benefits:
- Successfully established a dedicated ODC with mature capabilities, to serve all major geographies with a full-service portfolio
- Gained a strategic growth engine capable of innovation and transform its core solutions
- Was able to focus on its core business without having to worry about capacity constraints, talent shortages, and operational challenges
- Expanded its business footprint significantly, increased its customer base by 50% and doubled its global revenues.
- Reduced business, operational, and financial risks
- Leveraged the BOT model to exit and successfully establish its own legal entity in India