Reducing Costs and Scaling Faster with the Build-Operate-Transfer Model

For organizations managing complex, mission-critical systems, scaling development and operations while controlling cost is a constant challenge. The build-operate-transfer model offers a flexible approach by allowing companies to set up, run, and eventually take ownership of offshore teams without the risks of traditional outsourcing. Reco’s client, a leading US toll solutions provider, leveraged BOT to overcome talent shortages, reduce operational costs, and stabilize delivery 

1. Client Overview

The client is a leading provider of integrated technology solutions for toll authorities in the United States. Acting as a systems integrator, systems consultant, operations provider, and maintenance partner, the company supports multiple toll authorities with automated tolling and transportation management solutions. Despite strong domain expertise, the client faced growing challenges in efficiently scaling development and post-deployment support. To support growing project demand and reduce dependency on costly onshore resources, the client identified Vietnam as a strategic offshore delivery location.

2. Client Requirements

The client was experiencing significant operational strain due to talent and cost constraints in its onshore delivery model.

Key challenges included:

• High cost of onshore hiring in the US, driving up total delivery costs
• Difficulty sourcing cost-efficient, experienced engineers locally in the US
• Annual attrition rates of ~30% due to skill mismatches and limited role alignment
• Limited internal capability to manage offshore hiring, HR, and delivery governance
• Fixed-bid outsourcing models lacked flexibility and were cost-prohibitive
• Need for a scalable delivery model that could ramp teams up or down quickly

The client required a partner that could establish, manage, and eventually transfer a Vietnam-based delivery team while maintaining quality, transparency, and long-term control.

3. Reco’s Approach

Reco proposed a structured build-operate-transfer model designed to balance cost efficiency, quality delivery, and long-term ownership.

3.1. Build Phase

During the Build phase, Reco focused on establishing a strong foundation for offshore delivery in Vietnam, combining governance, talent strategy, and delivery structure.

Key initiatives included:

• Designing a detailed governance and engagement management framework aligned with the client’s US delivery standards
• Establishing an optimized onshore–offshore delivery model, leveraging Vietnam’s skilled engineering workforce
• Setting up an office-in-office arrangement in Vietnam, fully aligned with project and security requirements
• Recruiting senior, project-specific engineers exclusively for the client, ensuring strong domain and technical alignment

3.2. Operate Phase

In the Operate phase, Reco took full responsibility for day-to-day delivery and operational excellence, enabling the client to focus on core business priorities. 

• Managed end-to-end development, post-development support, and defect resolution
• Deployed senior engineers to lead QA and defect management
• Introduced transparent reporting with advanced performance metrics

This operational structure significantly improved development speed, throughput, and consistency in quality.

3.3. Transfer Readiness

From the outset, the engagement was designed with transfer readiness in mind, ensuring the client retained long-term control and ownership. Our team ensured all processes, documentation, and governance models were designed for future transfer. The team is now operating stably, with a 0% turnover rate, to support long-term continuity. 

4. The Outcome

The implementation of the build-operate-transfer model delivered measurable improvements across cost, speed, quality, and workforce stability.

Development Speed & Throughput

• Development time reduced by 50% through rapid resource mobilization
• 95% on-time project delivery achieved using experienced, dedicated resources
• Faster time-to-market enabled by quick scaling of offshore operations

Cost Optimization

• 60% reduction in Total Cost of Ownership (TCO) through offshore delivery
• Lower cost of hire and reduced infrastructure investment
• Improved operational efficiency without sacrificing quality

QA & Delivery Efficiency

• Defect removal efficiency improved to 98%+
• Defect fixing rate reached 95% with zero re-dos
• Strong QA governance ensured consistent quality across releases