Insights

Access the latest news and articles of interest to the Enterprise Software Ecosystem. Emerging trends, key players in the region, nearshoring, hiring talent, cost reduction strategies and operational best practices.

Comparing the BOT Model vs the As-a-Service Framework cove image

Comparing the BOT Model vs the As-a-Service Framework

For years, tech companies expanding offshore that were looking for the advisory of a local expert, favored the Buildโ€‘Operateโ€‘Transfer (BOT) model to launch Global Capability Centers (GCCs) or Shared Services Centers. The specialized vendor built the operation from scratchโ€”dedicated infrastructure, a new legal entity, admin staff hiring, policiesโ€”then stabilized it and transferred it to the client after a set term. Because the vendor assumes execution risk, BOT pricing typically includes a margin on top of the total operation (a % uplift). Itโ€™s more expensive than the Do-It-Yourself approach, but the premium is often justified: it reduces unknownโ€‘country risk and limits budget overruns with a turnkey, governed path to transfer.

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Financial Analysis of Starting Operations in Mexico: Cost, Risk, and Time-to-Value

For North American B2B tech companies, expanding into Mexico offers both cost savings and access to top talentโ€”but the approach matters. A DIY setup can be slow, risky, and expensive, while the Subsidiary-as-a-Service (SUBaaS) model delivers speed, compliance, and significant savings. By paying only for what they use, companies can reduce operational costs by up to 70%, avoid legal and compliance pitfalls, and launch in weeks instead of months. SUBaaS makes nearshore operations scalable, capex-friendly, and investor-approvedโ€”helping businesses stay lean and competitive in a volatile global economy.

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