Build Operate Transfer India for GCC Setup

Want to build a Global Capability Center in India but avoid the upfront complexity and risk? Build operate transfer India is the preferred model for US companies that want long-term ownership of an offshore team without navigating entity setup, compliance, and infrastructure alone. Under the build operate transfer model, a private partner handles the build phase and operate phase, then transfers full ownership of the legal structure, team, and intellectual property to your private entity after a defined concession period.

Originally used in large scale infrastructure projects and public private partnerships, the BOT framework is now widely adopted for offshore delivery centers and global in house centers in India. It offers structured risk mitigation, faster setup, and a clear exit strategy compared to traditional outsourcing or setting up a wholly owned subsidiary from day one.

In this guide, you’ll learn how build operate transfer India works step by step, what it typically costs, and how to structure your bot agreement for a seamless transfer and long-term project success.

What is the Build Operate Transfer model in India?[toc=BOT Model in India]

Build operate transfer (BOT) is a three-phase framework where a private partner builds your offshore center in India, operates it for a defined period, and then transfers complete ownership back to you. The BOT model originally emerged from public private partnerships and large scale infrastructure projects, but today it is the most popular route for setting up Global Capability Centers, offshore delivery centers, and global in house centers in India.

For a broader view on why companies choose India for offshore delivery and global capability center strategies, see Why Companies Setup GCC in India.

From our experience helping global companies scale their India operations, here is how each phase works:

• Build phase (months 1-6). Your service provider sets up the legal structure, secures office space and IT infrastructure, and recruits your initial team from India's global talent pool.
• Operate phase (months 6-18). The private partner manages HR, payroll, regulatory compliance, vendor management, and knowledge transfer while you retain full strategic control over the team's work.
• Transfer phase (months 18-24). Employees, intellectual property, infrastructure, and processes transfer to your own entity, giving you a fully owned captive center.

For a full step-by-step process of GCC setup in India, from defining goals to operating, check this practical walkthrough. Setting Up a Global Capability Center (GCC) in India

Who is the BOT model best for?

Not every company needs a build operate transfer arrangement. Here is a quick framework:

• BOT works well if you are planning a team of 10-50+ people in India and want to own the center long-term.
• BOT works well if you need external expertise for infrastructure setup, local hiring, and regulatory compliance but want to eventually run things yourself.
• BOT works well if you want risk mitigation during the early stages without giving up ownership, unlike traditional outsourcing where the vendor keeps the team permanently.
• BOT may not be the right fit if you need fewer than 10 people. An Employer of Record gives you the same compliance coverage and talent access without the overhead of a full center setup.
• BOT may not be the right fit if you want to stay in a managed model permanently. In that case, a managed GCC or staff augmentation model is simpler.

If you’re evaluating expansion options, our roundup of Top GCC Setup Consultants in India can help you compare companies and choose the right partner.

Learn more about different GCC models and how BOT fits into India’s broader expansion strategy in this complete guide to Global Capability Center (GCC) in India. Global Capability Center (GCC) in India guide

For most Series A to mid-sized US companies hiring engineering talent in India, the smartest path is to start with an EOR like Wisemonk to get your first hires onboarded in days, then scale into a BOT structure as the team grows, and eventually transfer to your own entity when the operations are mature. That phased approach gives you speed now and ownership later, without the risk of going all-in on day one.

See the difference between Employer of Record and full GCC setup, important context if you’re evaluating a phased BOT path. EOR vs. GCC in India: Choosing the Right Model

Now that you understand how the BOT framework operates, let's look at what it actually costs and where the real risks show up.

How much does BOT model cost in India?[toc=BOT Model Cost in India]

A typical build operate transfer engagement in India costs $800,000 to $2 million over 24 months for a 20-person team. That is still 40-60% less than building the same team in the US through a wholly-owned subsidiary.

From our experience helping 300+ global companies set up operations in India, here is how the cost breaks down across each phase:

• Build phase ($150,000-$500,000). Covers entity registration, office space, IT infrastructure setup, initial recruitment from India's talent pool, and legal compliance with central and state labor laws.
• Operate phase ($15,000-$50,000/month). Includes your service provider's management fee (typically 15-25% of payroll), employee salaries, benefits administration, and ongoing project management across your team.
• Transfer phase ($50,000-$150,000). Covers entity formation if transitioning from an EOR arrangement, employee contract restructuring, IP transfer, and post-handover advisory support.

Your total cost depends on team size, roles, city selection (Bengaluru costs more than tier-2 cities like Jaipur or Coimbatore), the duration of the concession period, and the scope of services your BOT partner provides.

Compare BOT versus traditional GCC costs and optimization strategies in our breakdown of How much does it cost to set up a GCC in India? Cost to Set Up a GCC in India

For context, setting up a wholly-owned subsidiary in India from scratch typically costs $500,000 to $3 million in the first year alone. The BOT model spreads that investment across a longer timeline and shifts much of the early-stage financial risk to your private partner.

If you’re weighing faster entry into the market, this post on how to Build an Offshore Team in India explains the first steps before transitioning into BOT.

But cost is only one side of the equation. The real reason companies choose build operate transfer India is about risk, speed, and control. Let’s break that down.

What are the benefits of Build Operate Transfer(BOT) model in India?[toc=Benefits]

Build operate transfer India reduces entry risk, accelerates setup, and gives you long-term ownership without the early operational burden.

Here is why the bot model works in practice:

• Reduced risk: The private partner manages infrastructure setup, regulatory compliance, and local expertise during the build phase and operate phase, enabling low risk market entry.
• Lower upfront capital: You avoid heavy project financing and public funds–style exposure while still building a private entity through a structured bot agreement.
• Faster setup: The build operate transfer framework allows hiring and infrastructure setup to run in parallel, unlike traditional subsidiary formation.
• Talent access: You tap into India’s global talent pool and established talent networks for offshore delivery centers and global in house centers.
• Cost effectiveness: The bot model supports cost optimization by limiting long-term service provider margins after the transfer phase.
• Structured knowledge transfer: During the operate transfer stage, intellectual property, processes, and project management capabilities move to your private organization.
• Clear exit strategy: A defined concession period ensures seamless transfer ownership instead of open-ended outsourcing.
• Time zone leverage: Operating across multiple time zones increases execution velocity for digital transformation initiatives.

India’s diverse regional hubs matter for cost and talent strategy, explore GCC Hubs in India to see where different roles thrive.

The Build operate transfer model in  India is a strategic solution for private companies that want risk mitigation upfront and full control later.

Now let’s look at how to structure your bot contracts correctly and how to get started with Wisemonk.

Get Started with Wisemonk EOR for Build Operate Transfer India[toc=Wisemonk EOR]

Wisemonk is an India-specialist Employer of Record and GCC partner that helps global companies hire, scale, and transfer to their own entity with clarity and compliance.

If you’re planning a build operate transfer India strategy for your GCC setup, we help you move from idea to ownership without getting stuck in legal setup, hiring delays, or compliance risk. We onboard your initial team quickly, manage payroll and statutory compliance across Indian states, support the right legal structure, and design a clean transfer phase so ownership moves smoothly to your private entity.

In simple terms, we help you build your India team, operate it with full local compliance, and transfer it when you’re ready, giving you speed in the early stage and full control long term.

If you’re evaluating BOT for your India expansion, book a consultation with our GCC experts and map out the right structure for your stage and scale!