Build-Operate-Transfer (BOT) is an offshoring model in which a specialist partner sets up and runs an offshore team or center for a company, then transfers full ownership of that operation to the company after an agreed period. It is often used as a stepping stone to a wholly owned offshore center, giving a company a fast, lower-risk start before it takes everything in house. For firms weighing how to build a team in a market like India, BOT sits between outsourcing and a fully owned entity.
How does the BOT model work?
As the name suggests, BOT runs in three phases, each with a clear purpose.
- Build: the partner sets up the operation, hiring talent, arranging facilities, and handling local compliance.
- Operate: the partner runs the team day to day for a period, often around 18 to 36 months, while it stabilizes.
- Transfer: ownership of the entity and employees is handed over to the company, which then runs it directly.
When does BOT make sense?
BOT suits companies that want eventual ownership but not the upfront burden of building from scratch. It tends to fit these situations.
- Long-term intent: the company wants to own its offshore team but plans for that over time.
- Limited local knowledge: it lacks the in-country expertise to set up an entity quickly on its own.
- Risk management: it prefers to prove the model before committing to full ownership.
BOT compared with other models
BOT is one of several ways to build offshore capacity, sitting between outsourcing and a fully owned center. The table places it in context.
| Model | Ownership | Best for |
|---|---|---|
| Outsourcing | Vendor owns the team | Defined, transactional work |
| BOT | Transfers to client later | Phased move to ownership |
| Captive center | Client owns from day one | Full control and IP |
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