---
title: "What Is Build-Operate-Transfer (BOT)?"
url: https://www.wisemonk.io/glossary/what-is-build-operate-transfer-bot
lang: en
---

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# What is Build-Operate-Transfer (BOT)?

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**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.

1. **Build:** the partner sets up the operation, hiring talent, arranging facilities, and handling local compliance.
2. **Operate:** the partner runs the team day to day for a period, often around 18 to 36 months, while it stabilizes.
3. **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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