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Benefits of Build-Operate-Transfer Model

Benefits of Build-Operate-Transfer Model

The build-operate-transfer outsourcing model has gained quite a bit of popularity over the last few years, as businesses looking to expand their operational capabilities, have begun to adopt this strategy more and more. But before exploring the benefits that have made this solution so well-known, among companies carrying out their activity in various different sectors, let’s see how this model works, and thus, gain a better understanding of the matter.  

To put it simply, this engagement model refers to a contractual relationship in which the service provider undertakes to build a software development centre, make it fully operational, and then transfer its ownership to the hiring company. As its name clearly suggests, the build-operate-transfer model, or BOT for short, involves three different phases; the first one, consisting of finding the right office spaces, assembling the team, and taking care of administrative and legal frameworks, the second stage, which entails the actual management and development of products, and the third and final phase, that includes transferring all assets, employees, and intellectual property rights to the client.

As we have mentioned before, BOT services have sparked businesses’ interest more and more, seeing that the engagement model provides major benefits, such as increased control, cost-effectiveness, faster time-to-market, scalability, or access to the latest technologies. But, let’s take them one at a time.

Increased control

One of the most appealing advantages that BOT offers those who resort to it, is the complete control, that comes bundled with a superior level of transparency. In this sense, vendors will be communicating with their clients directly, running every decision past them, throughout the entire collaboration between the two parties. This way, hiring companies will be able to make sure that offshore or nearshore teams are aligned to their business processes and will be offering feedback constantly, so that BOT service providers can make the necessary adjustments.


The increased control that we have spoken about earlier applies to costs as well; in this context, contracting businesses enjoy the advantage of reduced financial risks, since their outsourcing partners are already familiar with the ins and outs of the local marketplace. This also translates into a higher chance of succeeding and expanding into a brand new market, that hiring businesses would otherwise have a tough and expensive time entering. What’s more, all expenses occasioned by the costly process of setting up a remote team in another country, are avoided, which includes those surrounding interviewing and searching for skilled professionals.  

Faster time-to-market

Companies that turn to the build-operate-transfer model have the possibility of extending the working time of one day, being able to benefit from an almost 24/7 development process cycle, in cases where the time difference allows it. This means that the product will be reaching the market that it is destined for, in a shorter period of time, enabling hiring businesses to enjoy a greater level of profitability. Furthermore, by opting for this particular outsourcing engagement model, companies can save several months, that would have been intended for setting up offices and gathering team members, whereas the BOT services provider can start right away.


With customers’ expectations and demands constantly changing and growing, companies need to be able to quickly adapt; and this is why the benefit of rapid scalability represents an advantage that catches the eye of many businesses looking to enter new markets. Whether hiring parties are in need of new team members, or wish to scale their remote team down, the build-operate-transfer services provider can promptly respond to their requirements. And not to mention that the outsourcing partner will also be handling all documentation and activities surrounding the onboarding process, that can otherwise be time-consuming for contracting companies.

Access to the latest technologies

Last, but certainly not least, we will be touching upon the benefit of easily accessing state-of-the-art technologies. In this regard, those offering BOT services can assist their clients in choosing the right technologies, in order for them to successfully get closer to their business objectives. After deciding upon the best tools and technology, outsourcing partners will provide hiring parties with the equipment, hardware, and software, that they need, all of this without companies having to invest in such tools. The experience that remote specialists possess in the latest technologies, is also a major perk, that contracting businesses should be aware of.    


Companies have begun to shift their attention towards the build-operate-transfer model, due to the great benefits that the latter brings to the table. Easy access to cutting-edge technologies, cost-effectiveness, faster time-to-market, increased control, and rapid scalability are just some of the advantages that are driving businesses to explore the opportunities that the engagement model has to offer.

Build operate transfer IT services with TechTalent

Backed by 350+ IT consultants, over 250 delivered Agile projects, and over 10 years of creating successful project teams for customers in various industries, TechTalent is the go-to company when deciding to resort to the build-operate-transfer model.