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Build-Operate-Transfer – Not Your Average Outsourcing Strategy

Build-Operate-Transfer – Not Your Average Outsourcing Strategy

The build-operate-transfer model is an alternative to the traditional method of outsourcing, that has won over many companies and continues to be one of the most sought-after solutions for businesses of all sizes. An accelerated time-to-market, minimal risks, cost-effectiveness, and absolute control are some of the main benefits that those who choose this service get to reap.

How does BOT work?

As its name suggests, the build-operate-transfer model includes three phases; the first stage consists of analyzing and assessing the hiring business’ needs, and, further, of putting together the right team of IT specialists. The vendor selects office spaces, sets up infrastructures, and handles all legal work that concerns the future fully operational development center.

The next stage is where the actual software development happens; the project’s progress is closely monitored by the vendor, who communicates and reports everything back to the hiring company. Moreover, the contracted party makes sure that the remote team perfectly aligns with the hiring business’ goals and culture, and even provides training or team coaching, if needed.

The third and final stage consists of the moment in which the client gains ownership of its new subsidiary. The outsourcing company transfers all legal rights, data, assets, and intellectual property to the contracting party, who now has acquired a team of full-time employees that know the ins and outs of their hiring business.

Which companies should consider BOT?

Having described how BOT works, it only makes sense that we now point out which companies would have the most to gain out of adopting this type of outsourcing strategy. And right from the start, we can see that businesses that are looking for a short-time collaboration or have a small project that they need help with, would probably want to avoid the build-operate-transfer model.

On the other hand, an extensive need for talent availability will go better with a model such as BOT, that offers long-term gains and assists organizations in acquiring that much needed help. Companies that wish to gain extra time and resources to focus on core activities are also a great match for the build-operate-transfer model, as the vendor handles all administrative and legal work concerning the remote team. Furthermore, ownership transfer is an easy process for the contracting party, which can easily integrate its newly acquired team with no trouble at all.

BOT is not your average outsourcing strategy

The build-operate-transfer model offers benefits that other outsourcing strategies do not. The hiring business acquires an already trained and capable team, retaining talent is much easier, and costs related to recruitment or onboarding are avoided, making BOT a cost-effective solution. Compared to other business models, BOT may also seem unconventional, but its advantages are hard to beat by the more traditional ways of outsourcing, such as the dedicated or extended team model, that are more wide-spread.


When it comes to software development models, BOT stands out due to its unique features. Its three phases lead up to the hiring company’s acquirement of a fully operational remote team, that can tackle any challenges that are thrown in its path, and that is already familiar with the contracting business’ culture and working style.

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 set up a BOT development centre.