Why Companies Want the Build-Operate-Transfer Model

Expanding into new markets is never simple. High costs, local regulations, and the challenge of building teams from scratch often slow companies down. That’s where the Build Operate Transfer model comes in. With BOT, you partner with a service provider who sets up operations, manages them, and then transfers full ownership back to you. It’s a strategy that blends outsourcing efficiency with the security of long-term control.

In this article, you’ll see why more companies are turning to BOT, what industries are using it best, and how real-world examples prove its value. You’ll also learn about the risks, the advantages, and where this model is headed in the future. Keep reading to learn more!

Why Companies Choose the BOT Model to Outsource Talent

Reducing Risks in Global Expansion.

Entering a new market comes with financial and operational uncertainty. Setting up a local entity, hiring staff, and navigating compliance can be overwhelming if you’re unfamiliar with the region. The Build Operate Transfer model lowers that risk by letting a partner handle the setup phase before transferring ownership to you.

A report by McKinsey shows that nearly 50% of cross-border expansions fail due to poor execution and a lack of local knowledge. BOT reduces that likelihood by allowing your company to benefit from an experienced operator who already understands the market.

Accessing Skilled Talent in Emerging Markets.

Talent shortages in developed markets push companies to look abroad. The BOT model makes this easier by tapping into established talent pools in regions like Latin America, Eastern Europe, and Asia. You gain access to developers, engineers, and support staff without navigating the complexities of local hiring yourself.

According to Korn Ferry, the global talent shortage could reach 85 million people by 2030, representing $8.5 trillion in lost annual revenue. BOT gives you a direct path to skilled professionals, while eventually ensuring you have full ownership of that workforce.

Lowering Initial Investment Costs.

Starting operations in a new country requires significant upfront capital. Real estate, infrastructure, recruitment, and compliance all add up quickly. The BOT model spreads those costs across phases. You only take on full responsibility once operations are stable and profitable.

This phased investment structure appeals to companies looking to test a market without committing millions upfront. It’s a safer alternative to establishing a wholly owned subsidiary from day one.

Streamlining Entry Into New Geographies.

Speed matters when entering competitive markets. Traditional expansion models can take months or even years to get off the ground. BOT accelerates this process by using the operator’s existing infrastructure and networks to start operations almost immediately.

Deloitte’s Global Outsourcing Survey found that 59% of executives use outsourcing primarily to cut time-to-market. BOT takes that benefit further by not only reducing launch timelines but also handing you full control once the foundation is in place.

Build Operate Transfer Model Popularity and Market Attractiveness

Global Trends Driving BOT Model Popularity:

The Build Operate Transfer model is gaining visibility as companies rethink global strategies. Rising labor costs in developed economies, geopolitical shifts, and digital transformation pressures are pushing firms to consider alternatives to traditional outsourcing. BOT stands out because it combines operational efficiency with a clear path to ownership.

According to PwC, 73% of CEOs are actively seeking new operating models to manage disruption and market uncertainty. BOT offers exactly that, an adaptable framework that balances speed with long-term control.

BOT Model Market Attractiveness for Technology Companies:

Technology firms, especially those scaling software development, data operations, or cloud services, are increasingly drawn to BOT. It gives them rapid access to specialized skills without the commitment of building from scratch. Unlike outsourcing alone, BOT ensures it retains intellectual property rights and team continuity after transfer.

IDC projects that global spending on digital transformation will hit $3.9 trillion by 2027, and companies that expand through BOT can position themselves to capture more of that growth by entering new markets efficiently.

Why BOT Is Gaining Ground in Emerging Regions:

Regions such as Latin America, Eastern Europe, and Southeast Asia have become prime destinations for BOT arrangements. They offer skilled workforces, time-zone alignment, and competitive costs, making them more attractive than offshore-only models.

For instance, the World Bank highlights that Latin America’s tech talent pool is expanding at nearly 7% annually, driven by both local education initiatives and foreign investment. This growth directly fuels the appeal of BOT in the region.

Enterprise Confidence in BOT Partnerships:

The BOT model is no longer experimental. Multinational corporations in finance, telecommunications, and IT have embraced it as a way to balance agility with strategic control. Confidence grows because companies see measurable ROI in talent access, cost predictability, and smoother transitions compared to traditional build-outs.

Deloitte reports that 65% of executives view hybrid partnership models like BOT as more sustainable than pure outsourcing. This perspective reinforces BOT’s position as a competitive, long-term solution for global expansion.

The Best BOT Model Applications in Companies

1. BOT in Software Development and IT Services:

One of the most common applications of the Build Operate Transfer model is in software development and IT services. Companies use BOT to establish development hubs in talent-rich regions where hiring locally would be costly or slow. This approach secures access to developers, DevOps specialists, and cybersecurity experts while maintaining long-term ownership of the team.

According to Statista, the global IT outsourcing market is expected to reach $512 billion by 2024, reflecting the demand for flexible models like BOT that go beyond standard outsourcing. For companies scaling digital products, BOT creates an environment where teams can be built quickly, operated efficiently, and then transferred into direct control.

2. BOT for Manufacturing and Industrial Operations:

In manufacturing, BOT is applied to set up factories or assembly lines in new regions without the initial burden of running them independently. The operator handles regulatory compliance, logistics, and workforce training until the handover. This model reduces risks tied to capital-intensive investments and supply chain disruptions.

A study by UNCTAD notes that global foreign direct investment flows rose to $1.5 trillion in 2021, with a significant share going into emerging markets for industrial operations. BOT helps companies capture these opportunities while keeping flexibility during the early operational phase.

3. BOT in Shared Services and Back-Office Functions:

Shared service centers, including finance, HR, and IT support, are another area where BOT thrives. By delegating the build and operate stages to a partner, companies streamline processes like payroll, compliance reporting, and procurement before assuming full control. This structure is particularly attractive for organizations with high-volume, repetitive processes.

Deloitte reports that 80% of Fortune 500 companies rely on shared services centers to cut costs and improve efficiency. BOT provides a more controlled entry into these setups by ensuring eventual ownership rather than long-term reliance on third parties.

4. BOT for Customer Support and Call Centers:

Customer support is often one of the first functions companies expand globally. BOT allows firms to establish call centers in markets with skilled, multilingual workforces while reducing operational risks. The model ensures the support operation can scale quickly and be transferred seamlessly once processes and teams are stable.

Research from Grand View Research shows the global call center outsourcing market was valued at $91 billion in 2022 and is projected to grow at a CAGR of 9.1% through 2030. BOT offers a hybrid approach, giving companies the speed of outsourcing while guaranteeing eventual ownership of the customer experience.

Our Take on The Future Outlook of the BOT Model

How AI and Automation Are Shaping BOT Partnerships:

Artificial intelligence and automation are transforming how Build Operate Transfer arrangements are structured. Operators increasingly use AI for talent management, compliance monitoring, and workflow automation before handing operations over. This reduces the cost of transition and improves efficiency for companies taking control.

According to McKinsey, AI adoption has more than doubled since 2017, with 50% of businesses now using AI in at least one function. As adoption grows, BOT setups will rely more heavily on intelligent automation to ensure smoother transfers and stronger long-term value.

The Role of BOT in Nearshoring and Globalization:

Nearshoring is gaining traction as companies seek resilient supply chains and closer collaboration with offshore teams. BOT is becoming a preferred model because it offers both immediate access to nearshore talent and a clear exit path into ownership.

KPMG reports that 65% of executives are rethinking their supply chains to prioritize resilience and proximity. This shift positions BOT as an attractive mechanism for firms expanding into markets like Latin America and Eastern Europe, where both proximity and skilled talent align with global strategies.

Predictions for BOT Adoption Over the Next Decade:

The next decade is likely to bring higher adoption of BOT models across multiple industries, from technology and finance to healthcare and manufacturing. As labor markets tighten and compliance grows more complex, BOT’s phased approach to expansion will appeal to companies seeking lower risk and greater control.

Research from Everest Group suggests that hybrid sourcing models, including BOT, will account for 30–35% of global service delivery by 2030. This indicates that BOT will shift from being a niche solution to a mainstream strategy for global growth.

Ready to Implement the Build-Operate-Transfer Model?

The Build Operate Transfer model is no longer a niche expansion strategy. It is becoming a mainstream approach for companies to balance growth with risk management. As Deloitte notes, 65% of executives believe hybrid partnership models like BOT provide more sustainable outcomes than traditional outsourcing, making this framework a clear path forward for global operations.

At BOT LATAM, we have seen firsthand how structured BOT partnerships help organizations enter new markets faster, reduce operational risks, and build long-term ownership of their teams. By combining regional expertise with a transparent operating model, we guide companies through each stage: build, operate, and transfer, ensuring a smooth transition to full control. For businesses considering expansion in Latin America, our approach delivers both immediate results and sustainable growth. Contact us to learn more!