The BOT model is being employed more and more by companies—particularly technology and IT companies—to establish offshore development centers or services hubs in low-cost areas such as India or Eastern Europe.
From a monetary point of view, the BOT model is advantageous in the following ways:
Lower initial investment risk: Companies don’t require a heavy investment in infrastructure, recruitment, or local conformance on day one.
Operational effectiveness: A third-party provider develops and runs the operation first, optimizing costs and processes prior to handover.
Speed to market: It enables companies to go live more quickly in new markets without developing everything in-house.
Controlled expansion: Once successful, the business can take over operations (the “handover” phase), with complete control of an established and trained workforce.
It is widely utilized by companies seeking to expand tech operations without sacrificing quality or control.