The top challenges of the build-operate-transfer (BOT) model in software development and how to solve them

Most build-operate-transfer (BOT) projects don’t fall apart at the start. They fall apart somewhere in the middle.

It’s easy to buy into the promise: move fast, build a team, take it over later.

But once you’re in it, the day-to-day gets messy. Hiring takes longer than planned. The team loses steam. Handovers stall.

Without a clear plan, you end up with an expensive setup that never quite becomes yours.

That’s what makes BOT tricky. You’re not just outsourcing delivery – you’re laying the groundwork for long-term ownership.

And if you don’t solve the right problems early, they’ll come back to bite you later.

In this article, we’ll break down the biggest challenges in each phase of the BOT model and shows you how to solve them without losing momentum.

Let’s dive in!

Why choose the BOT model?

The BOT model offers something traditional outsourcing simply can’t match: a clear path to ownership.

Unlike regular outsourcing where you’re always leaning on outside vendors, BOT creates a clear path to gaining full control over the team you hire.

And while this means it’s usually more expensive, it’s still significantly cheaper than starting from scratch and hiring a full team yourself.

Here’s a more detailed overview:

Build-operate-transfer vs. traditional outsourcing vs. in-house development: comparison

BOT works best for long-term strategic initiatives where you want full ownership of the end result.

Traditional outsourcing still makes sense for short-term projects or when you need maximum flexibility to pivot quickly.

Staff augmentation can cover your temporary needs, while dedicated teams work well for ongoing non-strategic requirements.

If you’re building for the long term, BOT gives you a way to get there with control, context, and a team that’s truly yours without breaking the bank

But, it’s not easy to get it right. Next, we’ll cover the main challenges you’ll likely face.

Challenges of the build phase in the BOT model

Here, we’ll cover the main challenges during the build phase in the BOT mode.

Finding the right talent

Finding the right talent in BOT projects isn’t just about hiring developers who can code well.

You’re building a extension of your in-house team – one that needs to get your culture, communicate clearly across time zones, and stay engaged for the long term.

If you’re in fintech, healthcare, or similarly regulated industries, technical chops alone won’t cut it.

You need people who also understand compliance, user data sensitivity, and niche workflows.

But, hiring has gotten a lot harder.

Demand for specialized skills is off the charts and 75% of companies worldwide are struggling to find qualified people to fill open positions:

source: JobsPikr

Here’s where a solid BOT partner makes a big difference.

Instead of trying to copy-paste your home market hiring approach, you lean into your partner’s strengths.

They know how local job markets work – from pay expectations to how long people stay at a job and why they leave.

They’ll tap into their existing network and communities you probably don’t even know exist. These are the kinds of connections that get you in front of the best candidates.

But, you’ve got a role to play here, too. Work with your BOT partner and:

• Adapt your hiring criteria to the local market, including salary benchmarks, notice periods, and job expectations.
• Design interviews that test both technical skills and cultural fit.
• Involve your in-house team in interviews to give candidates a real look at how your company works.
• Don’t compromise speed for quality. Agree on a process with your partner that gives you the best of both worlds.

And don’t stop there.

Cultural fit isn’t something you fix later. It has to be part of your hiring process – make sure candidates get a feel for how you actually work.

Rushed hiring often leads to poor team chemistry or skill gaps that become major liabilities later.

The smart move is to co-own recruitment decisions – that way, you’re not just building a team.

You’re building the right team for your product, your culture, and your goals.

Infrastructure setup

Establishing a solid technical foundation in a BOT model is not just about spinning up servers or installing tools.

You’re building the backbone that’ll support the team long after the build phase ends. You need to build it with long-term growth, security, and compliance in mind.

And local regulations are one of the biggest challenges here.

Data protection laws vary wildly from one region to another, and it’s easy to get caught out if you try to apply your home market’s standards without adjusting.

The smart move? Go cloud-first.

This is where your BOT partner can save you a lot of pain. They understand the fine print and know how to set up cloud systems that meet both regulatory demands and your internal security standards.

Here’s what you should keep in mind:

• Go with cloud tools that give you room to grow without needing a rebuild six months in.
• Pick local providers who actually get the rules to avoid surprises down the line.
• Build your setup with a remote teams in mind from the start.
• Make sure your security protocols fit for how your team actually work.

Facility setup can catch you off guard too.

Your BOT partner will find and rent the right office space, but it’s not always as fast or plug-and-play as you’d think.

hings like lease negotiations and setting up the right tech infrastructure can add delays.

Think of infrastructure setup as more than just a technical task.

It’s a strategic phase that, if you get it right, sets you up for long-term success.

Tying BOT projects to business goals

Keeping a BOT project aligned with your business goals sounds easy enough at first.

Until the build phase starts and the day-to-day chaos takes over.

It’s very common for teams to get tunnel vision and focus only on delivery timelines, code quality, or sprint velocity while forgetting why the project exists in the first place.

This shows up in subtle but frustrating ways.

Maybe your engineers are hitting every technical milestone, but your leadership team still feels like something’s off.

Or your KPIs are moving, just not the ones anyone actually cares about.

The key is setting success metrics early. Not just vague statements about “growth” or “user adoption,” but specific markers tied to your product strategy and market goals.

Then, keep track of them – often. Here’s how to keep everyone on the same page:

• Define what success looks like before the first line of code is written.
• Connect those goals directly to your roadmap. Every project and feature should support a clear outcome.
• Set regular check-ins with your stakeholders. Real check-ins, not just calendar fillers.
• Make sure the team can pivot if the market changes. Flexibility is part of the plan, not a failure to stick to it.

Another piece that often gets overlooked? Documentation. It’s not just for engineers.

Recording architectural decisions, processes, and business assumptions gives everyone the context they need to when your priorities inevitably evolve.

And they will evolve, especially in BOT projects that stretch over years. The business goals that were urgent at the start might be irrelevant by the time the transfer happens.

That’s not a failure, it’s just reality.

It’s your job – alongside your partner – to build a system that handles change without derailing your strategic direction.

Challenges of the operate phase in the BOT model

Next, we’ll discuss the key challenges during the operate phase in the BOT mode.

Maintaining high service levels

Service quality tends to slip over time in long-term projects.

A team that started strong might slowly lose energy, especially if the transfer phase takes too long or hits a delay. And once that slide starts, it’s hard to reverse.

Monitoring tools can help you catch the early signs like dropped tickets, slower response times, missed SLAs.

But those are just symptoms.

The real issue is usually motivation. Without purpose, even the best team eventually starts going through the motions. And this is where operations management comes in.

You need to track more than just technical KPIs.

Keep an eye on how the team feels. Are they engaged? Is the team still growing? If not, you’ve got a bigger problem.

A few simple habits can make a big difference:

• Use lightweight monitoring systems that check both performance and engagement.
• Regularly talk to the team and take their feedback seriously.
• Don’t neglect professional development. Provide learning opportunities and mentoring to your BOT team.

Things also get harder when you’re managing across different time zones. Consistency becomes harder to maintain the more distributed your team is.

This is also where a good BOT partner makes a big difference.

They’ll know how to deal with it when motivation dips, where service quality typically drops, and what it takes to keep the team performing through the ups and downs.

Optimizing processes for efficiency

Optimizing processes during the operate phase isn’t just about getting faster or reducing waste.

Your partner is helping you build systems you will eventually inherit and that changes the game completely.

The BOT team probably runs like a well-oiled machine by this stage. But here’s the challenge: the BOT setup may not hold up once the team transitions in-house.

You might inherit processes that look great in theory but are too fragile, overengineered, or undocumented to maintain independently.

And if something breaks, you don’t want to be stuck trying to reverse-engineer someone else’s logic.

Here’s what you can do to keep things on track:

• Document everything – Future tweaks and troubleshooting will go a lot smoother if everyone understands the reasoning behind each decision.
• Don’t overengineer processes – Stick to tools and workflows your the team can support without needing niche specialists.
• Involve internal stakeholders – They’ll be working with these processes long after the transition, so their input is critical.

If the system only works when the BOT provider is around to manage it, it’s not really optimized.

Real efficiency is about creating processes that continue to work long after the official handover.

Managing and mitigating operational risks

Risk in BOT setups comes at you from two sides.

You’ve got your day-to-day operational stuff — people, tools, delivery — and then there’s everything that could go wrong when it’s time to hand things over.

Think of it like this: you’re running a live system and writing the playbook for when you fully take over that system later.

So, risk management in BOT shouldn’t just be a buzzword. Here’s how to make it real:

• Implement change management – Include both BOT team members and internal stakeholders in the process so all changes stay aligned with your business goals.
• Set up ongoing knowledge-sharing – Documentation reviews, team cross-training, even short handoff drills to check if someone else can actually run a process.
• Watch for dependency risks – If only one person knows how a key system works, that’s a ticking time bomb.
• Actively track risks – Treat risk like any other trackable issue. Put it on the board, assign owners, and review it regularly.

And don’t forget the wildcard: geopolitics.

BOT projects often span multiple countries, so sudden changes in visa policies, trade agreements, or local labor laws can disrupt your operations.

The best way to prep for this? Build flexibility into your planning and revisit those assumptions regularly.

In short, don’t wait for the transition to start thinking about risk.

If you’re only thinking about risks at the point of transfer, you’re already behind – the real work starts long before that.

Challenges of the transfer phase in the BOT model

Finally, we’ll go over the key challenges during the transfer phase in the BOT mode.

Effective knowledge transfer

In the transfer phase, you’re not offboarding an external partner. You’re onboarding a new part of your internal team.

And that’s what makes it challenging.

Your BOT team already knows the product, the workflows, and the stack. But knowing how to deliver isn’t the same as being set up to own it long-term.

Without the right context, they can still struggle to fully integrate into your company.

And the rest of your internal team? They need to understand how this new unit fits in, how to collaborate, and how to keep things moving once the BOT phase ends.

So, effective knowledge transfer is an absolute must. Here’s what that looks like:

• Start early – That’s when you’ve got the best shot at spotting gaps and documenting how things really work.
• Make sure everyone understand the job – Focus on architectural choices, product logic, and how things behave under pressure, not just feature walkthroughs.
• Pair across roles and teams – Let your existing team shadow the BOT team, and vice versa. Everyone learns faster when they see how the other side thinks.
• Build a knowledge base – If someone can’t find what they need mid-task and fix a problem independently, you’re not ready for a transfer.

And give it time. A rushed handover is a liability.

Just because people stop asking questions doesn’t mean they’re ready. Phased transfers give both sides breathing room to ask, test, and validate before full integration kicks in.

The goal isn’t just to document what’s been done – it’s to make sure your new members can fully step into their role and work well with the rest of your organization.

If you want the transfer to stick, don’t treat knowledge transfer as an afterthought. Make sure you get it right from the start.

Ensuring operational continuity

Keeping operations steady through the transition phase is crucial.

You’re not handing work off to a new team, you’re absorbing it.

And if you don’t manage the switch carefully, the disruptions can shake customer confidence, slow down delivery, or even overload your internal systems.

It’s especially challenging if your operations run 24/7 or span multiple time zones.

You can’t just pause and reboot – everything needs to keep moving while the ownership shifts.

A phased approach is your best move here.

It gives you time to stress-test key workflows, clarify roles, and iron out any gaps – all the while your BOT provider is still in place to help you deal with any issues

Here’s what that looks like in action:

• Run overlapping teams – It’s more effort upfront, but it keeps service uninterrupted if you need to fix something on the fly.
• Have a single point of contact for both teams – This keeps communication clear and everyone on the same page when things get busy.
• Break the handover into logical chunks – Prioritize dependencies and stagger transitions so no system is left unsupported.
• Use your partner’s post-transfer support – Even just a few weeks of extra support from your BOT provider can make a huge difference in the early days of internal ownership.

But it’s not just about process – it’s about people.

You’ll face real risks if key team members choose not to stick around through the transition.

That’s why retention planning matters, even if you’re only bringing part of the team in-house.

And while you’re at it, document like you’re planning for a worst-case scenario. That means:

• Daily workflows and escalation paths
• Known bugs and how they’re usually handled
• System and team dependencies

The smoother the handover is behind the scenes, the less anyone notices it on the outside.

And that’s the whole point: to keep things running, even as everything changes

Overcoming resistance to change

Resistance to change is often quiet and easy to miss.

A developer avoids the new deployment tool. A team keeps defaulting to their old workflow. A manager delays decisions with vague internal reviews.

It’s not rebellion, it’s hesitation. And that hesitation is rooted in something deeper: uncertainty.

Even when the BOT team is becoming your team, the shift from external partner to internal ownership can trigger tension.

People wonder if they’ll keep up, if they’ll have the right support, or if they’re expected to do more with less.

Then there’s culture. The transition to becoming a fully integrated part of your organization doesn’t happen instantly.

So what can you do?

The key is starting early. Bring the BOT team into the transition planning while they’re still operating in “partner mode.”

And be clear. About what’s changing, why it matters, and how it affects them. A few practical steps go a long way:

• Talk early and often – Not just about tasks, but about expectations, roles, and what success looks like.
• Involve future system owners in design decisions – If they’re going to run it, they should help shape it.
• Provide hands-on training – Don’t just use docs and videos. People remember what they’ve done, not what they’ve seen.

And don’t ignore the basics.

You need to prep for local labor laws and salary expectations when converting BOT staff into full-time employees. So loop in legal and HR early.

Because at the end of the day, the biggest risk isn’t whether your new internal systems work – it’s whether the people running them feel supported enough to make them work.

If they do, that’s how you make the change actually stick.

Challenges of BOT in software development: FAQs

Need a BOT partner?

There’s no plug-and-play when it comes to BOT.

Every setup comes with trade-offs, decisions, and a learning curve.

But with the right partner, you don’t have to figure it out on your own.

We’ll help you build a team that fits your product, your culture, and your long-term goals -and guide you through every stage of the BOT process, from setup to transfer.

Whether you’re still weighing your options or already planning next steps, we’re happy to talk through what the process could look like for you.

Feel free to reach out and our team will set up a quick meeting to discuss your needs in more detail.