Building software isn’t just about writing code. It’s about finding the right people, setting up processes, and making sure everything works together.
And that’s where many companies hit a wall.
Hiring an in-house team from scratch takes time and money. Outsourcing is faster, but it often leaves you dependent on a vendor with little long-term control.
You start with an experienced partner who builds and runs the setup, then take full ownership once your team is ready.
It’s a great way to scale quickly while still keeping your future in your own hands.
In this article, we’ll walk you through exactly how the BOT process works, from early planning, through building and operations, to final transfer, so you know exactly what to expect at every step.
Let’s dive in!
Key takeaways:
BOT gives you a clear path to ownership. Unlike outsourcing, you end up with a team and infrastructure that’s fully yours.
It balances speed and control. You can scale quickly with a partner’s expertise while preparing for full independence.
The process builds long-term value. Each phase – build, operate, transfer – adds knowledge, stability, and processes you keep.
Table of Contents
Why choose the BOT model?
The build-operate-transfer (BOT) model solves a major limitation of traditional outsourcing: ownership.
With outsourcing, the vendor stays in control. With BOT, you get a clear path to building your own team and taking full ownership once the transfer happens.
It’s the perfect balance between outsourcing and hiring in-house.
You get the speed and know-how of a partner at the start, and the chance to fully own the outcome later on.
While it does cost more upfront than outsourcing, it’s usually more efficient long-term than hiring a brand-new team from scratch. Here’s a more detailed overview:
Build-operate-transfer vs. traditional outsourcing vs. in-house development: comparison
Category
Build-operate-transfer
Traditional outsourcing
In-house development
Ownership
Full ownership after transfer
Vendor retains control
Full ownership from day one
Time to ramp up
Moderate, depends on setup
Fastest ramp-up
Slowest, needs internal hiring
Control over team
Shared early, full control post-transfer
Low, vendor manages the team
High, your team and your rules
Integration
Stronger over time, starts gradually
Weak, team stays external
Strong, fully embedded
Cost structure
Higher upfront, lower long-term
Lower upfront, higher long-term
High both upfront and long-term
Scalability
Built to scale with ownership in mind
Vendor-dependent
Slower, takes time
Best for
Long-term capability and expansion
Short-to-mid-term delivery and savings
Full control and building internal expertise
BOT is best fit for long-term strategic initiatives where you want full ownership of the end result.
You get the benefit of external expertise upfront, with a team that becomes fully yours over time.
The build-operate-transfer (BOT) process: step-by-step guide
Next, we’ll discuss the key steps in the BOT process in detail.
Pre-build phase
The pre-build phase sets the foundation for everything that follows.
This is where you test your assumptions, choose the right partner, and put legal safeguards in place. If you skip or rush this stage, you risk expensive surprises later on.
It starts with market analysis and feasibility studies.
Done right, they give you a clear view of the technical requirements, potential risks, and the regulatory context you’ll be working in.
A strong feasibility study should answer questions like:
What technical architecture and resources will you need?
What roadblocks could slow you down
How will you adapt to market demands and regulations?
Are stakeholder expectations realistic?
Then, the next step is choosing the right BOT partner.
This decision shapes the whole project because their expertise, processes, and culture eventually become your own. You need to look at:
Proven technical skills
Experience in your industry
Cultural fit with your company
How they communicate and work day to day
Their financial health
References from previous clients
After that comes setting up the contract and legal framework.
BOT agreements are more complex than typical service contracts because they plan for ownership to change hands.
Your contract should spell out who owns the code, data, and processes created along the way.
And if you get it right, the pre-build phase gives you a solid foundation to move into the build phase with confidence.
Build phase
The build phase is where your new team starts to take shape.
It starts with hiring the right people. Every hire needs to meet your technical requirements and align with your culture.
Your BOT partner manages the process, from screening technical ability to testing cultural fit and long-term potential.
Building a team from scratch is hard. We’ll do it for you.Let’s talk →
You’ll be talking with our technology experts.
New team members need to understand your technical setup, tools, workflows, and company culture.
The earlier you bring them into your way of working, the easier the transfer will be later.
At the same time, you’ll also set up the tech infrastructure with your partner.
You need to plan for scalability, security, and long-term maintainability right from the start.
Your BOT partner usually takes care of the local setup, which includes:
Registering a legal entity
Acquiring office space
Meeting local regulations
Setting up secure facilities and connectivity
Providing hardware and software
If you work in a regulated industry, security and compliance need extra attention.
Your infrastructure has to meet industry standards from day one, including strict data protection measures, access controls, and audit trails.
The final part of the build phase is documentation and standardization.
It may seem tedious, but documenting every workflow, procedure, and best practice is what makes a smooth transfer possible down the line
Operate phase
At this stage, your BOT partner manages the team and resource and keeps service standards high.
This phase usually lasts 6–18 months, depending on scope and team size.
It gives you time to refine processes, prove the model works, and build confidence in the setup.
While your partner handles the day-to-day, you stay close – observing, learning, and gradually stepping in more.
Performance tracking keeps everything on course. The right metrics show both how operations are going now and whether the team is ready for transfer.
You should track:
Productivity and delivery speed
Quality of outputs
Team retention and satisfaction
Progress in knowledge transfer
This phase is also the right time to make improvements.
Your partner brings experience from other projects, and your team adds knowledge of your business. Together, you can find improvements neither side would find alone.
Technology upgrades and process refinements introduced here don’t just benefit your current operations.
They carry over during transfer, giving you a strong, efficient setup from day one.
Transfer preparation
This is where everything comes together.
And the focus shifts to documenting knowledge and making sure the handover goes smoothly.
Documentation should be your top priority.
Every process, decision point, and operational step should be recorded clearly. That’s what gives your team the knowledge they need to work effectively in the long run.
Good documentation should include:
Technical procedures
Business processes
Cultural practices that affect performance
Visual aids, flowcharts, and step-by-step guides for complex tasks
At the same time, structured training programs get the BOT team ready for handover.
They should focus on technical skills, business processes, and cultural fit, with plenty of hands-on practice.
And don’t forget about cross-training.
It makes sure several people can handle critical functions. That way, knowledge isn’t stuck with one person, and the team stays flexible as your operations evolve.
By the end of this phase, the BOT team is ready to run independently under your ownership.
Transfer phase
The transfer phase is where ownership officially moves to you.
All of the assets, intellectual property, contracts, and infrastructure change hands and you take full ownership.
The Transfer phase only happens once the team is ready to operate independently.
But even after ownership shifts, support from your BOT partner doesn’t end right away.
Post-transfer agreements give you a safety net during the early stages of independent operations. These usually define:
The scope of support available
How long it lasts
Escalation procedures if issues come up
Support gradually phases out as your team grows more confident and self-sufficient.
The last part of this phase is evaluating your new team’s performance. You should review:
Operational performance
Team satisfaction
Cost efficiency
How well strategic goals are being met
Handled carefully, the transfer phase leaves you with full ownership, a capable team, and a clear view of how the BOT model is performing under your control.
BOT process: FAQs
The BOT model makes the most sense for companies that want to expand for the long haul.
If you’re planning to grow in new markets, need to build long-term capability, or want more control than traditional outsourcing gives you, BOT is a strong fit.
It’s also ideal if you value owning your IP, culture, and processes from the inside.
At DECODE, we can build and operate your BOT team from our engineering hub in Croatia, giving you a dedicated, fully aligned team while you maintain oversight. Croatia is an excellent location for building an engineering team due to its highly skilled talent pool, strong tech ecosystem, and cost efficiency. Read more here →
A typical BOT engagement lasts 12–24 months, depending on the size and complexity of the team you want to build. The timeline usually includes:
Build phase – hiring and onboarding the initial team (3–6 months).
Operate phase – the team works under your guidance while DECODE manages HR, payroll, and processes (6–18 months).
Transfer phase – you take full ownership of the team, processes, and IP.
We tailor the engagement to your goals, so the timeline can be shorter or longer depending on how quickly you want to scale your team.
BOT makes sense if you’re building a team of at least 5 people. If you’re scaling fast or planning long-term, it’s even better.
Looking for a reliable BOT partner?
The BOT model isn’t a quick fix.
It takes planning and commitment to get right.
But when done well, it gives you something outsourcing never will – a team and setup that’s fully yours.
With the right partner, you’ll move through each phase with ease and end up with a team that’s fully ready to operate under your control.
And that’s where we come in.
If you’re curious whether BOT is the right move for your business, let’s talk. We’ll walk you through the process and show you what it could look like in practice.
A seasoned software engineering executive, Marin’s role combines his in-depth understanding of software engineering processes (particularly mobile) with product and business strategies. Humbly boasting 20+ years of international experience at the forefront of telecoms, Marin knows how to create and deliver state of the art software products to businesses of all sizes. Plus, his skills as a lifelong basketball player mean he can lead a team to victory.
When he’s not hopping from meeting to meeting, you’ll find Marin listening to indie rock, or scouring the latest IT news.
