Set up and Operate Model (Shared Service, Outsourcing or B-O-T)

The BOT model involves three phases: Build, where a partner sets up the entity and infrastructure; Operate, where they manage HR, payroll, and delivery; and Transfer, where the entire operation, including staff and assets, is legally handed over to the client after a set period.

Shared Services centralize internal business functions (like HR or Finance) to serve various departments within the same company, maintaining high control. Outsourcing involves hiring an external third-party provider to perform specific tasks, often focusing on cost reduction and specialized external expertise rather than internal integration.

Companies use the BOT model to minimize entry risks in new markets. It provides access to local expertise, faster time-to-market, and reduced upfront capital expenditure. It allows businesses to "test the waters" with a managed team before committing to full-scale independent legal ownership.

High-volume, repetitive, and rules-based processes are ideal for Shared Service Centers. Common functions include Finance and Accounting, Payroll processing, IT support, Human Resources, and Procurement. Centralizing these tasks improves data consistency, process standardization, and significant operational cost savings.

This model reduces risk by leveraging a local partner’s knowledge of regulatory compliance, labor laws, and tax frameworks. Since the partner manages the initial setup and hiring, the client avoids common pitfalls associated with navigating unfamiliar legal landscapes and local market recruitment challenges.

Yes, for Small and Medium Enterprises (SMEs), the BOT model is highly cost-effective. It eliminates the need for large initial investments in office space and legal infrastructure. It allows SMEs to scale their global footprint using a "pay-as-you-grow" approach while utilizing the provider’s existing operational scale.

During the Transfer phase, the service provider moves the legal entity, physical assets, and the entire workforce to the client. This includes a comprehensive knowledge transfer, handover of standard operating procedures (SOPs), and finalization of legal documentation to ensure the client can run the center independently.

A BOT model is better for rapid entry and risk mitigation, as a partner handles the initial hurdles. A Captive Center is preferred when a company already has local expertise and wants 100% control from day one, though it requires higher upfront investment and effort.

The Operate phase usually lasts between 2 to 5 years. This duration ensures the processes are stabilized, the team is culturally integrated, and the operation has reached a maturity level where the client feels confident taking over full management.

Yes, the BOT model is highly customizable for IT services. It allows you to build dedicated software development teams or R&D centers where you retain full control over the source code, methodology, and project management while the partner handles administrative tasks.