Build–operate–transfer (BOT): an emerging entry mode for service offshoring

Abstract

Build–operate–transfer (BOT) is a well-established solution used in the engineering and construction industries for building different types of infrastructure (e.g. railways, highways, power plants). In recent years, BOT has increasingly been adopted by companies in the service industry as a mode for entering foreign markets. BOT in service offshoring (SO) is characterised by a number of significant peculiarities (e.g. different numbers of involved parties, fee methods, lengths of the concession period), which may call into question the possibility of extending existing findings that relate to infrastructure projects. The aims of this work are as follows: to collect and systematise existing knowledge on engineering and construction BOT projects; to highlight – through an exploratory case study – how these results could be applied to BOT in SO; and to shed light on the factors affecting the choice between different entry modes (including BOT).

Keywords:

• BOT
• service offshoring
• entry mode
• case study