Captive vs BOT

Captive vs BOT vs Managed GCC: The Decision Matrix

Direct Captive, Build Operate Transfer (BOT) and Managed Global Capability Centre are the three viable operating models for an India GCC. Pick by the variables you actually need to optimise: speed, risk transfer, long term cost or intellectual property control.

The five variable matrix

Score the three models on the five variables that matter.

Time to first 25 Full Time Equivalents: Managed 45 to 60 days, BOT 90 to 120 days, Direct 150 to 180 days.
Capex outlay: Managed zero, BOT zero, Direct USD 0.5 to 2.0 million.
Long term cost (5 year total): Managed highest, Direct lowest, BOT in between (transfer premium offsets risk transfer).
Risk transfer during build: Managed full, BOT full during operate, Direct none.
Intellectual property and brand control: Direct full from day one, BOT full post transfer, Managed via contract assignment.

Default recommendations by buyer profile

Fortune 500 with prior India experience: Direct.
USD 100 million to 1 billion mid market, first India GCC: Managed for 0 to 50 Full Time Equivalents, transition to BOT or Direct beyond.
Risk averse Banking, Financial Services and Insurance buyer with multi year horizon: BOT.
Speed critical pilot (under 30 Full Time Equivalents, 12 month horizon): Managed.

Frequently asked questions

Can we start Managed and convert to Direct later?

Yes, with the right contract that includes a transfer clause and a clean intellectual property assignment from day one. Most Managed contracts now include this provision.