Build-Operate-Transfer offshore pod for a European product company

A European product company wanted a long-term India presence — eventually as a wholly-owned subsidiary — without spending the first eighteen months on entity setup, payroll and compliance. We built and operated the pod under our entity with a planned transfer milestone.

Outcome

Operational pod in week four; entity transfer planned at 18 months

Context

The client is a European product company that had decided India would be a long-term part of their engineering footprint. The intent was a wholly-owned Indian subsidiary — not a vendor relationship — but the runway to get there directly was eighteen months of entity work, payroll setup, compliance learning, hiring channels and office space before a single line of code shipped.

Challenge

Neither of the two off-the-shelf models fit:

  • Pure staff augmentation would have kept them dependent on a vendor indefinitely, with no transfer path.
  • Project outsourcing would have ceded engineering direction in a way they did not want.

They wanted to own engineering decisions from day one and own the entity at month eighteen.

Approach

We structured the engagement as Build-Operate-Transfer:

  • Build — we hired and onboarded engineers under our Indian entity, providing seats, equipment, and an established work environment.
  • Operate — we ran payroll, compliance, HR and facilities. The client owned roadmap, engineering culture and code review from week one.
  • Transfer — a structured handover plan was agreed at engagement start, with milestones at six, twelve and eighteen months and a defined trigger for entity transfer once headcount and processes were stable.

Every operational decision was documented as it was made, so nothing relied on tacit knowledge that could not be transferred.

Outcome

The pod was operational in week four. The client's engineering leadership has been running the team since day one without taking on entity overhead.

The transfer is planned for the third quarter of 2026, by which point the pod will move under the client's own subsidiary with continuity of staff, equipment and processes intact.

Topics covered

  • Build Operate Transfer India
  • BOT model offshore India
  • India captive setup for European company
  • offshore captive engineering team India
  • set up India subsidiary engineering team
  • BOT offshore pod for product company
  • Build Operate Transfer software development India
  • transition from offshore vendor to wholly owned subsidiary

Have a similar problem to solve?

We will tell you in the first conversation whether we are the right fit.