Many US tech companies face a common dilemma: they want the benefits of a dedicated remote team (cost efficiency, time zone alignment, talent quality), but they’re not ready to set up a legal entity in Colombia or Mexico, hire locally, and manage all the administrative, HR, and compliance complexity that comes with it.
Enter the Build-Operate-Transfer (BOT) model.
BOT is a structured partnership model in which a nearshore partner (like Cafeto Software) builds the team, operates it on your behalf, and when you’re ready transfers full ownership to you. You get the benefits of a dedicated team from day one, without the upfront infrastructure investment, and with a clear path to ownership if you want it.
Companies like Apptega and Optimizely have used this model to scale their Colombia presence efficiently and on their own terms.
Phase 1: Build your team without the setup cost
In the BUILD phase, Cafeto handles everything required to establish your team in Colombia or Mexico:
- Talent sourcing and vetting: We identify engineers that match your technical requirements, culture, and seniority level
- Legal employment: Engineers are employed through Cafeto’s local legal entity, no need for you to establish one
- Onboarding: Engineers receive Cafeto-issued hardware, complete security training, and are integrated into your team’s tools and processes
- HR management: Cafeto handles payroll, benefits, contracts, and compliance with local labor law
You get a fully operational team in weeks, not months and without the $50,000+ cost of establishing a foreign subsidiary.
Phase 2: Operate, we run the back office, you run the work
In the OPERATE phase, the team is functioning. Engineers are embedded in your product cycles, your Agile ceremonies, your code review processes. They feel like your team because they are your team.
Meanwhile, Cafeto continues to handle:
People operations
- Monthly payroll processing for all engineers
- Performance monitoring and quarterly reviews
- HR support for team members (benefits, PTO management, labor dispute resolution)
- Retention programs with proactive engagement to keep attrition low (our 7% rate vs. industry’s 20-30%)
Administrative
- All local tax filings and compliance
- Equipment management and replacement
- Security monitoring and incident response
Team health
- Regular check-ins with the team’s HR liaison
- Cultural integration programs (team events, development opportunities)
- Escalation path for any interpersonal or performance issues
You focus entirely on the product. We focus entirely on keeping the team healthy.
Phase 3: Transfer, own the team on your terms
Some companies are happy to operate indefinitely under the Cafeto umbrella. Others like usually when the team reaches a certain size or strategic importance want to establish their own legal entity in Colombia or Mexico and bring the team fully in-house.
Cafeto supports both paths.
If you choose to TRANSFER:
1. We help you establish (or connect you with legal partners to establish) a local subsidiary in Colombia or Mexico
2. We transfer employment contracts to your new entity the same engineers, the same institutional knowledge, now under your direct employment
3. We transition all HR, payroll, and administrative functions to your team or a local provider
4. We document everything: processes, tools, access, and team history
The transfer can be complete or partial. Some clients transfer their senior, embedded team while continuing to use Cafeto for additional staff augmentation. The model is designed to serve your long-term interests.
Important: The TRANSFER option is not an exit it’s a milestone. Cafeto continues as an available partner for talent sourcing, augmentation, or new project needs even after transfer.
Who is BOT right for?
The BOT model works best for companies that:
- Are scaling their tech team beyond 5-10 engineers and want a dedicated, long-term presence
- Have evaluated setting up a foreign subsidiary but aren’t ready to absorb the administrative burden
- Want the option of full ownership eventually, without committing to it upfront
- Are building in Colombia or Mexico for the first time and want an experienced partner to guide the process
BOT is NOT the right fit for:
- Companies that need a single engineer for a short-term project (staff augmentation is better)
- Companies that want to remain fully asset-light indefinitely (they can still use Cafeto, just not BOT specifically)
The Cafeto BOT advantage
What makes Cafeto’s BOT model different from generic EOR (Employer of Record) services?
- We don’t just hire on your behalf we build teams with cultural alignment
- We maintain one of the lowest attrition rates in the industry: 7%
- We have 12 years of operational history in Colombia and Mexico
- We offer a genuine TRANSFER path not just a handoff to a stranger, but a structured transition with continuity
Conclusion
The Build-Operate-Transfer model isn’t just a contract structure. It’s a growth strategy. It lets companies access the benefits of a dedicated nearshore team immediately, operate without the administrative burden, and retain the option to own the entity when the time is right.
If you’re serious about building a durable tech capability in Latin America whether in Colombia, Mexico, or both BOT is worth the conversation.
Let’s explore what phase you’re at and what makes sense from there.
Book a Consultation to learn about engineering operations to Colombia:
https://outlook.office.com/book/[email protected]/?ismsaljsauthenabled
Learn about: The Changing Economics of the H-1B Visa here
