Let me throw a general observation/opinion into the ring in regard to allowing indigenous forces to take over:


Loyalty and other motivational problems can often be overcome by setting the right environment.

To declare training complete and sit back is obviously not the way to go.
I personally wouldn't mind the tactical and technical proficiency much either. Forget inspections, TO&E and milestones.

The time for the switch should rather be when the indigenous force has developed some kind of pride and determination.
A bit of battalion esprit de corps, for example.
A wrestling match tournament against civilians (civilians lose), horseman games probably, a battalion-typical accessory to the uniform, a few charismatic company leaders, some quick success in super-easy yet still impressive-looking early missions, timely pay, an evening education program that turns them all into literates and gives them a professional qualification goal to achieve in 2 years (instead of just a few weeks, such as deserting after 1st pay) ... once you got them motivated you can add whatever proficiency wasn't acquired so far.

The loyalty has to override whatever loyalty they had previously (except to parents and siblings) or else they'll stay a paper tiger.