Why is investing in an outsourced AI hub a good idea?
AI is booming. AI is the buzzword of the last few years. AI is seen as the ultimate innovation. AI is everywhere and can be applied to many things. No wonder you and your company would want to invest in it, especially as the business landscape is highly competitive and other companies are not standing still either. So, you want to think big and build an AI hub but don’t really know how to get started or don’t want to spend money blindly creating your own team from scratch? You’ve come to the right place.
In this article, we delve into what characterises both an outsourced and in-house AI development team and cover some of the main reasons for outsourcing your AI delivery centre to an external partner.
A quick look at the AI market
With artificial intelligence being one of the biggest buzzwords of recent years, it’s no surprise that the entire market and the level of investments related to it are constantly growing. Big tech companies like Microsoft and Google invest billions in developing their AI solutions, opening new AI centres in the US, and setting up new AI hubs in Europe.
Source: Financial Times – Big Tech groups say their $100bn AI spending spree is just beginning
But tech giants are not the only examples. In big pharma, Pfizer and Johnson & Johnson make efforts to scale up their AI talent pool and in-house teams. While companies such as AstraZeneca and Merck are opting for AI outsourcing and investing in external partnerships. AstraZeneca is spending $247 million on collaboration with a Canadian-based AI development company, and Merck is potentially spending even more for projects made in partnership with two UK companies specialising in AI drug discovery.
In between in-house and outsourced AI centre
Given the significant investments and rapid growth of this technology, it seems inevitable that businesses will need to capitalise on AI to remain competitive. We are constantly hearing about data science approaches and AI technologies such as machine learning (ML), natural language processing (NLP), computer vision, and generative AI (Gen AI) transforming more and more industries. Many businesses are increasingly adopting AI to automate processes, enhance decision-making, improve customer experiences, and gain competitive advantages.
You might think: if only it were that simple. Of course, the main thing you need to do first is to decide whether you want to build an internal AI team or outsource your AI hub to an external technology partner, and which option will be best for your ideas, projects, and organisation.
In-house artificial intelligence team
Investing in creating an internal AI team can help you implement new ideas and technologies into your projects and operations on an ongoing basis, as well as maintain strategic AI competencies within the organisation. Having an in-house team empowers quick adaptation to ever-changing organisational needs and allows you to maintain direct control over best practices in the project. This strategy also enables better communication between AI specialists and other departments within the company, contributing to more efficient workflows and improved outcomes.
However, building an in-house AI team from scratch can be time-consuming, expensive, and usually requires allocating additional resources to the whole process. In terms of attracting talent to the internal team, highly skilled AI professionals – such as data scientists, machine learning engineers and AI researchers – are in high demand and often difficult to recruit, especially for companies without an established AI presence.
Assembling a balanced team in the fast-growing fields of AI and data science involves investing in and finding various experts with specialised knowledge in distinct subfields and disciplines. No AI specialist covers everything – professionals with other skills will be responsible for creating models related to computer vision or text processing, and others for analysing tabular or audio data. The same goes for having experience in using various techniques, approaches, tools, or platforms available on the market for developing diverse AI solutions. All this makes building a comprehensive team on your own even more difficult.
Moreover, with the rapid development of all AI areas, it is essential to create an environment that supports continuous learning and prioritises investment in innovation, research and appropriate tools to support talent development. On the one hand, it will help to develop the team’s internal capabilities, but at the same time, it will contribute to generating additional costs. Another important thing is to make decisions related to selecting a well-suited infrastructure and choosing appropriate tools, languages or technological solutions. Without the proper knowledge or experienced specialists already on board, this also can pose a challenge.
Outsourced AI development hub
On the flip side, there is an outsourcing option that can help you build or scale an AI hub without much fuss on your side. Outsourcing in a proper model has the advantage of accessing and leveraging vast external resources and knowledge, while also enhancing internal competencies and building more AI capabilities within your organisation.
Nevertheless, the popularity of AI in recent times has created a new wave of companies offering services and consulting in this field to pop up on the market, making it difficult to find and choose a suitable and experienced outsourcing partner. With so many options and models for pursuing your AI ideas, you may still wonder what will best fit your organisation and whether an external investment will even suit your business goals and strategies. So, is outsourcing an AI hub a good idea?
Leverage an outsourced AI delivery centre
The success of any AI development project depends on several factors. The main ones relate to having an experienced team specialising in this technology, delivering solutions in a timely manner, and ensuring alignment with the goals and requirements of your company’s business strategy. Outsourcing the project to a qualified external partner, working in a relevant collaboration model, and forming an AI software delivery centre together can ensure all of that.
The basic premise of outsourcing entails teaming up with external experts, so you should pay special attention to choosing a partner and a group of professionals who already have experience in AI delivery and projects similar to yours. Investing in collaboration with a well-established partner allows you to ensure almost immediate access to trained and knowledgeable professionals who can also support you in upskilling activities for your existing employees, as well as provides a range of other benefits.
Companies offering outsourcing services have access to talents already accumulated in their organisation and take responsibility for the entire time-consuming process of finding and recruiting the best employees. Moreover, thanks to the fact that they often operate in different countries, they have access to a much larger AI talent pool. For example, by outsourcing an AI delivery centre to a company like Spyrosoft, you open yourself up to AI experts from both Poland and a whole range of countries where the firm has its presence.
Furthermore, it is up to the outsourcing partner to take care of the onboarding process, finalising all administrative and organisational formalities and setting up the team for your project. With all that in mind, it is clear that an outsourcing partner can take a large part of the activities and responsibilities off your company’s shoulders.
By taking care of such key issues, an AI outsourcing partnership can also lower the cost of maintaining the team and, thus, the entire project without sacrificing quality. Besides that, creating a skilled AI hub, rich in domain expertise, with a seasoned partner is likely to shorten your time-to-market, thereby frequently boosting your competitive edge.
Methods and models of collaboration in AI outsourcing
Nevertheless, it’s important to remember that traditional outsourcing models may also have flaws and limitations. For example, some of them are not suitable if you want to keep all the resources and intellectual property in your organisation after the collaboration ends. Given that the creation and development of AI solutions is a strategic asset for many companies, this can be a problem.
Therefore, when choosing an outsourcing partner, it is crucial to pay attention to whether they have a flexible mindset regarding engagement models and what kind of collaborative approach they offer. Some forms of outsourcing partnerships focus on delivering task-specific results within a given time and budget. Others offer on-demand access to AI capabilities without the need to build internal resources in this field. All of them have their respective pros and cons, so it’s crucial to select them carefully to meet the individual needs of the client or project.
Combining both approaches with BOT
The Build-Operate-Transfer engagement model offered by Spyrosoft combines the advantages of outsourcing and an in-house team. With this approach, the client gains the opportunity to quickly scale and acquire external resources while developing internal expertise and making AI a strategic source of competitive advantage.
This model allows you to effortlessly build a team of external experts and facilitates their introduction to your company’s structure, ensuring a quick and smooth start to project activities. Then, once the team is fully operational, the model enables the seamless transfer of experts to your organisation, ultimately enhancing your company’s in-house AI capabilities.
To sum up
With more and more investments in artificial intelligence and ever-growing competition, building your own AI resources and capabilities seems imperative. There are several options for doing this so that it fits your business goals, ideas, and strategies.
Setting up an AI centre as part of a strategic outsourcing partnership will help you harness the full potential of artificial intelligence, drive innovation and scale your business. By embracing the relevant collaborative approach, you can gain easy access to an experienced AI team without the burden of recruiting and managing it. What’s more, if needed, you can transfer the entire team into your organisation, combining the best features of outsourcing with building an in-house AI delivery hub.
Spyrosoft can support you in scaling your AI capabilities and building a fully competent AI centre in a collaborative model that meets all your needs and objectives. If you’re ready to think big and want to leverage AI with our experts, contact us via the form below.
About the author
Magdalena Jedrzejowska
Business Researcher
