Outsourcing AI. To outsource or to do it yourself?

4 min readDec 22, 2020

According to a study by McKinsey & Company, the potential growth from the use of artificial intelligence by companies is over $3 billion a year. Innovation that emerges like a mushroom after a rain shower helps companies to acquire valuable information and increase employee productivity. Today, we no longer ask whether it makes sense to implement machine learning and artificial intelligence into our business, but how to do it so that it serves the company well.

To begin with, a small lesson. Is artificial intelligence (AI for short) the same as machine schools (ML)? Well, almost. We all remember from the school the question of the rectangle and the square — the latter is the former, although on the contrary, this rule no longer works. The same is true for AI and ML. Hearing the slogan “machine learning” we can always talk about “artificial intelligence”. Not every technology that uses artificial intelligence will benefit from machine learning. Take the example of a state-of-the-art warehouse, where robots perform all the tasks — from receiving goods to sorting and dispensing. The AI used in them can be programmed to perform one or more tasks and will be perfect in that. However, its competence ends where the task is completed. This is not the case with ML, which allows devices to improve with or without human intervention. This first model is called supervised, while the second is called unattended. I hope that after this short lesson no one will surprise you with a question about the differences between artificial intelligence and machine learning. However, let’s move on to the essence and focus on the outsourcing of both described solutions.

To outsource or not to outsource? The three-stage method

The dilemma “do it yourself or outsource” can be a nuisance for many companies dealing with modern technologies (especially IT). It happens that the success of the whole project depends on the correct answer to this question. Of course, the decision to “do or buy” should not depend on the toss of a coin. It is a step that we take after a detailed analysis. Specialists often recommend a process consisting of three stages: establishing a strategy, identifying risks and economics. Let’s take a closer look at each step.

1. Set the strategy

At this stage the company reflects on the role of AI in achieving its strategic goal. The question is whether Artificial Intelligence will be used to create a breakthrough application that will change the world (or at least a specific company) forever, or whether it will help to achieve current goals with immediate benefit. When it comes to optimizing standard company processes, you don’t need to create your solution because the market has everything you need. Creating an AI that is already available would be an unforgivable waste of money and time in this case.

Using Artificial Intelligence Outsourcing, you can still create original and competitive solutions. Commercially available “ready-made” products can help you to quickly release a product for almost immediate use.

2. Identify potential risks

Time for further important questions and reflections. First, think about whether the resources you have will allow you to create your own AI. It is worth remembering that implementing machine learning technology requires a lot of practice and even more skills. Throwing yourself into deep water would be as reckless as it would be risky in this case. Secondly, specialists. Professionals working on solutions based on AI and ML are a valuable asset. It will be much better, easier and, above all, safer to find and hire such magicians using external resources. Your company crew will then be able to deal with current projects and problems. Thirdly, flexibility. As it has been emphasized many times in this blog, IT outsourcing takes away from you the need to create a permanent team for a specific task. Hiring people from the outside will allow you to avoid the risk of spending too much money to create jobs for people who will only be needed on a particular section of the project road.

3. Launching the economics

Did you think that this was the end of questions? Not necessarily. At the third and final stage, think about where you will find the company that will give you the best value for money. Once you find one, you’ll be able to set a specific, unbeatable budget. It will probably be a company with the right, usually extremely expensive devices to create AI-based technology. Outsourcing guarantees that the right people will work to create the right solutions.

So, outsourcing?

Yes, without a doubt outsourcing. In addition to purely executive issues, external specialists will help you understand how to implement artificial intelligence. This requires a great deal of expertise available to the engineering teams associated with AI. Of course, creating an IT department dedicated exclusively to developing systems based on this type of technology can be a great temptation, but from a practical and economic point of view it is more profitable to hire specialized experts.

PROGRAMMED INNOVATIONS
TO DEVELOP YOUR BUSINESS

Outsourcing AI. To outsource or to do it yourself?

Written by Da Vinci Studio Software House