Outsourcing Software Development: Should You Go for Traditional or AI-Assisted?

With the advent of AI platforms in recent months which support the development of software applications, there has been a question which has been plaguing the IT heads of companies – whether to continue working with outsourcing development requirements to traditional software developers or to explore AI-assisted platforms/teams which support their outsourced requirement. The obvious answer might be to understand the requirements before being able to take a call on the kind of outsourcing partner required, but let’s dig a bit deeper to compare the traditional outsourcing software requirement with AI-assisted.  

Comparing Outsourcing Traditional Software Development with AI-Assisted Software Development

When comparing outsourcing traditional software development with outsourcing AI-assisted software development, there are some notable differences to consider, listed below:  

• Skillset and expertise: Traditional software development outsourcing typically involves outsourcing to software development companies (or freelancer developers) with expertise in specific programming languages, frameworks, and software engineering principles. On the other hand, outsourcing AI-assisted software development requires finding partners with AI expertise, including knowledge of machine learning, data science, and AI platforms who have demonstrated the benefits of building applications using AI-assisted techniques.  
• Complexity of projects: AI-assisted software development projects tend to be more complex compared to traditional software development projects. AI projects might involve developing and integrating machine learning models, data processing pipelines, and AI-specific algorithms. This complexity requires outsourcing to providers with advanced AI skills and experience.
• Data requirements: Typically, AI-assisted software development relies heavily on data availability and quality. Outsourcing AI development may require sharing data with the outsourcing partner, which raises concerns about data security, privacy, and compliance. Traditional software development projects may not have the same level of data-sharing requirements.
• Problem domain understanding: AI-assisted software development often requires a deep understanding of the problem domain and the specific AI applications relevant to that domain. It's crucial to ensure that the outsourcing partner has a solid understanding of the domain and can effectively translate business requirements into AI solutions. This might not be the typical case in outsourcing development to traditional software partners. You can provide them with the requirements and monitor the progress as they work closely with your team to deliver the application to your initially outlined requirements.  
• Collaboration and communication: Effective collaboration and communication are important in both traditional and AI-assisted software development outsourcing. However, due to the added complexity of AI projects, clear communication and close collaboration become even more critical to ensure that the team using AI models and algorithms aligns fully well with the desired business outcomes that you have in mind.  
• Ethical considerations: AI-assisted software development may involve ethical considerations related to data privacy, bias, and fairness. When outsourcing AI projects, it is important to ensure that the outsourcing partner adheres to ethical guidelines and best practices in AI development to mitigate potential risks and ensure responsible AI usage.
• Availability of AI expertise: While growing significantly, the availability of AI expertise can be limited compared to traditional software development skills. Finding outsourcing partners with the required AI skills and experience may be challenging, especially as AI is a rapidly evolving field with specialized knowledge requirements.

The Benefits of AI-Assisted Software Development

Outsourcing AI-assisted software development offers several benefits compared to traditional software development approaches. Here are some specific advantages of outsourcing AI-assisted software development:

• Accelerated development timeline: Developing AI models and algorithms can be time-consuming and complex. Outsourcing AI-assisted software development allows businesses to leverage the experience and efficiency of external AI development teams. These teams are equipped with the necessary tools, frameworks, and expertise to expedite the development process, resulting in faster time to market for AI-driven software solutions.
• Access to specialized AI expertise: AI development requires specific skills and expertise in machine learning, data analysis, and AI frameworks. By outsourcing AI development, businesses can tap into a global talent pool of AI specialists who have experience and knowledge in developing AI models and algorithms. This access to specialized AI expertise can enhance the quality and capabilities of the developed software.
• Cost-effectiveness: Outsourcing AI development can be a cost-effective solution, especially for businesses that don't have the resources or budget to build an in-house team that can invest in building tools and platforms to build software. Developing and maintaining an in-house AI team requires significant investment in recruitment, training, infrastructure, and ongoing research. Outsourcing eliminates these costs, as they are handled by an external vendor.
• Reduced implementation risks: Implementing AI technologies carries inherent risks, including accuracy, bias, and privacy concerns. By outsourcing AI development, businesses can mitigate these risks by leveraging the expertise of specialized AI teams. These teams are familiar with best practices, ethical considerations, and regulatory requirements, reducing the likelihood of errors and ensuring responsible AI implementation.
• Flexibility and scalability: Outsourcing AI-assisted software development provides businesses with the flexibility to scale their AI initiatives based on project requirements and business needs. The external vendor can allocate additional resources or adjust the team size to accommodate changing project demands. This scalability allows businesses to efficiently adapt to evolving market conditions and effectively manage their AI development projects.
• Focus on core competencies: Outsourcing AI development allows businesses to focus on their core competencies and strategic objectives while leveraging external expertise for AI-related tasks. Instead of investing time and resources in acquiring AI skills and knowledge, businesses can concentrate on their primary business functions, such as marketing, sales, or customer service. This focus improves overall efficiency and effectiveness.
• Collaboration and knowledge transfer: Outsourcing AI-assisted software development provides an opportunity for collaboration and knowledge transfer between the external vendor and the internal teams. Working closely with AI experts exposes the internal teams to new ideas, techniques, and approaches in AI development. This collaboration can enhance the overall capabilities of the internal team and foster a culture of innovation within the organization.

It's important to note that the benefits of outsourcing AI-assisted software development may vary depending on the specific project requirements, the capabilities of the outsourcing vendor, and the level of collaboration and communication established between the vendor and the business. Careful evaluation of outsourcing partners and effective project management is crucial to realizing the full potential of outsourcing AI development.

Xamun – AI-Assisted Software Development Done Right

As enticing outsourcing to a vendor with AI-assisted software development capabilities are, it requires careful consideration of the vendor's capabilities - AI expertise, data requirements, problem domain understanding, and ethical considerations. Not to mention, it entails finding outsourcing partners with specific AI skills and experience, ensuring effective collaboration, and addressing the unique challenges associated with AI development projects.  

Xamun has been catering to the evolving needs of clients associated with traditional software outsourcing. The intent of developing the Xamun platform sprung from providing clients with the necessary benefits of advancements in technology without necessarily undertaking any of the challenges associated with traditional software outsourcing – unacceptable timelines, price tags, or headaches.  

Offering a fixed-term contract, with AI-assisted software development, AI and bots dramatically reduces the time needed to build and test ensuring a 20x faster delivery of applications. Book a meeting with us to better understand how AI-assisted outsourced software development and we'd gladly help you digitally transform at a fraction of the cost and time.