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Outsourcing Software Development: It's Changed With AI

Mar 01, 2024 - forbes.com
The article discusses the evolving expectations in outsourcing, particularly in the context of AI and data science. It highlights the need for staff augmentation companies to not only provide AI-trained personnel but also to bring their own AI toolkits and components to cater to their customers' specific needs. The author emphasizes that outsourcing partners should have libraries, algorithms, code repositories, and pre-built solutions that can deliver richer results for their clients.

Looking ahead to 2024, the author suggests that companies should push their outsourcing partners to bring more to the table. They should ensure these partners can deliver more customized results using AI toolkits, libraries, dashboards, and components that provide data and insights in personalized ways. The author concludes by advising companies to scrutinize the AI technology their partners have built for their people to gain efficiencies, which can then be passed on to the client.

Key takeaways:

  • Staff augmentation companies must evolve to bring custom-built AI toolkits and components for their customers' specific needs, to improve speed, quality, and cost of software and AI development.
  • The leading barrier to AI adoption inside a company is talent, with more than a third of IT executives stating they are hampered by people with limited AI skill sets.
  • Outsourcing can result in significant cost savings, increases in project quality, and reduction in time-to-project completion, but it's important to ensure outsourced teams understand the business context and strategic technical goals.
  • Companies should expect their outsourcing partners to bring their own AI-powered tools that enable their developers to work better and faster, and should look for partners that have industry-specific AI forecasting models and toolkits.
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