Guide To Offshore Data Annotation Services

Guide To Offshore Data Annotation ServicesWith an exponential growth in artificial intelligence (AI), machine learning (ML), internet of things (IoT), and process automation, a huge demand for data annotation services, especially remote data annotation specialist teams, has emerged significantly in the marketplace worldwide. According to the Allied Market Research projections, the global market size of data annotation tool is expected to cross $13.69 billion by 2030 from just $1.35 billion in 2020 with a whopping growth of over 26.3% CAGR during the forecast period. The total market volume of data labeling services is expected to reach $38.11 billion by 2028 with a gigantic CAGR growth of over 23.5% during 2021 and 2028, according to the Grand View Research forecast.

What Is Data Annotation?

Data annotation is a process of identifying, classifying, and tagging data in different forms to build a training dataset for supervised machine learning purposes in numerous ML systems. The data annotation deals with a range of data types such as text, video, image, printed text, and others that can be fed into the machines for learning aims through a range of data annotation tools and techniques. There are numerous types of data annotation services such as text annotation, video annotation, image annotation and others.

Importance of Data Labeling and Annotation?

Data annotation is a very important component of the data labeling field used in AI and ML projects. With the help of data annotation, you can structure and label unstructured data to make it understandable for computers or AI systems. In other words, without data annotation, there is no imagination of AI/ML technology in the modern world. A few major reasons that make data annotation so important in modern era of artificial intelligence include:

  • Technological growth – At the core of AI/ML technological growth sits data annotation process, which consists of numerous factors such as audio annotation, video annotation, image annotation, and others
  • Accuracy of AI – The accuracy in the machine-based responses is fully dependent on the quality and depth of the data annotation process to make the machines learn deeper.
  • Emergence of new arena – Without the power of data labeling and annotation services, you cannot imagine the arrival of new and potential technological landscapes such as driverless vehicles, unmanned aerial vehicles, and many other automated services in a range of industries.
  • Efficiency enhancement – With the help of professional-grade data annotation, you can make your websites, robots, software tools, websites, gadgets, home/office appliances, and many other systems so efficient as never-before.
  • Greater user experience – The incorporation of high-quality data annotation takes the user experience to new heights in all domains of industries.

Top Benefits of Offshore Data Annotation Services

According to Statista information, the global revenue of IT outsourcing is expected to cross $587.6 billion by 2027 from $396.3 billion in 2022 with a massive growth of over 8.20% CAGR during the forecast period. There are numerous benefits offered by the outsourced IT services, especially software development and offshore data annotation services such as:

  • Cost-efficiency – One of the most important advantages of hiring an offshore data annotation company is reduction in data labeling cost. An attractive offshore or nearshore destination like Ukraine can save you substantial cost while maintaining the US-like quality of services.
  • Time-saving – Data annotation is a repetitive type of task that requires a lot of time. If you want to dedicate your valuable time to other core processes, offshoring data annotation services is the best way to save you substantial time.
  • Higher quality – Offshoring your data annotation services provides you with higher quality due to domain-specific expertise, target-oriented tasks, congenial work-environment, and many other factors. The overall ratio of quality vs cost is much higher in offshore services.
  • Professional approach – Dedicated teams for offshore data annotation are highly trained in the domain-specific tasks and activities. They offer a great level of professionalism, precision, accuracy, and effective approach for better productivity.
  • Fully-managed services – Offshore services offered by specialized companies are fully managed with full control on technical tasking. You are free from petty issues related to administration, human resources, and other activities.
  • Faster scalability – You can scale up or down your existing offshore team as your needs change. It is much faster than in-house team expansion. There are many options for scaling up your team with expert offshore companies to choose from.
  • Timely delivery – Your offshore team works dedicatedly on your projects to complete them within the stipulated time frame. Thus, you don’t need to worry about deadlines in most cases.

An Ultimate Guide to Outsource Data Annotation Services

Offshoring your data annotation services is a complex process that requires domain-expertise and experience. You can hire a specialized offshore data annotation service provider company for your help or you can follow this step-by-step guide:

  • Requirement assessment – This is the most fundamental step of offshoring your services. You need to analyze the load of work, type of annotation processes, timeline of your project, future growth, company budget, and many other things related to your own business/company.
  • Choose location – Decide for the most ideal location in terms of time-zone, talent pool, country economy, culture, language, and many other factors.
  • Research for the right partners – This is another most crucial step in which you have to select a partner that is not only expert in this domain but also possesses many other qualities such as prior experience, team strength, project success, customer feedback, prices, infrastructure, and many other things.
  • Detailed contracting – Once you decided about one of the best offshore partners for data annotation services, you should consider developing a detailed contract of service that should cover all aspects such as pricing matrix, service interface, future scalability, penalties & compensations, responsibility matrix, escalation matrix, service level agreements SLAs, and many others.
  • Data security & confidentiality – A separate and detailed agreement on mechanism of data security and confidentiality should be finalized and get signed with the partners. This agreement should include non-disclosure agreements, data sharing and commercial non-use agreements, and many others.
  • Pricing and payments – Last but not the least, you need to finalize the mode of payments, any recurring charges, fixed fees, variable costs, maintenance and operational charges and many other things to make your data annotation offshoring experience satisfactory and productive.

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