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Guide to Building an Offshore Team for AI Development

An illustration of AI and ML

In today's world, Artificial Intelligence, or AI is the leading talking point among CEOs, founders, entrepreneurs, and normal people like you and me. This is because of how AI is revolutionizing businesses, day-to-day tasks, and removing the need for manual input in most of the places.

AI technologies prove to provide cutting-edge innovation in business efficiency, automation, and capabilities of functionalities like self-driving cars previously thought to be only found in science fiction.

AI also promises record growth for businesses that implement it in their regular operations which is why AI development has become crucial for entrepreneurs and managers to pursue to transform and grow businesses.

Why Opt for an Offshore Team

When looking to achieve peak efficiency and faster business growth, AI development comes to mind, and building or acquiring custom AI solutions seems to be the best and most technologically relevant route.

Building an AI product or solution in-house can turn out to be incredibly expensive and inefficient in the long term and is something viable only for large corporations due to the enormous costs of hiring developers, buying equipment, and running a project.

Opting to outsource AI development to an offshore firm is one of the most financially feasible and effective methods of software development. Building your offshore AI team through several means of outsourcing allows you to bypass unnecessary costs and achieve a competitive advantage in your field.

Pros and Cons of Using an Offshore Team for AI


Cost Efficiency
Access to Global Talent
24/7 Operations
Focus on Core Competencies
Global Market Reach


Communication Barriers
Quality Assurance
Data Security Risks
Legal and Regulatory Compliance

The Development Process with an Offshore AI Team

Discovering and Planning Your Project

Conduct market research and assessment to deliberate the feasibility of the AI project. Lay out the expectations, requirements, and functionality of the AI product you are looking to develop.

Setting up the Offshore Team and Communication

Identify a suitable location for building an offshore team. Recruit members for your team by hiring freelancers or directly contracting an offshore firm for the development. Next, establish communication channels to efficiently collaborate with your offshore team and establish roles in the team.

Developing the AI Model

This is the core of your entire AI project. Design and develop Artificial Intelligence models as per project requirements. Your offshore team will work and develop the back-end of the AI model and front-end integrations of the AI models with other software.

Read more on how you can develop your own AI programs.

Testing and Validating

This is the final step in the development before your AI product is released. The developers rigorously test the AI model to identify flaws and inconsistencies hindering the performance and functionality of the AI product which is then fixed.

Project Completion and Deployment

Once the development is finished, deploy the final product to the world through distribution channels like the Internet or the AppStore. Once deployed, the AI solution will have to constantly be monitored and have maintenance carried out on it.

Types of AI Solutions You Can Develop With an Offshore Team

  1. Natural Language Processing
  2. Chatbots and Virtual Assistants
  3. Generative AI
  4. Machine Learning
  5. Computer Vision
  6. Advanced-Data Analytics
  7. Information Extraction
  8. Text Mining and Analysis
Illustrations of different job roles in a AI development team in an offshore location

Steps to Building an Offshore Team for AI

Define project requirements

Begin by clearly defining the scope, objectives, and requirements for the AI development project. Determine the specific skills, expertise, and resources required to complete the project goals. Consider project complexity, timeline, and budget constraints when setting realistic expectations.

Identify offshore locations

Investigate and evaluate potential offshore locations using criteria such as cost-effectiveness, talent availability, cultural compatibility, and geopolitical stability. Consider countries known for their robust IT industries, skilled workforces, and favorable business environments. Examine the legal and regulatory landscape, infrastructure, and connectivity options to ensure suitability for offshore operations.

Select an offshore partner

Identify and vet potential offshore partners, such as outsourcing companies, development agencies, and freelancers, based on their AI expertise, experience, and track record. Conduct thorough due diligence, review client testimonials, and request case studies or references to determine credibility, dependability, and suitability for your project requirements.

Define roles and responsibilities

Determine the roles, responsibilities, and skill requirements for each member of the offshore team. Determine the team composition, which should include data scientists, machine learning engineers, software developers, project managers, and domain experts, based on project requirements and available resources. Create reporting structures, communication channels, and performance metrics to ensure accountability and consistency.

Develop a project management framework

Implement a strong project management framework, such as Agile or Scrum, to effectively manage the development process. Define project milestones, deliverables, and timelines, then allocate resources accordingly. Hold regular meetings, stand-ups, and progress reviews to keep track of project progress, identify risks, and address issues before they arise. Monitor performance, track tasks, and keep stakeholders informed using project management tools and dashboards.

Manage performance and quality

Implement performance management systems and quality assurance processes to track and evaluate the performance of offshore team members. Establish key performance indicators (KPIs), metrics, and benchmarks to assess productivity, efficiency, and work quality. Regular performance reviews, 360-degree feedback sessions, and skill assessments can help identify areas for improvement and provide targeted support and training as needed.

Important Roles in Your Development Team

Project Manager

The project manager is in charge of managing the entire AI development process, from planning and execution to delivery and maintenance.

They coordinate activities, allocate resources, manage timelines, and make certain that project objectives are met within budget and scope.

The project manager serves as the primary liaison between the offshore team and the client, facilitating communication, managing expectations, and resolving issues.

Data scientist

Data scientists are in charge of analyzing complex datasets, identifying patterns, and generating actionable insights to guide AI model development.

They are experts in statistics, machine learning, and data mining techniques, using tools and algorithms to preprocess data, train models, and assess performance.

Data scientists play an important role in designing, developing, and optimizing AI solutions that deliver value.

Machine Learning Engineer

Machine Learning or ML engineers work on integrating machine learning algorithms and models into production systems.

They are proficient in programming languages like Python, R, and Java, as well as frameworks like TensorFlow and PyTorch.

Machine learning engineers create, test, and deploy AI models, fine-tuning parameters, optimizing performance, and integrating them into scalable and efficient software solutions.

Software Developer

Software developers are in charge of creating, coding, and testing software applications that include AI functionality.

They are proficient in programming languages such as Python, Java, or C++, and have worked with development tools and frameworks.

Software developers work with data scientists and ML engineers to implement AI algorithms, create user interfaces, and ensure the reliability, scalability, and maintainability of AI software solutions.

Domain Expert

Domain experts have specialized knowledge and experience in a particular domain, such as healthcare, finance, or manufacturing.

They provide valuable insights into domain-specific requirements, business processes, and user needs, guiding the development of AI solutions that solve real-world problems and add tangible value.

Domain experts work with the development team to define use cases and validate industry-compliant solutions.

DevOps Engineer

DevOps engineers automate, integrate, and deliver AI software applications, streamlining the development, deployment, and operation process.

They manage infrastructure, set up deployment pipelines, and optimize workflows to shorten development cycles and increase efficiency.

DevOps engineers work with development teams to implement best practices, monitor system performance, and ensure scalability, availability, and security for AI solutions in production environments.

Ways to fill the roles

These roles might differ in priority depending on the complexity of the AI project but many strategies to outsource development can be utilized in hiring or filling the roles:

Offshore Development Centers (ODCs)

Contract dedicated offshore development centers in strategic locations known for their robust IT industries, skilled workforces, and favorable business climates.

Establish ODCs in countries like India and the Philippines, where labor costs are low and there is a large talent pool of software developers, data scientists, and AI engineers.

ODCs allow businesses to form remote teams with specialized skills and expertise, save money, and receive 24/7 support for AI development projects.

Check out our short list of the 14 best AI development companies in the world that you can look to for offshoring AI

Remote Teams

Hire remote teams of offshore developers, data scientists, and AI engineers who work from their home countries or coworking spaces.

Use communication technologies, collaboration tools, and project management platforms to ensure smooth interaction and coordination among distributed teams.

Remote teams provide flexibility, scalability, and access to global talent for AI development projects, enabling businesses to optimize resource utilization and productivity.

Staff Augmentation

Augment in-house teams with external resources, such as freelancers, contractors, or remote developers, to fill skill gaps or resource shortages within the AI development team.

Employ specialists on a contract or part-time basis to help with particular project stages or activities, like software testing, model creation, or data analysis.

Businesses can gain access to more knowledge, become more flexible, and scale resources by project requirements by using staff augmentation outsourcing.

Outsourcing Advisory Services

Seek guidance from outsourcing advisory firms or consultancy agencies specializing in AI development outsourcing to assess outsourcing options, evaluate vendor capabilities, and develop outsourcing strategies tailored to business needs.

Recruit outsourcing advisors to manage and oversee ongoing outsourcing agreements, write contracts, and carry out vendor assessments.

Businesses may minimize risks, maximize the value from outsourcing relationships, and negotiate the intricacies of outsourcing with the aid of outsourcing consultancy services.

Contact Us

Best Countries to Build Offshore Teams In

World map marking the top countries for offshore software development


India is a popular destination for offshoring software development and is also a leading location when it comes to AI development due to its established outsourcing sector, reasonable labor rates, and a big pool of highly skilled IT workers.

Numerous software development centers, research institutes, and technology companies with an emphasis on artificial intelligence and machine learning can be found in cities like Bangalore, Hyderabad, and Pune.

India is a desirable location for offshore AI development because it has a strong ecosystem of digital companies, a friendly business climate, and English ability.


Due to its skilled English-speaking population, cultural fit with Western clientele, and affordable labor, the Philippines is becoming a more popular location for offshore AI development.

Government incentives for technology investments are available in cities like Manila, Cebu, and Davao, along with a robust business process outsourcing (BPO) industry and an expanding pool of IT specialists.

The Philippines is a great place to outsource AI development services since it has a vast talent pool of data scientists, software developers, and customer care specialists.


Vietnam is becoming a popular choice for offshore AI development due to its youthful, tech-savvy workforce, affordable labor, and swift economic expansion.

Cities like technological parks, research institutes, and a thriving startup environment can be found in innovative hotspots like Ho Chi Minh City, Hanoi, and Da Nang.

Vietnam is a desirable location for outsourcing AI development projects aimed at the ASEAN market because of its advantageous location in Southeast Asia, cultural affinities with Western clientele, and government incentives for technological investments.


Brazil is gaining popularity as an offshore location for AI development due to its highly qualified IT workforce, sizable market, and expanding technology industry.

Cities with strong academic institutions, a thriving tech sector, and government backing for innovation and entrepreneurship are São Paulo, Rio de Janeiro, and Belo Horizonte.

Brazil offers prospects for collaboration in burgeoning AI markets like Latin America, as well as cultural proximity to Western clients and access to a varied talent pool of software developers, data scientists, and AI engineers.

Future outlook

AI software development has a bright future ahead of it thanks to constant improvements in technology, approaches, and applications:

Technological Advancements: As AI algorithms, frameworks, and platforms continue to advance, the creation of intelligent systems that can handle a wide range of difficult possibilities and challenges in a variety of industries and disciplines will be accelerated.

Industry Adoption: The use of AI is predicted to pick up steam across a variety of industries, boosting the need for specialized knowledge, abilities, and solutions to fully realize the transformative potential of AI in fostering innovation, boosting competitiveness, and providing value to clients.

Offshore Development: With access to worldwide talent pools, specific capabilities, and affordable solutions to meet changing market dynamics and consumer expectations, offshore teams will become more and more important in satisfying the expanding demand for AI talent.


Finally, offshore teams are a strategic imperative for firms looking to capitalize on the revolutionary power of AI software development. While offshore offers appealing benefits in terms of cost savings, access to global talent, and scalability, it also introduces communication, quality assurance, data security, and legal compliance issues.

Businesses can reduce risks, overcome obstacles, and maximize the potential of offshore teams to drive innovation, achieve business goals, and maintain a competitive edge in an increasingly digital and interconnected world by implementing proactive measures, robust processes, and strategic partnerships.