Are small and medium-sized businesses considering integrating Artificial Intelligence (AI) in their regular processes? Given that almost every device we use daily uses AI in some form, probably. 

Automation, enhanced decision-making, and personalized customer experiences are some of the gifts that AI keeps on giving. But for small and medium-sized enterprises (SMEs), AI can seem like a distant dream. Building an in-house AI team is often cost-prohibitive and time-consuming for SMEs, and many consider offshoring as a practical solution. 

Choosing the right AI offshoring partner, however, comes with its own set of challenges.

This guide will explain how CEOs of small and medium-sized companies can evaluate and choose the right AI offshoring partner to meet their unique business needs.

1. Identify Your AI Offshoring Needs and Business Goals

Before beginning your search for an AI offshoring partner, define what your business aims to achieve with AI. Are you looking to develop machine learning algorithms for customer behavior analysis? Do you need AI-driven automation for back-office operations? If you recognize your needs, you will be better equipped to identify an offshoring partner with the right expertise.

CEOs should prioritize offshoring partners with experience in the areas of AI relevant to their business. For example, if you aim to implement AI for customer support chatbots, find a partner with a proven track record in natural language processing (NLP).

2. Assess Technical Expertise

AI development is a specialized field that requires knowledge of data science, machine learning, natural language processing, and neural networks. When choosing an offshoring partner, CEOs should evaluate the technical expertise of the prospective partner’s team. Look for a partner with experience in developing similar AI models and algorithms.

Key considerations:

  1. What AI frameworks and tools do they use (e.g., TensorFlow, PyTorch)?
  2. Can they offer examples of past AI projects, particularly within your industry?
  3. What level of technical support do they offer post-deployment?


AI offshoring involves handling complex algorithms, and you’ll want a team that understands the technology and how it can be integrated into your existing business processes.

3. Evaluate Data Security Protocols

AI projects often involve access to large amounts of sensitive data, and data security is one of the top concerns for CEOs when considering offshoring. Different countries have varying standards for data protection, and working with offshore partners can expose your company to vulnerabilities if proper safeguards are not in place.

Your offshoring partner must have strong data encryption policies, secure server environments, and comply with international data protection standards like the GDPR or CCPA. Ask for detailed documentation of their data handling protocols and inquire about past incidents of data breaches and how they were resolved.

Questions to ask:

  1. How is sensitive data stored and managed?
  2. What encryption methods are used to secure data?
  3. Do they adhere to international and local data protection regulations?

4. Cost Efficiency vs. Quality

Many CEOs are drawn to the prospect of getting the same caliber of AI talent at a fraction of the cost. While cost savings are essential, it’s important not to compromise on quality. Cheap services can result in poorly developed AI models, leading to costly rework and long-term inefficiencies.

To strike the right balance, request detailed pricing models from potential partners. Ask them to break down the costs for various stages of the AI project, from development and testing to deployment and post-deployment support. Check whether they offer flexible payment options that can scale with the growth of your project.

Tip: Cheaper isn’t always better. Always look for partners that offer value for money rather than just the lowest price.

5. Examine Communication Channels and Responsiveness

Working with an offshore team means dealing with time zone differences and cultural barriers, which can impede communication. CEOs must check if their AI offshoring partner has a transparent process for regular check-ins, progress updates, and issue resolution.

Choose a partner who is committed to open communication. Verify they have dedicated project managers who can arrange for smooth interactions between your internal team and the offshore developers. Also, assess how quickly they respond to queries and how easily accessible they are through multiple communication channels such as email, phone, and video conferencing.

6. Consider Scalability and Flexibility

Your AI needs will evolve, and your AI offshoring partner must be capable of scaling their services to meet increasing demands. Whether it’s adding new AI features, processing larger datasets, or supporting additional business functions, the right partner should be able to grow alongside your company.

Scalability applies to staffing. If your AI project expands, will the offshore partner be able to increase the size of the team working on your project? Flexibility is essential, so be confident about their ability to adapt to changing project requirements and deadlines without compromising quality.

Questions to ask:

  1. Can the partner handle an increase in project scope?
  2. How easily can they adjust timelines or resources as needed?

7. Evaluate Cultural Fit and Work Ethic

While technical expertise is essential, cultural alignment is equally important. The offshoring partner should share your business values, work ethic, and commitment to meeting deadlines.

Take the time to understand the work culture of the country where your offshoring partner operates. For example, do they value precision, creativity, or speed? This can affect how they approach your project and interact with your internal teams.

Tip: Schedule meetings or even short trial projects to get a feel for the offshore team’s work style and approach to problem-solving.

When outsourcing AI to an offshore partner, it’s critical to establish clear legal frameworks and contracts. This should include terms on intellectual property (IP) rights, confidentiality agreements, and clauses for breach of contract. SMEs must maintain ownership of the AI models, data, and algorithms developed through the project.

Work with a legal advisor to draft a detailed service agreement that outlines the scope of work, payment terms, timelines, and intellectual property ownership. Include provisions for resolving disputes, whether through arbitration or legal channels.

Tip: To avoid any legal loopholes, make sure the contract is legally binding in both your home country and the offshore partner’s country.

9. Post-Deployment Support and Maintenance

AI projects don’t end at deployment. Continuous monitoring, maintenance, and updates are required to ensure the AI models remain effective. CEOs should ensure that their offshoring partner offers comprehensive post-deployment support to address bugs, data inaccuracies, or the need for further development.

Evaluate the partner’s track record in providing long-term support. Ask about their experience with maintaining AI systems after deployment and how they handle version upgrades or model retraining.

Tip: A great AI offshoring partner will offer ongoing support packages tailored to your business needs.

Conclusion: Choosing the right AI offshoring partner 

CEOs of small or medium-sized companies need to prioritize partners who bring technical expertise and a strong understanding of their business needs, security requirements, and growth potential.

With InCommon, communication, scalability, data security, and legal protection are off your plate forever. We mitigate many risks associated with AI offshoring and set your business up for success. Our extensive evaluation of our talent pool and due diligence will help your AI initiatives take off quickly and flourish.

Our offshore teams become seamless extensions of your onshore departments, contributing to long-term business growth.