In-house Vs Outsourcing Data Annotation Services

Pranjal Ostwal
5 min readJun 26, 2021

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Data Annotation is the process of reviewing raw data samples and adding meaningful and informative labels to them. Data, in this context, can be any type of data, such as images, videos, audio, and text. A data label, or tag, therefore, is simply an identifying element that explains what a piece of data is. It’s the first step in developing a machine learning model or AI. Labeling data provides context so that the model can learn from it.

As AI models require a large quantity of annotated information prior to going live, many companies looking to develop their machine learning algorithms will have a choice to make very early on. That is: whether to create an in-house team, utilize crowdsourcing, or work with an established outsourcing partner.

In-house Data Annotation

Some think that setting up a data labeling team in-house can offer advantages such as direct oversight, more security, and better protection for their IP. However, the process of creating the training data necessary to build AI models is often prohibitively expensive, complicated, and time-consuming. Not many companies can redirect the necessary time and resources needed to hire, train, and manage a professional team of data labelers. Take into account the extra office space needed and the requirement to develop the right software and tools, and costs can swiftly spiral. Furthermore, data-labeling work is often done on a project-to-project basis, so there will be a high rate of staff turnover to contend with. This means a fresh round of hiring and training for each project.

With so much riding on the quality of data annotation, it’s risky to make it a part of your engineers’ workloads. Labeling large volumes of data could monopolize their time or, worse, not get the attention this pivotal task deserves. Even dedicated, in-house data annotation resources may not be able to label large volumes of data in time to meet a project deadline or have the agility to manage requests to add different types of data or labeling to an ML training data set.

Outsourcing Data Annotation

For a ‘best of both worlds’ approach, many businesses choose to work with an external, specialized, data-annotation service. Working with an established and reputable partner can help companies save money without sacrificing quality. In any particular data labeling company, these specialists employ trained, professional annotators who are able to quickly adapt to any demand and are familiar with the most up-to-date and sophisticated annotation tools.

Outsourcing allows you to form long-term relationships with your partner which can be particularly useful if you know you’ll be coming back with new batches of data over time. If you’re anticipating a seasonal surge and require to scale up the workforce, your third-party partner can simply reassign some of their staff to your account. This avoids the need for conducting a laborious hiring and training process, only to lay people off once the demand drops.

A third-party data annotation provider also has the advantage of a singular focus. The team isn’t pulled in multiple directions to try to get a product to market or design a specific system by a client’s deadline. A data annotation provider’s project managers ensure that data annotation is accomplished accurately, securely, and on time.

Advantages of Outsourcing Data Annotation Project

The data annotation process is not only filed by AI, but it also provides benefits to other stakeholders. Well, here we will tell you why outsourced annotations are more likely for AI and ML companies.

Get High-Quality Training Data

Quality and accuracy are most important in developing AI and ML models. Its quality and accuracy come with experience, and it is also dedicated to playing this type of task with professionals. If you outsource data annotation with business experts, you can give your requirements to professionals. They do your work with high skill and better quality as well as high speed. They connect the team and combine all aspects while ensuring that the standard level annotations are at the best level while generating a high level of data.

TagX comes with high quality and accuracy with data annotation services for machine learning and AI. To accomplish this, a well-trained team undergoes several quality checks for zero error. Outsourcing of data annotation assists in achieving standards in every project while maintaining value and productivity.

Faster Deliverability

If you are trying to accumulate data from internal sources, your project will likely offer the delivery faster than the in-house staff that has already completed or turned on annotations of multiple images.

Outsourcing data annotation will help you to get higher-quality data sets at an accelerated pace. TagX works with quick annotation services to label images for machine learning and better-quality results. It assists in making real-time decisions and gets the most information out of data.

Highly scalable

A heavily labeled dataset is required to train the machines to ensure that the model gets a feed of most of the range learned from the data and provides accurate results. And if the project relies on intensive learning, you want large-scale data to understand the algorithm’s complexities and train the model to accomplish relevant results.

TagX works to produce an amount of guidance for data resolution to AI and military firms with a scalable resolution. Data annotation outsourcing is best for professionals who will additionally need an annotated data set. It is the best way to meet your uncertain demand in any language.

The Safety and Confidentiality of Data

The safety and security of data are of the utmost priority for companies. Some companies are reluctant to outsource their data annotation project for this single reason only. Companies have their apprehensions on privacy compliance like PHI or PII and other similar considerations.

Professional outsourcing companies operate with widely accepted guidelines on ethics and integrity. Owing to their high standards and proven track record, outsourcing companies like TagX have also been certified by statutory bodies.

TagX Data Annotation Services

Since data annotation is very important for the overall success of your AI projects, you should carefully choose your service provider. TagX offers data annotation services for machine learning. Having a diverse pool of accredited professionals, access to the most advanced tools, cutting-edge technologies, and proven operational techniques, we constantly strive to improve the quality of our client’s AI algorithm predictions. We have experts in the field who understand data and its allied concerns like no other. We could be your ideal partners as we bring to the table competencies like commitment, confidentiality, flexibility, and ownership to each project or collaboration.

Originally published at https://www.tagxdata.com.

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Pranjal Ostwal
Pranjal Ostwal

Written by Pranjal Ostwal

Serial Entrepreneur, AI & ML Enthusiast. CEO at TagX.

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