What Makes Offshoring for AI Development in the US Popular?

The number of companies in the US that offer AI development outsourcing services has been growing. Because of the long-standing and well-known pattern of outsourcing IT projects to other countries. For almost forty years, US corporations have hired IT agencies in other nations to handle business operations, software services, and IT infrastructure solutions that rely on IT.

The research giant Statista quotes that the IT services global spending has reached US $1305 billion, with the managed services market size touching just close to US $280 billion. Another report says that in global comparison, most of the revenues, as the trend continues, will be generated in the US which is just under US $200 billion in 2024.

So, what is changing in the US IT offshore market? Cost-effectiveness is still a big deal, but security, data privacy, and cultural fit are also becoming more significant. Asian countries are at the top of the list, but Australia and the Middle East are also important places for the US to outsource AI development. Companies in the US also like to outsource their AI development for the same reasons. They hire teams from well-known offshore AI development organizations that have worked on AI and ML solutions before.

This short tutorial will explain why it is a good idea to hire an AI development business from outside of the US.

Benefits of Hiring AI Dev Team Offshore

Building an AI solution in-house in the US costs a lot of money for people and infrastructure. Companies in the US think about hiring an offshore AI development company and experience all the benefits of outsourcing.

Here are some of the main reasons why outsourcing AI development to other countries is a good idea.

Cost-Effectiveness

The best thing about hiring offshore companies to do AI development is that it saves money. The US businesses can get the greatest deal at the lowest prices. The overall costs of developing AI are much lower because of competitive rates, lower living costs, and variances in currencies. However, you still receive the best resources to work on AI projects. These reductions in costs let you put more money into other important parts of your organization.

Global Talent

When you engage an AI development company from another country, you may tap into a huge pool of AI developers from all around the world. You can take advantage of the benefits of having a wide range of abilities and points of view that are hard to get in your area. Also, having this kind of knowledge about local markets will cost a lot. International know-how leads to more creative and scalable AI solutions that give your projects cutting-edge features, functions, global insights, and new ideas.

Quality

American corporations used to worry about the quality of IT outsourcing. The false idea is no longer true, and offshore AI development service providers now produce projects of the highest quality. This is because a lot of offshore AI development organizations have strict tech education programs that have produced a lot of skilled AI engineers. AI development businesses that work overseas are dedicated to keeping the best possible coding standards so they can compete on the global scale. This means that when you outsource AI projects, you can be sure that the finished product will be of the highest quality.

Round-The-Clock Development

Outsourcing AI development to an overseas organization in Asian countries like India might lead to ongoing development cycles. Because of the time difference, they work while you sleep, and you plan what they should do when you wake up. This speeds up the entire timetable and makes people more productive. As a result, 24/7 development will help you get to market faster and provide you an edge over your competitors, which is very important in today’s fast-paced business world.

Easy Management

Most offshore AI development hubs use the newest communication tools or platforms that are built into project management software. This just means that you can get a report on time and learn about your project whenever you want. You can stay connected and in charge with regular updates, real-time collaboration tools, video meetings, and other modern tools. Your AI offshore development will be worth it if you have clear protocols and improved ways to talk to each other.

Top Offshore AI Development Destinations

India, the UK, Canada, the UAE, and Australia are some of the best places to develop AI offshore. These countries have made huge strides in their own growth by learning how to make AI at low costs. Most US corporations choose to outsource their AI projects to these nations because they have strong tech infrastructure and AI development companies that are both very efficient and friendly.

India

India has been a top place to outsource IT work and now AI work as well. Statista says that the IT outsourcing business will probably make $11.04 billion in 2024. The CAGR will be 13.52% from 2024 to 2029, which will add to the market volume of US $20.81 billion by 2029. The Indian education system and the demand for the IT industry in the country are both very important. The top AI development companies in India offer custom AI solutions, so you can always count on them for low-cost alternatives and high-quality development.

The United Kingdom

The UK is also close to becoming a place where AI projects can be developed outside of the country. According to Statista, the IT outsourcing market will bring in just under US $40 billion in 2024 and is predicted to reach US $63.04 billion by 2029, with an annual growth rate (CAGR) of 9.53% over that time. The UK has a lot of smart people who are really interested in research and new ideas. With highly reputed universities and a thriving tech ecosystem in the country, you can find the best offshore AI companies in the UK that deliver optimum results in AI-based products.

Canada

Canada wins the contest for popular offshore AI development in the US because nearshoring IT solutions has so many benefits. Canada’s IT outsourcing industry will grow at an impressive CAGR of 9.53% between 2024 and 2029, reaching US $63 billion by 2024. Because Canada and the US share a lot of cultural ties, the country has a bright future in AI development. The Canadian government has done a lot to create a strong startup culture, which is why the AI engineers here are at the cutting edge of the technology world. If you’re thinking about nearshoring AI projects, you may find the best AI development agencies in Canada that offer a good mix of high-quality talent and inexpensive prices.

The United Arab Emirates

The UAE is one of the fastest-growing countries and is becoming a digital powerhouse with the potential to become an offshore hub for AI development. You can find some of the top AI companies in the UAE that specialize in digital transformation. Their in-house AI development teams have a strategic vision and are always looking for new ways to improve.

Look for the best AI development businesses in the UAE that have cutting-edge technology, low prices, and new ideas. The area is concentrating on cutting-edge technologies and is going through the biggest change in outsourcing IT solutions. According to research, the UAE’s IT outsourcing market will grow from US $1.39 billion in 2024 to US $4.79 billion in 2029, with a CAGR of 6.23% over that time.

Australia

According to real reports, the IT outsourcing industry in Australia will make US $14.01 billion in 2024. With a CAGR of 8.70%, it will reach an amazing US $21.26 billion in 2029. This is because the country has a high degree of tech education and is getting more skilled AI developers from other countries as immigrants. The country is very interested in AI and ML research and development. You can find the best AI companies in Australia that offer high-quality software development services for AI projects that are done overseas. Also, because of the time zone, most US corporations choose Australia as their offshore AI development base.

Offshore Vs Nearshore AI Development

The best place to create your AI project relies on what you need it to do. Offshore AI development has great cost benefits and lets you hire people from all over the world, but there may be a communication and cultural divide at first. Some businesses may also only be open during certain hours, which makes time zone issues much worse.

Nearshoring AI development, on the other hand, works effectively because it fits with the culture. For example, US corporations might nearshore AI development to Canada because they have a similar culture, but they would have to pay more because it will be far more expensive than offshore AI development to India.

You need to choose between nearshore and offshore AI development based on your project’s needs, money, time zone, how hard it is to use the AI tool, and other factors.

Ready to Build An AI Solution? Here Is the Best Option

Whether you hire an offshore AI development firm or a nearshore AI agency, you’ll save money and obtain good products in the end. You can still discover some of the top AI development companies in the US that will make custom solutions for you, but you might have to talk about your ideas and bargain a little bit on the project over time.

Derek Cohen   |  Jun 11, 2025

Analyzing business activities and data to formulate the best business development ideas is where I earn appreciations and remunerations. I’m an ardent reader, business adviser, gadget aficionado and an amateur yet an avid writer. My urge for innovative writing evokes every time I come across new gadgets, neo technology and novel technical events.