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Why is India booming as the annotation capital of the world?

  /  Latest News   /  Why is India booming as the annotation capital of the world?

Why is India booming as the annotation capital of the world?

Here are some reasons why India is booming as the annotation capital of the world

The global market for outsourcing data labeling services was valued at $1.3 billion in 2020 and is predicted to touch $13.6 billion by 2030, recording a CAGR of 28.9% from 2021 to 2030. 

Considering the time, complexity, and cost of data annotation with the development of machine learning models, many companies may not have the appropriate resources to deliver acceptable and precise results.

Therefore, most companies are taking a strategic approach to outsourcing data annotation services. This acquisition is anticipated to increase the number of outsourcing firms in India.

Everybody knows India has investment welcoming policies, and it is the best option for outsourcing for foreign investors. In fact, there are several reasons why India remains one of the top data annotation outsourcing providers. Let us put some light on some of the most popular reasons:


#1. Flexible Pricing Options

The prime reason India continues to be a top data annotation outsourcing provider is the notable cost savings that businesses can accomplish. This is mainly due to the wide gap between employees costs in India and that of other countries. For instance, India’s good data annotation service provider will provide you data annotation services as low as 0.02 USD per annotation. In contrast, in the US, the starting price charged by most of the data annotation companies starts at 1.00 USD per annotation. This pricing flexibility provided by Indian companies will give you the freedom and creativity to manage your budget and reap larger projects.


#2. High-Quality Services

As you just saw, the cost plays a vital role in outsourcing data annotation services. Furthermore, the high quality of data provided by Indian outsourcing companies has also allowed India to be one of the top data annotation outsourcing destinations. This trend was recently reflected by the NOA (National Outsourcing Association) in its Annual Offshore Outsourcing Conference. It showed that most international companies who pick India as their first preference for outsourcing data annotation services said that: 

“Cost reduction was just a bit of the reason that most businesses were considering offshore outsourcing. There were additional advantages to be produced in time-to-market and quality, driving to an adage that organizations initially preferred India to save costs but stayed for the speed and quality!”


#3. Best in Infracture And Technology

India is a modern and well-developed country that offers state-of-the-art Artificial Intelligence, Machine Learning, and robotics technology. You get the latest and best in software technology and customized solutions for data annotations services. Many companies have developed their own automated data annotation tools, which can achieve a high level of accuracy. They have uninterrupted communication channels to interact with their clients for providing high-speed results.


Indian Companies on the Rise: Top 3 Data Annotation Startups According to LinkedIn

Over the last decade, India has witnessed a very dynamic and fast-growing startup ecosystem. The country is home to nearly about 40,000 different startups with more than 5000 investors from all across the globe. Indian data annotations outsourcing startups raised a cumulative $54 million in funding during 2020, a marked increase from the $36.6 million raised in 2018.

This also suggests competition in the Indian startup ecosystem. Below, you can see a list of the 3 top Indian Data Annotation Outsourcing Startups to watch in 2021.


#1. Zuru


Year Founded: 2019

HQ: Bengaluru, Karnataka, India

Company Size: 11-50 employees

Specialties: Language Services, Data Annotation, Languages Interpretation, Artificial Intelligence, Machine learning, Data Science, and Data Labeling

About: Zuru is a data annotation startup in India. They aim to help AI-related businesses build quality training data at scale. They provide end-to-end scalable data annotation solutions with swift turn-around-time & state-of-the-art accuracy.


  • Fully managed and scalable teams that treat data like sharks.
  • Dedicated project manager to facilitate any level of technical customization.
  • Prices as low as 0.02 USD per annotation.
  • Flexible workflows, robust quality check loops & fully trained teams.
  • Edge case analysis, model tuning & core Data science support.


#2. Shaip


Year Founded: 2018

HQ: Ahmedabad, Gujarat, India

Company Size: 201-500 employees

Specialties: AI Training Data, Data Collection, Labelling & Annotation, Data Catalogs & Licensing, Conversational AI, Healthcare AI, NLP, Computer Vision

About: Shaip is a structured AI data solution provider. They provide structured data to train AI models with superior accuracy and desired outcomes. 


  • Highest quality labeled data for Text, Audio, Image & Video in a fraction of the time.
  • 15+ years of demonstrated expertise in collecting, transcribing, and annotating quality data.
  • A vast inventory of millions of datasets.
  • Data collection from across the globe.
  • Create, license, or transform unstructured data into highly accurate and customized training data.


#3. Infolks


Year Founded: 2016

HQ: Mannarkkad, KERALA, India

Company Size: 201-500 employees

Specialties: image annotation, artificial intelligence, machine learning, bounding box, polygon/contour annotation, semantic segmentation, critical point, text annotation, redaction, Lidar, autonomous vehicle, autonomous driving, ADAS, agritech, medical AI, logistics, text annotation, robotics, aerial image annotation, outstaffing, BPO, and outsourcing

About: Infolks is a startup focused on all kinds of data labeling services for machine learning applications requiring training data.


  • Expertise in several kinds of data annotation services.
  • Service experience of 5 years in the data labeling area. 
  • Best quality services are delivered in a triple-level quality assurance system.
  • GDPR standards to guarantee the best quality data and security.
  • Data Annotation for various use-cases, including Autonomous vehicles, agri-tech, med-tech, logi-tech, retail-tech, and human attribution.


Mrinal Walia